Financial Stewardship: Teaching Children To Steward Wealth With God At The Center

Children who learn to manage money while they're young often grow up to be financially responsible adults. By discovering how to use basic tools such as working, budgeting, giving, and investing, children can accrue spiritual and emotional benefits along with financial advantages.

Don't just give your kids money. Teach them that they are stewards of God's money, that money makes a great servant but a terrible master. 

Importance of Financial Stewardship in Christian Teachings

In some cases, parents would rather talk with their kids about sex than bring up the subject of money. One study revealed that only 28% of parents talk with their kids about finances, and 82% of the parents who failed to discuss the subject cited fear as their biggest barrier.

Jesus never shied away from talking about money, however, and He often did so. He said that the way we use money reflects the state of our hearts (Matthew 5:42). He taught his followers to be generous, but to do so humbly  (Matthew 6:2). And He said no one could serve both God and money (Matthew 6:24).

Read completely and in context, the Bible has a lot to say about possessions and money. We learn from scripture that financial stewardship requires more than managing our finances well. We also recognize that everything we have is a gift from God, and we are called to use it wisely and for His glory. 

Role of Parents in Teaching Children About Money and Stewardship

In a survey entitled Finance and Parents, almost 75% of parents said a financial advisor was the most appropriate person to teach their children about money. At Cooke Wealth Management, we are financial advisors, so we would like to speak to this idea. We aren't the best people to teach your child about money. YOU ARE!

As a mom or dad, you are your child's teacher. What they see you do at home matters more than anything we could say. Your kids are watching you, listening to you, and learning from you. Even if they don't do what you say with money, they will almost certainly imitate what you do. Whether you want to or not, you are always teaching your child about money.

The Goal of Raising Financially Responsible and Spiritually Grounded Children

The goal of raising financially responsible and spiritually grounded children is not just about preparing them for a successful financial future, but also about helping them to develop a deeper relationship with God. When your children learn to steward their finances with God at the center, it can help them in their faith and become better equipped to live out God's purpose for their lives.

Biblical Foundations of Financial Stewardship

To understand the importance of financial stewardship, we start by looking at the Bible. Biblical foundations of financial stewardship that parents can teach their children include:

God's Ownership of Everything (Psalm 24:1)

The Bible teaches us that God created the universe and owns everything in it. As human beings, our job is to steward God's resources as responsibly as possible. We aren't to lavish them on our own desires, and we aren't to waste them with foolish speculation. We're to use our resources and talents to glorify God and serve other people.

The Parable of the Talents (Matthew 25:14-30)

In this story, the master rewards faithful servants and punishes the unfaithful ones. The parable of the talents teaches us that we are responsible for using our resources wisely and investing them for God's purposes. The story emphasizes the importance of doing our best with what God has entrusted 

The Principle of Contentment (Philippians 4:11-13)

Contentment comes from a heart that is satisfied with what God has provided and is not always seeking selfish gain. Contentment is never easy, but it is possible. 

“It is always possible to be thankful for what is given rather than to complain about what is not given," said the Christian writeR Elisabeth Elliot. "One or the other becomes a habit of life.”

Honoring God with Your Wealth (Proverbs 3:9)

In Proverbs 3:9, we are reminded to honor God with our wealth and with the first fruits of our harvest. "First fruits" isn't a term we use much in the modern world, but it simply means we are to give God our best, not what's left over. 

That might mean writing a check to your church or a charity before you pay other bills. Or it might mean making your tithe a nonnegotiable in your budget. By teaching children these foundational biblical principles of financial stewardship, parents can help them understand the importance of managing their finances in a way that honors God.

Ages 4-7: Understanding the Concept of Money and Basic Budgeting

Children in this age group are often beginning to understand the concept of money and are developing their own ideas about its value. It is important to introduce them to money, and even the basics of budgeting.

Introducing Coins and Currency

As adults, we often pay with digital currency, so why should we teach kids to use physical currency? 

Children are concrete thinkers. They are unlikely to understand the concept of money leaving a digital account. But they can understand receiving money and using it as a medium of exchange.

You can play games and activities that involve counting real or pretend money, such as setting up a pretend store or playing "grocery store cashier." There are also several bank-like or cash register toys around this age group. You can help young elementary schoolers understand the value of money by involving them in the exchange of coins or small bills for small items at the real store.

Saving, Spending, and Giving

With every dollar you earn, you make a choice to save it, spend it, or give it away. Saving, spending, and giving are all critical to sound financial management. 

Some kids will naturally want to hoard their treasure. Others might be born a spender while still others seem bent toward generosity. As your children grow, you’ll likely want to make sure your hoarder learns to enjoy and share money, your spender learns to set limits, and your giver learns to share responsibly.

You can give them a small allowance and help them understand they have options on what to do with their money. You might help them divide it into different jars for saving, spending, and giving. Use clear glass or plastic jars, so they can see the money starting to pile up. Help them track their money, so they know how much is in each jar. 

You may even want to reward saving or giving by matching what's in those jars. After all, your employer probably offers a dollar-for-dollar match to your 401(k) or charitable contribution. 

The Value of Hard Work and Earning Money

According to one study by T. Rowe Price, 75% of parents give their children an allowance, and most require them to work for their money.

Teach children that money comes from hard work and that they can earn money by doing simple chores or tasks around the house. Share stories with them about what you do and how you earn money. Encourage them to set goals for things they want to buy and save their money to achieve those goals. 

Ages 8-12: Building Healthy Financial Habits

Children in this age group are becoming increasingly more independent and are often capable of understanding more complex financial concepts than their younger peers. It is important to build on the foundational knowledge they gained in earlier years and teach them about budgeting, and giving. 

Budgeting and Setting Financial Goals

A budget is simply a plan for your money. It's a written declaration of how much you will (and won't) spend on certain items. A budget can help kids in this age group better understand planning ahead and the concept of opportunity cost. For example, if you budget $50 to buy a video game, then you can't budget the same $50 for a pair of sneakers.

Is there a favorite treat or activity your kids enjoy? - whether it’s ice cream or a trip to the trampoline park, you can help them save until they have enough to buy that treat.

Work with your kid to track their progress towards their goal. It can be as simple as a chart on the refrigerator door or a piggy bank you count together. If your kid is already using a mobile device, there are popular budget apps for kids. Some of which include FamZoo, RoosterMoney, and Greenlight. These tools let you set limits, prioritize purchases, or even pay your kids interest. FamZoo has an option for you to pay your kids with prepaid cards. RoosterMoney's premium version lets you link chores to money, and Greenlight features a set-it-and-forget-it allowance payment function. You just need to find the product that works best for you and your family.

Practicing Generosity Through Tithing and Charitable Giving

Encourage your child to donate a portion of their allowance or earnings to a charity of their choice, and involve them in family discussions about charitable giving and volunteer work. Many organizations send pictures and stories that illustrate the impact your gift can have on other people. These can be effective tools for family discussions.

Overall, helping children ages 8-12 to build healthy financial habits requires a combination of education, guidance, and hands-on experience. By teaching children about budgeting, and giving, parents can help them develop a foundation for a lifetime of healthy financial habits.

Ages 13-18: Preparing for Financial Independence

Teenagers are often searching for a sense of self, developing independent interests, and starting to prepare for their future adult lives. Now is a good time to consider teaching them about savings accounts or investments, financial planning, and managing college expenses. 

The Importance of Financial Planning for the Future

Most teenagers don't think much about the future — unless it's about the fun they plan to have in college. But understanding how to save and invest is critical if they are going to be financially successful adults. 

Teach them about the benefits of setting goals, creating a budget, and saving for emergencies. Encourage them to create a plan for achieving their long-term financial goals, such as buying a car, a house, going on trips, or even saving for retirement.

Learning about Credit and Debt

Credit cards are a ubiquitous part of modern life. They do make paying for purchases easier at the register, but they've also put 35% of Americans into $986 billion of debt. Teach your children the basics of credit and debt before they join the ranks of the indebted. 

If explanations don't work, you may try letting them learn the hard way. Offer to lend your child money at a high-interest rate and with low payments. They'll soon grow tired of seeing their money slip away for a game or gadget they don't even use anymore. It's a tough lesson, but if you learn it early, the pain is much more bearable.

The credit card offers with your child's name on them will start to arrive in the mail as soon as they graduate high school. Make sure your son or daughter is ready.

Navigating College Expenses and Student Loans

College isn't usually free, but not every teenager is clear about the actual costs of higher education and the various options for paying for it. help them understand the differences between federal and private student loans and the long-term consequences of taking on too much debt. Encourage them to explore alternative options, such as attending a community college or working part-time while in school, to minimize their reliance on loans.

Overall, preparing teenagers ages 13-18 for financial independence requires a focus on education, planning, and informed decision-making. By teaching teenagers about savings, financial planning, and managing college expenses, parents can help them develop the skills and knowledge they need to make smart financial choices and achieve long-term goals.

Teaching Children the Value of Work and Entrepreneurship

As human beings, we are designed to contribute meaningfully to the world around us. Kids can learn to enjoy the creativity of work today even while they are preparing for the employment realities of the future.

Biblical Principles of Work and Diligence (Proverbs 14:23)

Teach children that work is a gift from God and that they can use their talents and skills to serve others, provide for their families, and make a difference in the world. Share stories with them about how hard work has led to the accomplishment of your goals or the roof over their heads or the food on the table. 

Christian organizations such as Focus on the Family, Minno Kids, and Theology of Work offer tools to help parents equip their children with a God-centered view of work. 

Encouraging Children to Earn Money Through Age-appropriate Jobs

Help children learn the value of earning their own money by encouraging them to take on age-appropriate jobs such as babysitting, lawn care, or dog walking. By earning their own money, children can learn the importance of earning, budgeting, and saving, as well as the satisfaction that comes from working hard and achieving their goals.

Fostering Entrepreneurial Skills and Creativity

Children often develop their entrepreneurial skills and creativity by exploring their interests and passions. Consider helping them identify potential business ideas and teach them the basics of marketing, sales, and customer service. Encourage them to take risks and learn from their mistakes, and remind them that failure is an important part of the learning process.

By instilling a strong work ethic and fostering entrepreneurial skills, parents can help their children become financially independent and make a positive impact in the world.

Guiding Children in Philanthropy and Generosity

Generosity is fundamental to a God-centered approach to money. It not only reinforces the concept of stewardship - that it’s not our money to begin with, but can help your kids play an active role in God’s kingdom. Try some of these creative ideas for guiding children in philanthropy and generosity.

The Importance of Giving in Christian Teachings (2 Corinthians 9:7)

Your children are likely to get the idea that more stuff equals more happiness. It's what the broader culture teaches, and the media does a good job of getting that idea across to kids. We know, however, that generosity (and Jesus) — not consumption — is really the key to happiness.

Teach children about the importance of giving 2 Corinthians 9:7 says, "Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver." Share your experience with your kids; ways in which you have experienced joy in giving, how giving has impacted your finances or the lives of others, how you decided on how much to give. Explain to children that giving is an act of worship and a way we can demonstrate our love for God and others.

Identifying Causes and Organizations to Support

Encourage children to think about causes that they feel passionate about supporting. Find ways to serve as a family. Help children research and understand the impact of charitable organizations and how donations can make a difference. 

For younger children, this might include your home church or local animal shelters. Older children may be interested in supporting global missions or community development projects in your city. Teens may enjoy volunteering or helping fundraise for a charity as part of giving back. 

Involving Children in the Decision-making Process for Charitable Giving

Don't be afraid to let your children learn about hunger, poverty, and other issues affecting the world. And be sure they see the difference they can make as they give to organizations that help solve those issues. 

As a family, you can discuss and decide together how to allocate your charitable donations, which can also help reinforce the importance of generosity and giving back.

With a little intentionality, you can help your children develop a lifelong habit of generosity and make a positive impact in the world.

Modeling Financial Stewardship as Parents

Children don't always listen to what we say, but they never fail to watch what we do. As Christian parents, one of the most effective ways to teach children about financial stewardship is by modeling it ourselves. 

Leading by Example in Budgeting, Saving, and Investing

Let your children see you budget and manage your finances. Show your children how you budget, save money, and make wise investments. Explain to them the importance of living within your means and avoiding debt. This can help them develop positive financial habits and learn the value of responsible financial management.

Making Joint Financial Decisions as a Family

Involve your children in financial decisions by discussing and making joint decisions as a family. This can help children develop a sense of ownership and responsibility for financial decisions, and learn how to make wise choices with money. 

For example, you can involve your children in deciding how to allocate your family's charitable donations or discuss major financial purchases such as a new car or home. No one is suggesting that your kid gets a deciding vote, but let them participate in the process so they'll see how it's done.

Practicing Transparency and Open Communication about Finances

Be open and transparent about your family's finances, including discussing financial goals, concerns, and challenges. This can help children understand the importance of financial responsibility and the reality of financial decisions. By sharing your own experiences and struggles with money, you can also help your children learn from your mistakes and successes.

Fostering a Strong Spiritual Foundation

How we spend our money is a series of spiritual decisions. Jesus said, "Where your treasure is, there your heart will be also" (Matthew 6:21). If you want your children to lead lives that honor God, one way to help them do this is to teach them how to handle their finances.

Incorporating Prayer and Scripture in Financial Decisions

Make prayer and scripture reading a part of your family's financial decision-making process. Encourage your children to pray and seek God's guidance before making financial decisions. Incorporating scripture in your discussions about money can also help children understand the importance of financial stewardship and the biblical principles that guide it.

Encouraging Children to Seek God's Guidance and Wisdom (James 1:5)

We don't have to wonder how God wants us to behave with money. He tells us in the Bible, through the Holy Spirit, and through our friends and family in the church. We can pray for His specific direction, being assured that God will give us the wisdom we need to honor Him with our decisions.

Emphasizing the Importance of Living a God-centered Life

Remind your children that accruing mountains of money is not the goal of our existence, but living a God-centered life is. 

Living for God is a great adventure, but it often runs contrary to cultural values. When we live with God at the center of our finances, we have an opportunity to steward His wealth for His glory — not our own. And that's an exciting way to live!

Conclusion

Teaching children about financial stewardship is a critical aspect of Christian parenting. By instilling Biblical financial principles at an early age, parents can have a profound impact on their children's lives and help prepare them for a future of wise financial decisions and spiritual growth. The benefits of such an investment in their children's lives can be far-reaching and long-lasting, extending beyond their own family to future generations.

The Long-term Impact of Teaching Children Financial Stewardship

You can change your family for good starting right now. Your children can inherit not only your wealth but your wisdom as well. They will be saving, spending, and giving long after you have gone. The impact of what you teach your children today has the potential to still be felt generations from now. 

Preparing Children for a Lifetime of Wise Financial Decisions and Spiritual Growth

By fostering a strong spiritual foundation in your children, you can help them understand the true purpose of wealth and the importance of using it to honor God and bless others. As Kingdom-minded stewards, our children can grow up to have a positive impact on their communities and the world around them.

The Role of Parents in Raising the Next Generation of Kingdom-minded Stewards

As Christian parents, we are responsible for raising a generation of children who understand the value of financial stewardship and who live their lives in service to God and others. By doing so, we can leave a lasting legacy of faith, generosity, and wise financial stewardship for generations to come.