July 17, 2000

Finances a major stressor for families
___By Ken Camp
___Texas Baptist Communications
___GLORIETA--Responsible family money management involves a series of deliberate choices, including replacing impulse buying with "delayed spending mechanisms," according to Roger Hall.
___ Hall, treasurer and chief financial officer of the Baptist General Convention of Texas, led conferences on family money management at the Texas Baptist Family Reunion July 1-7.
___ "As Christians, we are responsible to God for how we handle our resources," Hall said. "Stewardship is not only the tithe, but also what we do with the other 90 percent."
___ In addition to having spiritual implications, financial problems also cause stress within families, he observed. One survey revealed finances as the top stressor in the family among 58 percent of married men, 66 percent of married women and 87 percent of single mothers.
___ Setting goals and breaking bad habits are two crucial steps toward becoming responsible money managers, he noted. Goals should be set for the short-term, mid-term and long-term, and the large goals should be broken down into achievable bites.
___ Debt reduction or debt elimination is a worthy goal, he observed. But unless destructive habits are changed, the problem will reappear.
___ "It may be that excessive debt is the effect and overspending is the cause," he said.
___ One key to breaking the overspending habit is learning to make decisions deliberately rather than spending impulsively, Hall said. He suggested five questions as criteria for making discretionary spending decisions:
___ Is it consistent with Christian principles?
___Is it in keeping with established financial goals?
___ Have I given the matter careful consideration?
___ Have I communicated with God and my family about the purchase?
___ Will I feel good about this purchase in the future?


Characteristics of an effective money-management plan
___ GLORIETA, N.M.--Roger Hall, treasurer and chief financial officer for the Baptist General Convention of Texas, identified nine characteristics of an effective money management plan.
___ Honors God. A truly Christian financial plan is "bathed in prayer" and consistent with biblical teaching.
___ Goal based. Goals aid in concentration and help families find solutions. "Goal-setting provides a rational basis for appropriate action," Hall said.
___ Shows funds timing and sources. The plan is specific about the "when and where" of income.
___ Goal-related use of resources. Goals make families less likely to become sidetracked in their spending.
___ Indicates priorities. It distinguishes between optional and essential purchases and keeps families focused on goals.
___Monitors financial position. The plan provides a readily observable measurement of financial health.
___ Provides for savings and reducing debt. Hall recommends setting aside a contingency account equal to at least three months' income for any "unexpected bump in the road."
___Builds good spending habits. The plan creates "delayed spending mechanisms."
___ Fosters periodic reviews. The plan should be reevaluated and adjusted every three months or so.



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