Finances and Family Formation

There is a passage in 1st Timothy 6 that can help us to see what is really important in God's eyes; we can read these words:
6 Now godliness with contentment is great gain.
7 For we brought nothing into this world, and it is certain we can carry nothing out.
8 And having food and clothing, with these we shall be content.
9 But those who desire to be rich fall into temptation and a snare, and into many foolish and harmful lusts which drown men in destruction and perdition.
10 For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.

Our view toward money, as it's been said, is an indicator of our view of God - if we are selfish with our possessions or look to our possessions to make us happy and fulfilled, we will miss the mark. But, if we regard our money as a tool from God, that He ultimately possesses, then we will use those finances wisely and be generous with what He has given to us.  On this earth, it is important to be able to buy and sell, but we always have to recognize that He is our ultimate source.

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In the book of Ecclesiastes, Solomon, who had acquired quite a bit of wealth in his life, recognized that material wealth is not the key to inner happiness. Ecclesiastes chapter 5 states:
10 He who loves silver will not be satisfied with silver; Nor he who loves abundance, with increase. This also is vanity.
11 When goods increase, They increase who eat them; So what profit have the owners Except to see them with their eyes?
12 The sleep of a laboring man is sweet, Whether he eats little or much; But the abundance of the rich will not permit him to sleep.
13 There is a severe evil which I have seen under the sun: Riches kept for their owner to his hurt.

The area of finances can place enormous pressure on families, and in these days of elevated inflation and other financial woes, it's important that individual Christians and their families gear up and apply God's principles to money management.

On Focus on the Family's Daily Citizen website, a former Meeting House guest, Zachary Mettler, provided some analysis on how family cohesiveness is affected by financial factors. He analyzes the Cost-of-Thriving Index (COTI), which "was designed by the nonprofit organization American Compass."  Mettler writes:

COTI measures the number of weeks the typical worker must work in order to cover the major costs for a family of four in middle-class America: Food, Housing, Health Care, Transportation and Higher Education.

According to COTI, in 1985, the typical American worker had to work nearly 40 weeks per year to cover the basic costs of these five categories. Costs totaled $17,586 whereas the average male working full-time earned $23,036.

But in 2022, COTI was 62.1, meaning the typical worker had to work 10 more weeks than there are in a year in order to afford the basics of a middle-class life. Whereas the average man working full time earns $63,388 annually, costs total $75,732.

So, since 1985 through last year, the cost differential has swung from over a 5,000-dollar surplus to more than 12,000-dollar deficit. 

Mettler also points out:

In addition to the COTI, American Compass has also released the results of their 2023 American Affordability Survey which found that “rising inequality, stagnating wages, and pressure for a household to have two incomes have all eroded the typical working family’s well-being.”

The survey found that most Americans want to be able to support their family on one income. Over 70% of Americans see that ability as “essential” or “important” to being in the middle class.

Conditions described as "vitally important" include:

* "Affording comprehensive health insurance" - 86% said this
* 74% said, "Owning your own home" and
* "Saving enough to pay for your children to attend college" was rated as "vitally important" by 69% of respondents.

The article quotes from Oren Cass, executive director and founder of American Compass; referring to this and other data, it says, "According to Cass, all this data has a great impact on falling family formation in the United States." He is quoted as saying: “Raising a family is in part an economic choice that has a lot of economic consequences..." The article says that:

He noted that it’s a compelling choice when individuals can get married, have children, and have the option to live off one income. “But that package is not really on offer in the market anymore,” he added.

“We shouldn’t be surprised, though we should be extremely concerned, that people are responding the way they are, by putting off marriage, by not getting married, by not having kids, by struggling to maintain families intact,” Cass said.

The organization, according to the Daily Citizen article, favors a tax credit, described as, "The Family Income Supplemental Credit, which would provide a monthly supplement paid to working families to the tune of $800 per month per child. The credit would also incentivize marriage, adding in a 20% marriage bonus for families."

That certainly sounds like a reversal or at least some sort of relief for married couples who find that they are paying higher taxes filing jointly than they would filing separately.  A recent CNBC.com story said:

If you got married in 2022, you can add “tax return” to the list of things you’ll now be sharing.

For some newlyweds, this is going to mean a bigger tax bill due to a so-called “marriage tax penalty.” It can happen when tax-bracket thresholds, deductions and credits are not double the amount allowed for single filers — and it can hurt both high- and low-income households.

“The penalty can be as high as 12% of a married couple’s income,” said Garrett Watson, a senior policy analyst at the Tax Foundation.

Well, that certainly doesn't sound like a positive contributor to family formation and stability.  Our institutions, including government, should be friendly to families, recognizing that solid families contribute to a more stable society.  The Bible is clear on the sanctity of marriage and offers direction in raising children according to these sound principles.  Fractured families lead to broken lives, and we see the ill effects of family structures in decline in various trends.

Recognizing the financial landscape that the Daily Citizen pointed out, we can also be devoted to living according to God's financial principles.  We should surrender our financial decisions to the Lord, be communicative as spouses about our decisions regarding money.  And, at the cornerstone of a Biblical approach to finances is the concept of generosity - when we realize that all our resources are His and recognize our responsibility to be good stewards, it makes a dramatic shift in the way we live.