A growing number of Christians are embracing the ... - Biola University

Being a Good Steward in a Bad Economy
The summer of 2008 was not a pleasant
one for the American economy. Gas
prices skyrocketed from one all-time
high to another, the stock market plummeted at a
pace not seen since the Depression and the
number of home foreclosures continued to set
records. The credit crunch and housing crisis
continued to stifle the slowing economy, leaving
many American families with increasingly little
financial breathing room.
Whether officially a recession or not — and
the majority of polled Americans do label it as
such — the economy is certainly on the downturn,
and in a climate such as this, tithing and
charitable giving are often the first things to be
cut from budgets. But shouldn’t Christian financial
stewardship be the same no matter what the
state of the economy?
Jim Canning, an associate professor of fi nan -
ce and management at Biola’s Crowell School of
Business, believes that as Christ ians we are called
to honor the Lord by giving him the first part of our
income (Proverbs 3:9), not waiting to see if we
have anything left over.
It’s not about a prosperity gospel, said
Canning, but rather an expression of our love
for the Lord and thanks for the blessings we
have. Christians should trust that God will provide
if we honor him with our giving, though
n
Tips for financial
success in a recession:
l Pay your bills faithfully.
l Prioritize your debt, making sure you don’t
compromise your home or your transportation.
l Negotiate with creditors as needed. Be
proactive.
l Pay extra whenever you can to accelerate
payoff dates.
l Have part of your paycheck automatically
transferred to a savings account.
l Keep some money in a secure emergency fund
for unforeseen expenses.
l Discipline yourself to use cash rather than
credit cards.
l Control spending on non-essentials.
l Have a garage sale to generate extra cash to
pay down debt or to increase savings.
l Cancel cable/satellite or other superfluous
monthly expenses.
obviously we still have to use
judgment, especially when times
are tight.
“It’s easy to be a good steward
when things are plentiful,” said
Canning, “But in hard economic
times, a steward just has to be wiser
with their money.”
There are many practical ways
that Christians can manage their
money wisely in the midst of a constricting
economy. Most im por -
tantly, said Canning, is the elimination
of credit card debt. Most
Americans spend more than they
make, purchasing things with credit
cards and worrying about it later,
but this kind of debt can accumulate
quickly and is very costly.
Canning suggests that an easy
way to eliminate credit card debt is
simply to discipline oneself to use
cash whenever possible. The aver -
age person who typically uses a
credit card will spend 34 percent
more than the person who typically
uses cash, he noted.
But in addition to trimming ex pen ses
and cutting down on debt, it is also smart to
wisely invest whatever surplus money one
does have.
One of the wisest investments someone can
make is to sign up for a retirement plan —
whether a 401(k) or a 403(b) — that their company
is offering, especially if there is a company
match involved, said David Little (’93), vice
president of Eclectic Associates, a financial planning
firm in Fullerton, Calif.
Other smart ways to use surplus money
include paying down debt, opening a Roth IRA or
establishing an education fund for children.
It is also important to not let charitable giving
and church tithing fall to the wayside during
tough economic times, Little said.
As a financial planner for 15 years, Little
said he sees clients’ tax returns and is constantly
amazed at the high salaries and “woefully low”
amounts of giving, even among Christians. To
him, giving to the church or other Christian
organizations is a crucial part of stewardship.
Canning agrees, suggesting that Christians
should seek God’s wisdom and pray about where
to give their money. Resources like the Evan -
gelical Council for Financial Accountability
(www.ecfa.org) can also help guide Christians
in wise charitable giving.
“Investing in the Lord’s work is investing in
eternity,” said Canning. “Giving to the Lord is
one of the wisest investments you can make.”
How much we can give, however, is largely
dependent on how we manage our finances, and
Canning and Little agree that it all comes back to
self-discipline and prudent planning for the
future, living like the diligent ant in Proverbs 6:6.
“In times like these we learn the lesson,”
said Little, “that reckless use of our money in
good times can reap very negative consequences
when times get tough.”
The best advice for how to deal with a recession,
then, is perhaps to just be ready when it
comes. Good stewardship with our money, after
all, is something we should always aspire to, not
just when the economic push comes to shove.
– Brett McCracken
F A L L ’ 0 8 1 5