Family finances

Family Finances

Budgeting and Spend Control “Tightening our

Purse strings”

Budgeting and Spend Control “Tightening our

Purse strings”

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A Good StewardFocuses on God

Financial stewardship is treasury management that helps us to escape the trap of selfishness by keeping ourselves spiritually focused on God.

The thrifty Person’s Credo

“I don’t want to be a tightwad. I want to be frugal. I want to celebrate life, to surround myself with beauty, to be content, whatever state I am in. I want to manage my finances, to organize my routine and to use my possessions wisely. I want to budget resources and time, to help others and to bring glory to God.”

Cynthia Yates

The Time you Get Married

If you and your partner have decided to settle down together, you should discuss how you are going to handle the financial side of your marriage.

Type of Covenant

In community of Property Assets and liabilities are pooled

together and spouses have an equal share in the estate.

Out of community of property without accrual All assets and liabilities acquired or

incurred before or during marriage belongs to each spouse separately

Out of community of property with accrual Each spouse keeps what was

accumulated before marriage. All that is acquired or incurred in marriage is jointly owned or owed.

Who will pull thePurse Strings?

“If you’re not good in money management, marry someone who is.”

Wayne Miller: GC Stewardship Department

Before tying the knot, find out whether or not, your partner is responsible with money.

Children and money

Stewardship The concept of Stewardship in teaching

children about money instills a notion that money is a trust given to us by God

The Church Another important part of our children’s

financial training is to emphasis the importance of the church. If we teach our children with instruction and example to give to the church, it gives us the opportunity to assert to them their place and responsibility in the church.

Financial contentment Teach your children to be content even with

less.

Being practical with Them

The 3 Buckets

Giving

Saving

SpendingThis is the pre-budget

stage for children between the ages of 3 to 8 years.For the 9-12 age group, the children can be taught how to prepare and control a mini-budget. Here a little bit of writing is required. The percentage system can be applied.

Financing Their Education

Paying for a child’s tertiary education can be a very heavy burden for parents to carry, and is often an expense many have not been able to plan for.

Does this mean that your child has to forgo further education?

Financing options To Explore

Savings •Savings for the rainy day, or specifically for the purpose of children’s education can be resorted to.

Investments

•Returns for some of the investments can be liquidated / realised to finance the education of your children

The National Student Financial Aid Scheme

•The fund is a public company established to receive donations which are made available to deserving and financially needy students.

Debt is extremely Bad

“The rich rule over the poor, and the borrower is servant to the lender.”

Proverbs 22::11

Spend wisely

The standard recommendation is for all of us to live within our means. But at times we could be better-off if we could live below our means, thus, we are sometimes forced to cut our expenses to the bone.

Emotional or Impulsive Spending

“He that is slow to anger is better than the mighty; and he that ruleth the spirit than the one who taketh the city.”

Confession of an Emotional Spender

“If I’m angry with my husband or I’ve had a bad day at work, I think that a new dress or maybe some expensive food will make me feel better.”

“I don’t want to be like my mother who left my father with a second mortgage he didn’t even know existed.”

Denise Krieger

Counsel to, and would be,Emotional Spenders

“Was your mother really just like you, or are you like your mother?” Big difference. We all pick up powerful money messages from our parents, whether we know it or not, and my guess is that you learnt a lot about money from her.”

Suze Orman

Major Purchases

Since the purchase of a house is perhaps the greatest cost many of us will ever incur, each one must study his or her personal situation, research the possibilities, and pray for the Lord’s guidance in order to make informed decisions.

Buying a House

Important Consideration

Fixed-Rate Mortgage Bonds Though the rate might be a little bit higher, it

is fixed for the duration of the bond and this is can be of an advantage to the buyer.

Adjustable-Rate Mortgage Bonds The interest rates on these loans fluctuate

with the economy in general. They are normally pitched at one or two percentage points below the prevailing rate and they are then adjusted accordingly.

Major Purchases

Owning a car is a desire for almost all of us in today’s society. So what is the most economical way of obtaining one?

Buying a Car

New or used

When buying a new car, not only consider the question of affordability but also whether buying a new car is the best stewardship of the family’s hard earned cash.

For an average family, a good quality, reliable used car is enough.

Financial Budgeting

    Income Allocation

  Family (a) Family (b)

Income & Expenses Rate Value Rate Value

Income     R 5,000.00   R 5,000.00

Less: Tithe   10% R 500.00 10% R 500.00

Disposable Income 100% R 4,500.00 100% R 4,500.00

Less: Accommodation 18% R 810.00 25% R 1,125.00

Transport   13% R 562.50 18% R 810.00

Groceries   15% R 675.00 21% R 945.00

Education   13% R 585.00 19% R 855.00

Miscellaneous 10% R 450.00 15% R 675.00

Recreation 6% R 247.50 6% R 247.50

Savings   3% R 135.00 0% R 0.00

Investments 12% R 540.00 0% R 0.00

Surplus/Deficit 11% R 495.00 -4% -R 157.50

Concluding RemarksIf you don't have a clear idea of what you want in life and how you're going to achieve it, you'll never know when you do. Goals give us direction and help us to focus on what's important. When we achieve them, we feel competent and confident that we can deal with just about anything.