Financial Discipleship for Families With Brian Holtz

Faith & Finance

“Train up a child in the way he should go; even when he is old he will not depart from it.” Proverbs 22:6

Teaching our children how to manage God’s money is vital to raising them. But how can parents do this well? Brian Holtz will share some great insights today.

Brian Holtz is the Chief Operating Officer at Compass Financial Ministry and the author of Financial Discipleship for Families: Intentionally Raising Faithful Children.

MVP Parenting: Building Financial Wisdom in the Next Generation

Introducing MVP Parenting, a concept foundational for nurturing financial wisdom and spiritual growth in our children. Howard Dayton defines MVP as Modeling, Verbal Instruction, and Practical Opportunities. This approach helps parents effectively teach their kids crucial life skills and values.

Modeling: Leading by Example

As parents, our actions speak louder than words. Modeling means demonstrating behaviors that our children can observe and learn from. If your child wants to learn how to pray, they need to see you praying, not just hear about it. Children are always watching and absorbing our behaviors, whether intentional or not. They learn how we handle money, attitudes, and financial habits. Therefore, it's essential to model the right behavior visibly.

Verbal Instruction: Explaining the Why

Providing verbal instruction involves explaining actions in a way that children can understand. For instance, after praying or reading the Bible, explain to your children why you do it. Without explanation, they might create their own reasons, which could be far from the truth. Similarly, when giving money at church, explain why you do it. This helps them understand the purpose behind your actions and prevents misunderstandings.

Practical Opportunities: Hands-On Learning

Practical opportunities invite children to engage and try things for themselves. It's not enough for them to see and understand; they must practice under supervision. For example, involve them in simple financial tasks appropriate for their age, allowing them to apply what they've observed and learned.

Implementing MVP Parenting with Clients

This MVP approach is not limited to parenting young children; it works with adult children and even in professional settings. When working with clients, encourage them to document their experiences and prepare their wealth for the next generation. Challenge them to apply the MVP principles to teach their children financial stewardship.

In a corporate setting, this might look like mentoring a junior team member by letting them observe your presentations, explaining the outcomes, and gradually involving them in the process. Similarly, parents can apply these principles to raise financially wise children by providing a vision for the family’s wealth and decisions.

The Importance of Family Vision

A clear family vision is crucial. It defines why you exist, why the wealth has been entrusted to you, and why you make certain decisions. Core values and a family vision ensure that everyone understands the purpose behind their actions. Just like a book's value depends on its purpose, a family's success in stewardship depends on defining what that means for them.

By integrating these principles, families can nurture financial wisdom and spiritual growth, ensuring that the next generation is well-prepared to be good stewards of their resources.

On Today’s Program, Rob Answers Listener Questions:

• My wife and I received an inherited IRA from her father. We've been taking the required minimum distributions since he passed away, but now we've been told we must liquidate the entire account, which is around $100,000, by next year. We don't need to take all the money out since we don't use it for living expenses. Is there another option besides liquidating the whole thing?
• I’m looking for guidance on optimizing my retirement plan as I prepare to retire next quarter at age 61. I'll have significant assets and want to ensure I use them efficiently. I'm wondering if I should work with a CPA or a financial planner and if you could provide any suggestions on who might be a good fit given that I want to consider the interaction between required minimum distributions, Roth conversions, donor-advised funds, and when to start taking Social Security benefits. I have a lot of factors to consider when planning my retirement, and I could use help putting together a comprehensive plan.
• Should I use a home equity line of credit to purchase a new vehicle? Our mortgage has been paid off for a while, but the interest rates on new cars are so high. I wonder if using some of the equity in our home instead through a HELOC would be better. We'd prefer to buy a new car to avoid any potential mechanical issues from a used vehicle. What are your thoughts on using a HELOC versus financing through an auto loan?
• I'm 62 and no longer working, while my husband is 63 and plans to work until 65 or 67. We had always planned to delay taking benefits as long as possible, but I read something recently about how I could potentially take just my own benefit now at 62. Then, once my husband retires and starts collecting his, my benefit would convert to receiving the spousal benefit instead. I'm still confused about exactly how the spousal benefit works, though, and I was hoping you could help explain it.

Resources Mentioned:

• Financial Discipleship for Families: Intentionally Raising Faithful Children by Brian C. Holtz
• Compass Financial Ministry
• Bankrate.com
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

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