2—Why This Stuff Matters
Because your future self will thank you
You're on your own!
Okay, that's not totally true. If you're a Christian, you know God is always with you and wants to help with even the most mundane parts of your life. Jesus said, "I will never leave you or forsake you" (Matthew 28:20), and he has promised to help you with your finances (Matthew 6:26).
Still, it's somewhat accurate based on how personal finance works "on the ground" in the real world. We depend on God and follow His wisdom, but we can't abdicate our responsibilities and expect our families, the government, corporations, or anyone else to care for us if we don't. In that sense, we're "on our own" when it comes to securing our financial future.
You are your own personal Chief Financial Officer (CFO) and must also be your Chief Investment Officer (CIO). Even if you find ways to delegate some of these things, you have to manage your income and pay your bills on time. You also need to figure out how to save money for short- and long-term needs. And you need to build generosity into your plans. No one is going to do all this for you.
With the decline of traditional pensions (company-funded retirement plans) and the rise of self-funded and self-directed 401(k) plans (sometimes with a little help from your company), we've all been thrust into the role of CFO and personal retirement fund manager (CIO) whether we're ready for it or not.
As your CFO/CIO, you decide how much to spend and save, how to invest, and how to navigate the tax code to your advantage. These aren't easy tasks; they can feel overwhelming without the proper knowledge and wisdom.
From my perspective as a financial counselor and coach, it is clear that our secondary and higher education systems are failing to prepare students and graduates for these critical responsibilities. Perhaps you've experienced this shortfall firsthand; many young people today are products of these educational gaps.
It amazes me that you can go through high school and college, perhaps even earn a degree in engineering, math, or science, and still be largely unprepared to manage your finances.
When you finally graduate from college and start your first job, you'll be bombarded with information and sales pitches about insurance, health benefits, and retirement options. If you haven’t already, you’ll probably go through a confusing 8-hour HR onboarding session to discuss retirement options, health insurance benefits (health, dental, vision), vacation policy, parking instructions, and other fun topics. But most likely, you’ve received ZERO training and will be very confused about choosing from all the options.
Later, as you earn more, you'll be a target for insurance and stock brokers, some of whom call themselves “financial planners,” "financial advisors," "wealth managers," or “portfolio managers” when they're mostly just salespeople. (To be fair, many are legitimate and will act in your best interest, but you have to find them—more on that in later articles.)
The bottom line is that without information and education, knowing how to make decisions, where to go for help, and who to trust can be very challenging. Plus, you may be receiving your first big paychecks. I realize that "big" is relative, but you may suddenly find that you don't know how to set up and manage a spending plan or if you even need one.
If you're a Christian, you may have heard very little about what the Bible teaches about money, except perhaps that you should "tithe.” Maybe you’d do that if you really understood it. You may ask, "How much should I spend, save, and give? Is borrowing a sin? Is saving for retirement biblical?
The Bible has a lot to say about giving and money. It offers practical wisdom about money: work hard, avoid debt, give generously, save wisely, and be content, but its ultimate message is aimed at our hearts.
Jesus summed it up best in Matthew 13:44-46 when he essentially said: "Sell all you have and buy the kingdom" (my paraphrase). That doesn't mean emptying your bank account; it means offering your whole life, including your finances, to God and His purposes. We begin with that foundational principle as the foundation for everything else.
For reflection: How would you describe the level of responsibility you’ve taken toward managing your financial affairs: too much or too little? If it's too much, perhaps you’re overly obsessed. If too little, are you eager to start doing the things you know you should? Pray and ask God to grant you patience and wisdom as you deal with either of these extremes.
Verse: “Fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand” (Isaiah 41:10, ESV).