Page 1


FAITH & FINANCES Facilitator Guide 2016.2


FAITH & FINANCES Facilitator Guide By: J. Mark Bowers Editorial Team: Jerilyn Sanders, Sam Moore, Amy Kuenzel Illustrations: James Harrison Photography: Gretchen Becker Shaw We would like to thank Dr. Lance Wescher, Dr. Robb Davis and Brandon Russell who provided content direction as well as technical and pedagogical review for Faith & Finances. Additionally, we would like to give special thanks to Gary Nederveld for his partnership and cooperation. We would also like to express our appreciation for the facilitators, participants, and operating partners who used and tested Faith & Finances from Hope for the Inner City and New City Fellowship (Chattanooga, TN), Advance Memphis (Memphis, TN) and Reformed Presbyterian Church (Ephrata, PA). These interactions and discussions have contributed much to the development and contextualization of Faith & Finances. Unless otherwise noted, all scripture is quoted or paraphrased from the Contemporary English Version (CEV). Copyright Š 2012 Chalmers Center The Chalmers Center equips churches with resources and tools to walk alongside people who are poor, breaking the spiritual, social, and material bonds of poverty. As a result, churches model Jesus’ heart for the poor in practical ways, showing His care and power over every part of life.

Permission from the Chalmers Center is required for reproduction or distribution of this material. This curriculum is designed to be used by certified facilitators. To learn about training, give feedback, or for further inquiries, please contact: Chalmers Center 507 McFarland Rd Lookout Mountain, GA 30750 USA info@chalmers.org chalmers.org/finances

2


FAITH & FINANCES: AN INTRODUCTION The teaching and miracles of Jesus Christ proclaim that His Kingdom is here, and coming. He heals our diseases, restores our relationships, forgives our sins, calms our fears, fills our hunger, and yes—even offers the hope of resurrection and new life! Jesus is reconciling all things on heaven and earth, both now and to come. And we, the church, are to declare and demonstrate that He is making all things new. Because of this calling, Faith & Finances has been developed to provide local churches and ministries with a tool for equipping vulnerable individuals and families in their community with a biblical vision for how the comprehensive healing of Jesus encompasses finances. Through Faith & Finances, the local church is equipped to: •

Transfer basic, technical financial management skills to vulnerable people in their congregation or community;

Build awareness among vulnerable families of financial practices and systems and how to overcome real world pitfalls on the path to financial health; and

Encourage vulnerable people, showing them that they are known and loved by God, and that He can provide peace, healing, and freedom in their relationship with Him, with others, with themselves, and with their money.

GETTING STARTED Faith & Finances is a series of twelve sessions on financial literacy for low-income or financially vulnerable adults. Each 90-minute session is designed to meet the learning needs of those who struggle to manage their money. Through group discussions, participants gain important information and skills relevant to their everyday lives. The Faith & Finances course begins with laying the foundation for good financial literacy by discussing money in the context of relationships, attitudes, values, and obstacles. Next, the curriculum encourages participants to plan ahead—to set goals and make a spending plan. After establishing a spending plan, Faith & Finances discusses giving, thrift, debt, and risk. Finally, the curriculum encourages learners to protect their assets and consider their net worth. For further details, see the Faith & Finances Course Map on the following page. WHO

WHO SHOULD PARTICIPATE AND WHO SHOULD FACILITATE FAITH & FINANCES?

The curriculum is designed for groups ranging from 5-20 people. Participants are financially vulnerable adults with limited financial training and a high school level education. The typical course participant has some level of personal debt, no emergency fund, does not live within a budget, and has a net worth near or below zero. Ideal participants are: men and women with job skills (i.e. they are employable), single mothers with small children, men with mandated child support payments, or any person with low or fixed income (e.g. Social Security, disability).

3


The spiritual maturity of the target audience may vary greatly from those who are not believers to those who are mature Christians. By using biblical passages and stories followed by open questions, Faith & Finances is designed to stimulate thoughtful reflection on financial motivations and practices for learners at different places on their journey of faith. The ideal facilitator will have completed at least two years of college and have successfully managed their own assets and finances for at least five years post-college. These facilitators will also be familiar with best practices in the following areas: •

Holistic ministry as described in When Helping Hurts by Corbett and Fikkert;

Socio-economic cultural differences of people living at various income levels;

Facilitation skills and principles and practices of how adults learn; and

Basic financial literacy theory and practical money management skills.

Facilitators and allies help participants to understand and enjoy the learning process and to take action on the basis of the discussions. As co-learners with the participants, facilitators and allies should participate in the activities, modeling openness and vulnerability. They should also make themselves available before, during, and after class. Building real relationships gives them a stronger ability to hold participants accountable to their commitments and persuade them to take action. WH EN

WHEN SHOULD FAITH & FINANCES TAKE PLACE?

The Faith & Finances training is provided in sessions of 90 minutes for a duration of 12 total sessions. The ideal configuration is weekly classes for 12 weeks (approx. three months). This is based on the assumption that participants may not be accustomed to intensive coursework and extensive time commitment. This also allows the participants weekly time to track their income and expenses—which is key data for building a monthly spending plan. The Faith & Finances lessons are designed to be easy to use, scripted so that the facilitator only needs 20-30 minutes of preparation time each week. WH ER E

WHERE SHOULD FAITH & FINANCES TAKE PLACE?

The primary intention of Faith & Finances is that the training take place in a local church. However, Faith & Finances sites have flourished around the US in myriad settings – from jails and lowincome housing projects, to non-profit organizations and community centers. The learning space for the course should be large enough to accommodate up to 20 people with access to tables for writing, wall space for posting group activities, and physical space for small group discussions and activities.

4


FAITH & FINANCES: COURSE MAP

Laying the Foundation for Financial Literacy

Setting Goals and Budget Building

Integrating Sound Practices into Budgeting

Protecting Assets and Considering Net Worth

• Unit 1: Connecting Money and Relationships • Unit 2: Exploring Values and Attitudes • Unit 3: Overcoming Financial Challenges

• Unit 4: Setting Savings Goals • Unit 5: Creating a Spending Plan

• Unit 6: Living Simply • Unit 7: Giving Joyfully • Unit 8: Managing Debt • Unit 9: Taking Loans

• Unit 10: Getting Banked • Unit 11: Preparing for Emergencies • Unit 12: Planning for Long-Term Change

5


PREPARING FOR FAITH & FINANCES Each session of Faith & Finances begins with an information box that contains a summary of the objectives, materials needed, preparations, and time required to conduct the session. Review this information carefully. The “Materials Needed” section lists the items you’ll need to gather before the session. The “Preparation” section lists actions needed before the session begins—like creating flipcharts or researching local prices and services. Other important information about Faith & Finances is as follows: Study the objectives. The objectives in the information box for all Faith & Finances sessions are each mapped to a specific learning task. Studying this connection helps the facilitator to focus and direct each task in the session toward accomplishing the learning objective. Be mindful of the time. Allow participants to speak and engage with the content, but keep the session moving. Otherwise, key technical content may not be covered. Utilize the 4As1. The design of each Faith & Finances session uses the 4As of learning: ANCHOR the content in the participants’ experiences, ADD new content to the session, APPLY the new content through an activity during the session, then ask participants to take the new learning AWAY through small commitments to act. Take full advantage of this framework to encourage reflection and action on the new knowledge, skills, and attitudes being formed. Adapt the content to the needs of your target group. An example or story might better connect with your group if you change it from what is written in the curriculum. This is highly advisable! You know your participants best—feel free to make the content as relevant as possible. The Faith & Finances curriculum is not static—it serves as a tool and a guide for you. After each session, post all flipcharts created on the walls of the training room. Leave these charts up and continue adding to the walls each week to build on further learning. As the sessions progress, participants can easily see and call to mind past sessions – and the facilitator can draw on previous learning tasks. Posting participant responses that are well-written on the chart also affirms their contributions and helps them to own the learning process. Make the scripture accessible. For ease of understanding, all scripture used in Faith & Finances is from the Contemporary English Version of the Bible, unless otherwise noted. Using a readable version and printing the passages directly in the Faith & Finances Participant Guide helps to create a comfortable environment for those who may not have had much prior experience locating passages in a Bible.

1

6

Derived from Global Learning Partners’ 4 Steps for Learning That Lasts, 2012.


ADDITIONAL FEATURES OF THE FAITH & FINANCES CURRICULUM •

Regular font = specific information or instructions for the facilitator to read or paraphrase to the participants.

Italics font = instructions for the facilitator. Do not read this text to the participants.

Bold = highlights action verbs that connect the participants to the content through action-oriented tasks.

Arrow (

) = specific open questions for the facilitator to ask. Deliver this text as it is

written. Allow for discussion time and a variety of voices to be heard.

PRINCIPLES FOR GOOD FACILITATION OF FAITH & FINANCES2 Participation and dialogue are essential in adult learning. As the facilitator, you are also a learner. The participants come to the event with rich experience and add value to the learning. All participants, including you, must both teach and learn. The facilitator is responsible for engaging the learners and listening to them with respect. Discussions about money are sensitive and intimately connected with issues related to personal relationships. It is important to establish a safe, affirming environment so learners will participate in discussions, share their experiences, and feel comfortable asking questions. Facilitating group discussion

2

Listen carefully to learners, and thank them for speaking. When people feel safe, they speak more freely, give honest answers, ask questions and, in the end, learn more.

If people give a very short answer, you might want to encourage them to say more. You could say, “Tell us more about that.”

Avoid interrupting people while they are talking. If you must interrupt someone who is talking too long, do so, but apologize.

Try to have as many people as possible participate in the discussion. Encourage this by saying, “Let’s hear from a new voice...”

Use paired discussions where indicated so that more participants, especially very quiet ones, will have the opportunity to share their thoughts.

Derived from Savings: You Can Do It! by Freedom From Hunger, 2008.

7


Telling a story •

Know the story well and practice telling it dynamically before the session.

Show different feelings on your face and in your gestures, such as worry, excitement and fear.

Be sure to follow a story with the questions presented in the curriculum. Most learning happens after the story, during the discussion of open questions.

Presenting information •

Be familiar with important points to avoid reading them word-for-word. After an important point, pause to let participants think about it. Look at the participants as you give the information. Even if you read the information, look up occasionally so that people do not feel ignored. Watch people for signs of confusion. If you see signs of confusion, stop and ask what questions they have.

IMPORTANT PRINCIPLES OF FACILITATION •

Create a safe learning environment.

Give feedback to the participants and praise them for their efforts.

Show respect by valuing the participants’ knowledge and experience with the subject.

Role plays, learning games, and art affirm and draw on different learning styles present.

Let the participants know that you are a learner with them.

Ask open—not closed— questions to promote discussion and interaction.

Use small groups (as suggested in the sessions). Small groups help involve all participants, build a sense of teamwork and create safety.

Asking open questions •

8

Use open questions to draw out ideas, opinions and experiences. These questions help participants think for themselves, discuss the issues and make decisions. A closed question sounds like this: “Any comments?” An example of an open question: “What can you add to this discussion?”

Pause after asking an open question to allow participants time to think. Look around the group expectantly as you wait for someone to answer.

If no one responds, ask the same question using different words and pause again to indicate you are waiting for responses.


Once someone volunteers a response, take some time before proceeding to the next question; ask if someone else has something to add to the first response.

Listen to the responses for important points and commend the speakers.

Creating safety •

Learners need to feel that their ideas and contributions will be valued. Encourage even small efforts. Be careful not to judge or humiliate learners in front of others.

Some subjects, especially related to relationships and money, may be difficult to discuss in a group. Be sensitive and aware of the participants’ reactions and protect their feelings. Having the participants set guidelines and ground rules up front helps to create this safety.

9


10


CONTENTS 1.

Connecting Money and Relationships

13

2.

Exploring Values and Attitudes

27

3.

Overcoming Financial Challenges

43

4.

Setting Savings Goals

57

5.

Creating a Spending Plan

71

6.

Living Simply

87

7.

Giving Joyfully

103

8.

Managing Debt

115

9.

Taking Loans

131

10. Getting Banked

159

11. Preparing for Emergencies

173

12. Planning for Long-Term Change

191

13. Faith & Finances Alumni Gatherings: Getting Started

201

14. Illustrations

215

15. Faith & Finances Evaluation

235

16. Glossary

237

17. Reference Page

239

Pages 12 - 55 are not included in this preview


UNIT 4

SETTING SAVINGS GOALS OBJECTIVES By the end of this unit, we will have: 1. 2. 3. 4. 5. 6.

Reviewed our recent practices with income and expenses; Shared our own experience with goal-setting; Examined a story about setting long and short-term savings goals; Set a long and short-term savings goal; Shared and evaluated potential savings goals; and Committed to sharing our goals and to continue tracking income and spending.

MATERIALS NEEDED

PREPARATION NEEDED

Participant Notebooks/Pens

Flipchart/Markers/Tape

Colored Paper/Post-it Notes

Create Flipcharts: Meeting Our Goals, Eva and Isaac’s Savings Goals, Savings Goals, Evaluation Symbols

Bible

Nametags: Isaac, Eva, Jessica, the elder, and Eva’s mother

Create poster board cut-outs: check mark, plus sign, triangle, question mark

Review/note page numbers in participant guide

TIME 90 Minutes

57


Faith & Finances Facilitator Guide

INTRODUCTION (5 MINUTES) Welcome back to our session today! Review our chart on the wall. In our last session, we discussed Overcoming Financial Challenges—let’s put a check next to that topic. To review, let’s hear one or two quick things that stick with you from our last session together about financial challenges. Today, we’ll begin discussing our next topic: Setting Savings Goals. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Connecting Money and Relationships Exploring Values and Attitudes Overcoming Financial Challenges Setting Savings Goals Creating a Spending Plan Living Simply Giving Joyfully Managing Debt Taking Loans Getting Banked Preparing for Emergencies Planning for Long-Term Change

We’ll track our progress on this chart over the next weeks. Let’s open in prayer as we begin our time of learning together.

TAS K 1

REVIEW OUR RECENT PRACTICES WITH INCOME AND EXPENSES (5 MINUTES)

1A: Check in with a partner you’ve had from our past weeks together. Take two minutes to discuss: How are you doing: Ø with the expense you committed to eliminate? Ø in tracking your income and expenses? We’ll hear from several of you that would like to share. 1B: As we build confidence and trust in our group, we can better pray for and support each other in times of need—like the early church. Share: What do you remember about them from our last lesson? I appreciated our discussion last time about how we can support each other in this same way. God did not design us to function on our own, but gave us one another as a community. We are relational just like

58


Unit 4: Setting Savings Goals

God is – made in His image to reflect His character. When we put our trust in God, we are part of His family and can depend on each other.

TAS K 2

SHARE OUR OWN EXPERIENCE WITH GOAL SETTING (20 MINUTES)

As we begin to discuss saving, let us consider the story of Joseph from Egypt. Joseph was a man who went through a lot of suffering, even being sold by his own family into slavery! But he had great faith and trust in God, even in captivity, and God did not forget him. During the time of Joseph, the Pharaoh, or King, had a dream. 2A: Lay back in your chairs as I lower the lights. Pretend you are dreaming! Close your eyes and imagine the dream as I tell it to you: Seven cows came up from the Nile River, fat and sleek. After them, seven other cows came up—scrawny and very ugly. The lean, ugly cows ate up the seven fat cows! Then, seven heads of grain, healthy and good, were growing on a single stalk. After them, seven other heads of grain sprouted—thin and scorched by the wind. The thin heads of grain swallowed up the seven healthy, full heads! 2B: After hearing Pharaoh’s dream, listen to how Joseph interprets it. God gave Joseph a special ability to see the meaning. As you listen, think about how this applies to saving and goal setting. Would a volunteer please read? And Joseph said: “God has shown Pharaoh what he is about to do. Seven years of great abundance are coming to the land of Egypt, but seven years of famine will follow them. The famine will be so bad that you won’t even remember the abundant times! So, collect all the food you can these good years that are coming. This food should be stored for the country, so that the country may not be ruined by the seven years of famine.” When the seven years of abundance in Egypt came to an end, the seven years of famine began, just as Joseph had said. When all Egypt began to feel the famine, the people cried to Pharaoh for food. Then Pharaoh told all the Egyptians, “Go to Joseph and do what he tells you.” Joseph had stored up huge quantities of grain, like the sand of the sea. When the famine had spread over the whole country, Joseph opened the storehouses and sold grain to the Egyptians. All the world came to Egypt to buy grain from Joseph, even his own family, because the famine was severe everywhere. (Genesis 41:28-57, author’s paraphrase)

2C: In the large group, discuss: How did Joseph use his abilities to plan ahead, save, or set goals? We’ll hear a variety of voices.

59


Faith & Finances Facilitator Guide

Joseph wisely planned ahead, predicting future needs and setting goals to meet them with a plan of action. Along with setting goals and planning ahead, Joseph used the assets God gave him—his ability as an interpreter and his stores of grain—to support his family and the community. Like our second theme posted on the wall, Joseph used his resources as part of something larger than himself. Saving and planning was not just for his personal gain or security, but was part of God’s work of restoration. 2D: Find a new partner – someone across the room! Consider a time in your own life when you set a goal for the future and fulfilled it. What were the key actions you took to meet your goal? For example, maybe you had to sacrifice time or opportunities. Discuss the key actions with your partner for three minutes. Then, we’ll list some of your ideas on the flipchart entitled: Meeting our Goals. [Suggested if not mentioned: planning ahead, giving up harmful relationships, delaying gratification, asking for help from others, doing research.]

TAS K 3

EXAMINE A STORY ABOUT SETTING LONG AND SHORT-TERM SAVINGS GOALS (15 MINUTES)

Like these experiences we’ve listed, Eva and Isaac need clear, actionable goals if they are going to succeed at saving. They know that saving is essential and that there are no shortcuts. They also know they must do it together. As you mentioned, meeting their goals are going to require sacrifice, discipline, and help. Like all of us, sometimes they struggle just to get by on a day-to-day basis and to make ends meet. Ø From our past sessions, what do you remember about Eva and Isaac—their finances and relationships? 3A: Listen to Eva and Isaac’s story as we continue. This time, let’s act out the story! I need 5 volunteers to role play the story as I tell it: Isaac, Eva, Jessica, the elder, and Eva’s mother. You don’t have to say anything—just show us your best acting skills with gestures! As you watch and listen, note Eva and Isaac’s long and short-term savings goals. EVA AND ISAAC’S SAVINGS GOALS

Eva is exhausted. She’s tired of the cycle that her family is in—she knows that God has invited them to become part of His larger story in restoring all things. Eva is ready to take action. One afternoon, she graciously interrupts Isaac while he’s watching football, asking him if they can talk about savings goals. They laugh, disagree, debate, ponder—and then finally agree that the family needs a savings fund for emergencies. They shake on it: their long-term goal is to build a $500 emergency fund. As Eva and Isaac examine their expense tracking sheets, they decide they can save $25 per month toward this goal.

60


Unit 4: Setting Savings Goals

But, it’s hard to find that $25 a month when other expenses are so high! They really need a lump sum of money to buy that washer and dryer. After she walked home from work the next day, Eva stopped back in at Green n’ Go Payday Loans to see Jessica, the lender. As usual, Jessica was so friendly—and there was always free coffee! But as usual, it sounded too good to be true. Eva tried to be polite as she walked out. She refuses to get the money that way again—it took them all year to pay off that loan last year with the hidden costs. Instead of taking a loan, Isaac suggests they set a short-term goal of saving for a washer and dryer. With laundry expenses at almost $15 per week, a washer and dryer would save money and time in the long run—which would allow them to work toward their long-term goal. After six months their investment in the machines will pay off. Plus, Eva would feel safer not having to go out at night to the laundromat. If the machines were at home, her mother said she would also be delighted to help! Eva’s mother asked around at the church and found an elder she trusts who agreed to sell his good, used set for $60. Eva’s mother introduced the elder to the couple. His set is more expensive than the $50 at Payless Pawn Shop, but Eva knows they are good quality and will make their investment worth it. To reach their long-term goal of having an emergency fund, Isaac and Eva know they must be faithful to their short-term goal of getting a good washer and dryer. They commit to saving $10 per month toward the washer and dryer. The elder agreed to accept the $10 per month from them until the washer and

61


Faith & Finances Facilitator Guide

dryer are paid for. It was a done deal—they shook on it 3 ways! If they stick with it, they’ll have the washer and dryer in six months. Now, Eva and Isaac have a savings plan. This gives Eva even more motivation to cut back on smoking. But she knows she can’t do it alone. She tells Isaac and her mother about her plan to cut down on smoking and asks for their support. They all agree to think about ways to cut costs. Isaac agrees to eat-in for the rest of the month, plus he suggests some ideas about saving energy. That night around the table at dinner, the three of them prayed together about their savings goals. 3B: On the flipchart, let’s write out Eva and Isaac’s long-term goals, short-term goals, and plan for reaching these goals. As I write each category, you call out the savings goal, how long it will take, the total amount, and their plan to reach the goal. EVA AND ISAAC’S SAVINGS GOALS

LONG-TERM GOAL Emergency fund for the family

SHORT-TERM GOAL Used washer and dryer

TOTAL COST $500

TOTAL COST $60

TIME About 2 years (20-24 months)

TIME 6 months

MONTHLY COST $25

WEEKLY COST About $2.50

SHORT-TERM PLAN TO REACH GOAL Commit to develop a savings fund; plan together to invest in washer/dryer

PLAN TO REACH GOAL Found a good quality washer and dryer; cut back on smoking and eating out

3C: Now, in the large group, discuss: Ø What do you like about Eva and Isaac’s savings plan? Ø What challenges might they face? Notice how their short-term goals connect to their long-term goals, enabling them to immediately take small steps—like saving $2.50 per week—that contribute to their long-term goal of protecting the family with an emergency fund. Also, note how working together through their finances is helping to restore relationships in the household. As we work through our own savings goals, think about how working together on finances can help to build and restore relationships with those you love.

62


Unit 4: Setting Savings Goals

TAS K 4

SET A LONG AND SHORT-TERM SAVINGS GOAL (25 MINUTES)

4A: Consider your own savings goals. First, set your long-term goals. Long-term goals are usually one to five years away—these are the big picture goals. For long-term goals, ask yourself: Where do you want to be in five years? Call out some quick examples of possible long-term goals. Next, set short term goals. These short-term goals are things you want to accomplish within the next six months to one year. Usually, short-term goals are steps toward reaching long-term ones. What are some quick examples of possible short-term goals? 4B: Let’s write down our long-term goals first. Before we complete the Long-term Goals worksheet, note the recommendations in your notes entitled SMART Savings Goals:

SMART SAVINGS GOALS Your savings goals should be: Specific—to know what you’re aiming for and why you’re making sacrifices Made to honor God—connect them to your top priorities and His work in the world Accountable—ask someone to check on you or send reminders Realistic—to increase the likelihood of achieving them Time-bound—to track your progress and ensure the goal is accomplished

4C: As I name some examples of long-term goals that are too general, not accountable or realistic, or disconnected from your top priorities, call out how you would change them to become more specific, realistic, accountable, time-bound, and God-honoring. For each goal, we’ll ask: What is wrong with this goal? How would you change it? §

Save $200,000 over the next two years

§

Get more money for emergencies

§

Open my own secret savings fund to get rich

§

Own a brand new BMW within six months

4D: Now, examine the Long-term Goals worksheet in your notes. Let’s read through the example listed in your notes. Let’s say that your long-term goal is to save $4,000 for your son’s two-year technical college tuition. He’s in eighth grade now, so you’ve g0t five years to save. How many months is five years? (60) How much will you have to save every month for 60 months to reach your goal? ($4,000 / 60 = $65) Let’s do the math together.

63


Faith & Finances Facilitator Guide

Now, in the example, what are the two short-term action steps listed to reach this long-term goal? 4E: Take five minutes to list your top two long-term goals on the Long-term Goals worksheet. I am available if you need help. 4F: Examine the long-term goals you have listed. Identify the one that really excites you or is most important. Make this your primary long-term goal. Commit yourself to accomplishing it! Think: How does this goal align with God’s plan to heal my relationships? How does it relate to what I value most? LONG-TERM GOALS3 (1 TO 5 YEARS)

3

LONG-TERM GOAL: I OR WE WILL…

TOTAL COST

Example: We want our son who is in 8th grade to eventually enroll in the 2-year technical college

$4,000 including tuition, books, and fees

TIME FRAME (YEARS AND MONTHS) 5 years/ 60 months

Derived from Nederveld and Chung, Faith & Finances, Session VI, page 7.

64

MONTHLY COST About $67

SHORT-TERM PLAN TO REACH MY GOAL I will talk to my wife and open a special savings account. We will completely pay off an old medical debt of $300 so we can start saving.


Unit 4: Setting Savings Goals

4G: In the large group, share the long-term goal you have selected—why your goal is important, the time frame, the cost, and how you will reach it. We’ll hear from two or three of you. Excellent! Now, let’s brainstorm how you will reach that goal by setting short-term goals. These shortterm goals should help you toward your long-term goal. For example, as written in your notes, once you pay off your old medical debt of $300 as a short-term goal, you can use that money to start working toward your long-term goal of starting a savings fund for your son’s college. Let’s do the math together: If you want to complete this in six months, how many weeks is that? (About 24 weeks) How much will you have to save each week? ($300 / 24 = $12.50) 4H: On the Short-Term Goals chart in your notes, list three short-term goals that will help you reach your long-term goal. Calculate how much you will need to save each week and describe how you will do it. Let me know how I can help you.

TAS K 5

SHARE AND EVALUATE POTENTIAL SAVINGS GOALS (20 MINUTES)

5A: Examine your short-term goals and add them up to see how much you’ve committed to save every week. Is this a realistic amount you’ve set for yourself? You may have to begin by choosing from several good goals. Since there are about four weeks in a month, multiply this amount by four. How much should you commit to save per month? Which goals should you prioritize? Weekly savings of _________( x 4 ) = ____________ Monthly Savings

5B: Look back at your short-term goals and consider: Ø What are the pros and cons of my goals? Are they realistic amounts? Ø Who will hold me accountable when obstacles get in the way? Ø How do my goals contribute to God’s plan to restore my relationships? 5C: Adjust your goals if needed. Each person is welcome to share one short-term goal, including the cost and strategy, in the large group—but only if you’d like to. We’ll evaluate the goals we’ve heard and offer feedback to each other.

65


Faith & Finances Facilitator Guide

SHORT-TERM GOALS4 (WITHIN 6 MONTHS)

SHORT-TERM GOAL: I OR WE WILL… Example: We need to pay off an old medical debt.

TOTAL COST $300

TIME FRAME (MONTHS AND WEEKS) 6 months/ 24 weeks

AMOUNT TO SAVE WEEKLY

IDENTIFY HOW: TIME NEEDED, COST, AND STRATEGY

$12.50 per week

For the next six months, our family will cut back eating out to once a month. I will bring my lunch to work in a brown bag instead of eating at the cafeteria.

5D: Evaluate the short-term savings goals you have heard from others. Give a comment, suggestion, or praise by handing one of these four symbols to someone. Then, we’ll offer feedback to each other for 10 minutes.

4

Derived from Nederveld and Chung, Faith & Finances, Session VI, page 8.

66


Unit 4: Setting Savings Goals

ü Check Mark – for a goal or idea that you affirm as realistic to experience I’ll pass you a check mark, Peter, because I like your goal of________ +

Plus Sign – for a goal or idea that you would add to... I want to offer you a plus. I suggest adding ___________ to your goal

p

Triangle – for a goal or idea that you would change or subtract from I want to offer you a triangle, because I suggest changing ___________

?

Question Mark – for a goal or idea that you have further questions about I have a question about your goal, Mariela, so I pass you this question mark

TAS K 6

COMMIT TO SHARING OUR GOALS AND TO CONTINUE TRACKING OUR INCOME AND SPENDING (5 MINUTES)

This week, let’s go out and practice two things. 6A: First, commit to share your long and short-term savings goals with at least one other person in your life who can support you. This should be a positive person who can help you reach them. Ask them to check in on your progress regularly. Take a few moments to write this person’s name in the box in your notes.

I will share my savings goals with:

6B: Second, continue tracking all of your daily income and expenses on the sheets provided. Next week, each person will examine their daily income and expenses and develop a monthly spending plan. In order to develop this monthly plan, you must bring all of the income and expense tracking sheets that you have filled out over the past several weeks. Also, bring in copies of your receipts, checks, or bills if you can. We’ll keep all of this confidential – you won’t be asked to share it with the large group. Come to our next meeting with as much knowledge and documentation as you can about your own income and expenses. The more you know when you arrive, the better equipped you’ll be to prepare a spending plan that will help you to meet your savings goals. 6C: Before we close, would a volunteer please pray for God to give us courage and discipline in sharing our savings goals and tracking our daily expenses.

67


Faith & Finances Facilitator Guide

MY DAILY INCOME DATE

TOTAL

68

DESCRIPTION

AMOUNT

$


Unit 4: Setting Savings Goals

MY DAILY EXPENSES DATE

TOTAL

DESCRIPTION

AMOUNT

$

Pages 70 - 236 are not included in this preview 69


GLOSSARY Alimony: a monthly amount of money paid to an ex-husband or wife by law after divorce Annual Fee: a yearly amount of money paid to a credit card company for your account Asset: anything that God has given you that has value (e.g. savings account, cash in your wallet, cooking skills, a used car, family relationships) Appreciating: increasing in financial value over time Compound Interest: interest that is paid not only on the original amount but also on the interest money already accumulated; interest paid on the interest Confidential: to be kept secret in speaking and writing; completely private Credit: being able to borrow someone else’s money now to pay for things Credit Report: a free annual record of your borrowing and repaying history that shows you, lenders or employers your past financial practices Debit: connected to your personal bank account, so you’re spending money that you already have instead of borrowing Deductible: the amount of money you will pay from your own pocket before the insurance begins to pay Depreciating: decreasing in financial value over time Emergency Fund: a lump sum of money (ideally $300-$500) that protects you from further debt or asset loss during times of emergency (sickness, accidents, theft) External Obstacle: something that is outside of you and beyond your control IDA (Individual Development Account): a matched savings account that can be used toward the purchase of a house, education, small business equipment, or other asset Income: the sum of all the wages, salaries, and other profits you receive Interest: when you buy something on credit, interest is the fee or rent you have to pay for using the money you borrow Internal Obstacle: something that is inside of you and within your control Investment: putting money into something that you plan and hope will increase in value over time

237


Kingdom of God: the rule of Jesus over all parts of life, culture, and creation that He has already begun and will fully realize in the future Liabilities: financial disadvantages, debts, or other obligations Net Worth: the financial value of everything you own; your total assets minus your total liabilities Pension: a monthly allowance paid to one who is of retirement age or disabled Predatory Lender: lending companies that trap borrowers, imposing unfair and abusive loan terms on them Premium: monthly payment made in exchange for insurance guarantee Reconcile: to re-establish relations with someone or something; to fix or repair a broken relationship or problem Resources: sources of support that you can draw on in time of need (money, assets, property, personal abilities, relationships) Role-play: in a learning environment, to act out a situation in an effort to understand a different point of view or to simulate a real-life experience Social Security: government assistance payments for the elderly or unemployed Tax Refund: a yearly rebate of money from the government to taxpayers, including stimulus credits, taxes withheld, and earned income tax credits Top Priorities: the relationships, ideas, beliefs, and opportunities in life that are most important to you

238


REFERENCE PAGE Bowen, Rita; and Giuffrida, Inger, Your Values. Your Choices. Your Money. Making the Most of Your Finances, Thrivent Financial For Lutherans, 2006. Federal Deposit Insurance Corporation, Money Smart: A Financial Education Program for Adults, FDIC, 2001. Federal Reserve Bank of Dallas, Building Wealth: A Beginner’s Guide to Securing Your Financial Future, 2010. Freedom from Hunger, Budgeting: Using Money Wisely, Financial Education for the Poor Project, Washington D.C., 2006. Freedom from Hunger, Savings: You Can Do It! Technical Learning Conversations, 2008. Global Learning Partners, 4 Steps for Learning that Lasts, 2012. Microfinance Opportunities, Bank Services: Know Your Options, 2005. National Endowment for Financial Education, Finding Paths to Prosperity, 2001. Nederveld and Chung, Faith & Finances: Helping People Manage Their Money, CRC Publications, Grand Rapids, MI, 2000. Pretty, Jules; Guijt, Irene; Thompson; John and Scoones, Ian; Participatory Learning and Action: A Trainer’s Guide, International Institute for Environment and Development, London, 1995. Tennessee Saves, You Can Build Wealth, University of Tennessee Extension, 2011. Towner and Tofilon, Freed-Up Financial Living: How to Get There With Biblical Principles, Willow Creek Association, 2008.

239


Faith & Finances Facilitator Guide