The main thing some youth ministry workers say about money is that they don’t have enough.
According to the latest salary survey in Group Magazine, the average base salary for a U.S. youth worker is $32,500. That’s less than the average substance-abuse counselor earns, but it’s more than the average preschool teacher or library technician takes home. And it’s way more than the estimated 16 million Americans living below the poverty line have.
In Fall 2007, we asked readers of the YouthWorker eJournal how they felt about what they earned. Many said: “I don’t get paid a lot, but I’m in this for the ministry, not the money; so I am satisfied with what I get paid.” But some said: “I don’t get paid enough, and that causes problems for me and my family.”
Dissatisfaction is normal in a country whose Declaration of Independence honors “the pursuit of happiness.” But even many wealthy Americans feel they don’t have enough. “A million dollars isn’t what it used to be,” moaned one of America’s 7.5 million millionaires.
Some of you may wish you had such problems! But our challenges are to be faithful with what we have and to teach the kids we work with to do the same. We hope some of the articles in this section will help you meet these challenges.
The love of money may be a root of all evil, but Dave Ramsey and Humberto Cruz say it sure comes in handy sometimes.
Ramsey and Cruz are two of the nation’s best-known experts in personal finance. Ramsey, a syndicated radio personality and best-selling author, believes the secret to financial security is staying out of debt.
A Christian, Ramsey caused a stir when he blasted Family Christian Stores for giving away copies of his book The Money Answer Book if they applied for a store credit card. Ramsey’s Web site, www.daveramsey.com, doesn’t even accept credit cards.
Cruz, a syndicated newspaper columnist for Tribune Media Services, earned the nickname “Robosaver” by squirreling away $3 million on a middle-class income. Cruz spent 30 years as a writer and editor for the South Florida Sun-Sentinel before retiring from full-time journalism in 2000. He still writes his popular column, “The Savings Game,” for newspapers nationwide.
The wisdom these two writers share should help both youth workers and the kids they serve.
YouthWorker Journal: If you could give youth one financial goal for their lives, what would it be?
Dave Ramsey: It’s simple: If you start making smart choices now—and avoid stupid ones—you’ll reap the benefit of wise financial decisions 30 years from now. Live like no one else now, so later you can live like no one else.
Humberto Cruz: There are three concepts young people should grasp. How much does it cost to get the money you make? What is the tradeoff you’re making when you spend now versus when you save for later? And they should understand the cost of credit.
YWJ: Does the Christian church—and, by extension, American culture as a whole—encourage fiscal responsibility, or prohibit it?
Cruz: There are many groups that have dedicated themselves to providing financial education for students, starting as early as the elementary grades. But you do have the powerful forces of marketing and advertising, whose goal, of course, is to sell products. I also think that one of the effects of technology is that everything is instantaneous. You can go to the Internet and communicate instantly with people around the world. And that is fantastic, but it creates an expectation of instant “do it now, don’t wait.” And that’s where we need to fight the battle.
Ramsey: Most normal people, Christian or no, are just plain broke because they are in debt, up to their eyeballs. The Bible says, “The borrower is servant to the lender.” If you’re in debt then you’re a slave, in the sense that you do not have the freedom to use your money to do what God may be calling you to do.
YWJ: Youth workers and youth pastors aren’t getting rich doing what they do. Can they really get ahead on their meager income?
Ramsey: Unfortunately, the word “budget” has gotten a bum rap. It is basically just a plan. When you budget, you’re spending on paper, on purpose, before the month begins. Many people view a budget as a straight jacket that keeps them constrained. However, when you see that a budget is just spending your money with intention, you’ll actually experience more freedom than before.
Cruz: I have a lot of experience not having money. We came to the U.S. in 1960, I did not know English and my parents left everything behind. They came here with exactly $300. It took several months of savings just to buy a mattress. No matter how little you make, though, it’s always possible to set a goal and set at least 5 percent of your money aside. Some people say, “How can I save when I need all my money to live on?” If you cannot live on 100 percent of your income, you also cannot live on 95 percent—so you might as well save the five [percent].
YWJ: Let’s talk about young people and some of the common financial pitfalls they encounter. How would you recommend teens and young adults deal with, say, student loans?
Ramsey: If you want to make sure your college years are pleasant, you’ll need to avoid student loans. The average college graduate, in 2002, walked across the platform with $23,000 in debt before they get their first job! That’s a terrible way to begin a career. To avoid loans, start with grants and scholarships. Secondly, work part-time as needed. Third, attend a local, affordable college first to get the first couple of years of required classes over with, then transfer to the school of your dreams—if you can pay cash.
Cruz: With the higher costs of college these days, it is very difficult for many students to afford school without either some parental help or borrowing. I do not consider myself an expert in this area, but there are many sources on the Web that can help you. I also think that parents of students should have a discussion about how much a student should be expected to contribute to a college education. Sometimes parents may deprive themselves of money that they should be saving for their own retirement, and I think that’s wrong to a certain extent.
YWJ: What about cars?
Ramsey: Now, make no mistake, I like cars. I have a couple of very nice ones—but I paid cash for them and bought them when they were around two years old, after some other lutz took the tail-kicking in depreciation. Cars drop over 40 percent in value in their first two years.
Cruz: You need to determine whether you really need a car. Second, if you need a car, what kind of car do you need and for how long do you need it? Third, what are the options you do not need in the car? What you do not want to do is buy so much car that it limits your ability to do other things. It’s a necessity, not a luxury, at this point in their lives. And keep in mind the cost of the car is more than the car itself. How about insurance? How about maintenance? How about repairs from time to time?
YWJ: Do you have any thoughts on housing?
Cruz: If you’re a college student, I’ve found that many times housing on campus is a pretty good deal, particularly if you get roommates. You have to ask yourself, Am I willing to live with a roommate? Am I willing to live with other people so we share the expenses?
YWJ: What about renting versus buying?
Cruz: When you’re renting, you’re obviously not able to accumulate any kind of equity, and you’re not building up any kind of an asset base. But focus on the basics now. This is not the time to be splurging.
Ramsey: It’s OK to rent—don’t buy too soon. It’s only better to buy if you are out of debt and have an emergency fund. It is better to own over the long term only as a universal statement. That doesn’t mean go out and buy when you aren’t ready.
YWJ: It seems like young people waste a lot of money on things they don’t need, like going to Starbucks every day or buying cool ring tones. How can they afford this trap?
Ramsey: All people, no matter what their age, throw their money away on all sorts of stuff if they don’t plan. If you have cash and it’s in the budget, get some stuff.
Cruz: I’m a firm believer that every person needs to decide for themselves what is absolutely necessary and what gives them pleasure—and understand that if they get one thing, there will be something else they cannot get. If somebody goes to Starbucks and gets a tremendous amount of satisfaction out of it, that is fine—as long as they say, “then I may not be able to do something else.” On the other hand, if they’re going to Starbucks, if they’re getting ring tones, if they’re going out to eat every other day and then they go into credit card debt, then it’s a problem.
YWJ: Which is a great segue to talk about a major bugaboo for today’s young consumer: credit cards.
Cruz: One has to understand that credit cards can be extremely beneficial if used correctly. In fact, it’s almost a necessary financial tool. But I would recommend students to ask for smaller credit lines to begin with. Keep track of what you spend; and never, ever, ever use your credit card without first seeing if you can pay the entire amount out of your checking account.
Ramsey: There is no positive side to credit card use. You will spend more if you use credit cards. It doesn’t matter if you have discipline, because you don’t! By paying the bills on time, you are not beating the system. You are falling for a lie. There is not one single place in Scripture where God uses debt to bless His people.
YWJ: But what about marriage? Can that be a financial curse, too? Or is it more of a blessing?
Cruz: I’ve seen many, many studies that show people with long, stable marriages are far more financially successful than either single people or people who go through divorces. I don’t think you should marry somebody because you’re financially compatible, but it’s absolutely essential that you discuss finances with the person you’re planning to marry. These issues can create a lot of tension later on.
Ramsey: The reason money is the No. 1 thing we fight about is because it’s a struggle over power, and we are selfish people. How do we handle this? First, when you get married, you need to decide that the person you are marrying is most important to you. Secondly, you can’t be a liar. Integrity is a basic element in any quality relationship. If you think that hiding money from your spouse is being “safe,” you are being stupid.
YWJ: Do you have one tip to help youth get out of financial trouble?
Ramsey: Create a budget. Have a plan and tell your money where to go. You have to be intentional about your money, just like you do with your life.
Cruz: I’m going to go back to what I said at first: Know where your money’s coming from and know where it’s going. Make it a game. Over the next 30 days, track everything you receive and everything you spend, and see where it is your money went. Most people who do this had absolutely no idea where their money was going.
