Budgeting & Money Management for Moms and Families (w/ a Biblical perspective)

Money plays a significant role in our lives, and it often comes with underlying stress and friction, especially in marriages and families. Many people struggle to manage their finances effectively, even when they have a decent income. In this blog post, we will explore a biblical perspective on money management and introduce practical steps to achieve an ideal balance between financial responsibility and enjoying life through effective budgeting and money management.

The Parable of the Talents

One powerful biblical lesson about money comes from the Parable of the Talents. In this parable, a master entrusts different amounts of money to his servants based on their abilities. Those who wisely invest and multiply their talents are commended, while the one who buries his talent is rebuked. The key takeaway is that being faithful with the resources we have, no matter the amount, leads to blessings and greater responsibilities.

“No one can serve two masters…” (Matthew 6:24):

Another crucial biblical principle regarding money is the concept that no one can serve two masters. In Matthew 6:24, Jesus teaches that we cannot serve both God and money. This means that our lives should not be controlled by the pursuit of wealth or material possessions. Instead, we should focus on being good stewards of the resources God has provided and use them wisely.

Separating Bills from Spending

To apply these biblical principles practically, we recommend separating your bills from your spending. This straightforward approach helps you gain clarity and control over your finances. Here’s how it works:

1. Bills Account: Set up a dedicated account for your monthly bills, including rent or mortgage, utilities, and loan payments. All your income goes into this account.
2. Spending Account: Allocate a specific budget for your variable expenses, such as groceries, gas, and entertainment. Divide that number by the number of paychecks you have each month. Transfer this amount from your Bills Account to your Spending Account each paycheck.
3. Bills on Autopilot: Automate your bill payments as much as possible to ensure they are always covered on time, eliminating the stress of missed payments and late fees.

Tracking Your Spending

One quick exercise you can use to gain a better understanding of your spending habits is to print & review your bank statements from the past three months. Use different highlighters to categorize your expenses, such as bills, restaurants, groceries, and other discretionary spending. This exercise will help you identify where your money is going and where you can make adjustments.

Managing money from a biblical perspective involves being faithful stewards of the resources we have been given. Separating bills from spending and tracking your expenses are practical steps that align with these principles. By achieving an ideal balance between financial responsibility and enjoying life, you can experience peace and prosperity in your financial journey. Remember, you don’t have to do it all at once—start where you are and make gradual improvements to find your ideal financial balance.

Budget Action Items:

1. Assess Your Financial Situation: The first step in getting control of your finances and reducing anxiety is to assess your financial situation. Print out your bank statements for the past three months and write down your income, expenses, and spending.
2. Create a Budget: A budget is essential for managing your finances. It helps you see where your money is going and ensures that you allocate funds for various needs and desires, including personal spending. This means planning your money going forward, not simply accounting for what you spent in the past.
3. Personal Spending Budget: It’s crucial to have a line item in your budget for personal spending. This allows you to allocate funds for things you want to buy for yourself without feeling guilty and without stealing money from your other budget items.
4. Kids’ Budget: Similarly, allocate a specific budget for your kids. This helps you set ground rules for their needs and wants, preventing overspending on them.
5. Set Ground Rules: Establish clear boundaries for how much you’re willing to spend on your children’s activities and desires. This prevents impulsive spending and teaches them the value of money.
6. Remove Easy Access to Spending: Remove saved payment methods from online accounts like Amazon or PayPal to reduce impulsive purchases. Keep your bills separate from your discretionary spending.
7. Shift Your Mindset: Don’t sacrifice your own needs and desires for your children. Teach them that it’s okay to spend money on yourself, but do it within the boundaries of your budget.
8. Communication: Have open conversations with your spouse about finances. Discuss your goals and how you want to teach your children about money.
9. Use Money as a Tool: Understand that money is a tool, not a controlling force. It can help you achieve your goals and improve your family’s future. If you don’t master it, however, it will master you, your emotions, your decisions, your time and your relationships.
10. Plan and Set Goals: Take a strategic approach to your finances. Set goals, make a plan, and stick to it. Millionaires achieve their wealth by purposefully managing their money through budgeting and money management – not accidentally. Be like them.

By following these principles and taking a proactive approach to budgeting and money management, you can reduce financial stress, provide for your family’s needs, and enjoy some of the fruits of your labor without guilt. Remember that financial well-being is about balance and intentionality, and it’s possible to achieve both your financial goals and provide for your family’s needs through wise budgeting and money management.