They report their financial habits, mistakes, and makeovers

Do servant leaders spend sleepless nights over household finances?

In this time of economic upheaval across our country – which is affecting people in our churches and communities – we asked pastors what their personal financial practices were. Fifty pastors coast-to-coast responded to a Teleios questionnaire on their personal money habits, sharing their mistakes and makeovers.

Financial regrets
The most common financial regret in these pastoral households concerned credit card misuse or abuse – especially in their “younger years.” Ten pastors named credit card issues as their most significant misstep in household finances.

The second most-mentioned money problem appears to be a vocational hazard. A Church of the Brethren pastor said she has been too generous at times when it comes to financially helping people in need. And, a Pennsylvania pastor lamented he personally helped someone with a large purchase only to find later he was liable for the remaining payments.

Other circumstances identified by the pastors as personal finance slip ups included:

• Starting late with a savings plan.
• Always borrowing money to buy cars.
• Lack of attention to checkbook balancing.
• Buying “too much” house.
• Lack of attention to detail in financing a home.
• Leasing a car.
• Risky investments.
• Buying “stuff we don’t need.”
• Not anticipating a downturn in the economy.

Positive change
These pastors haven’t been sitting still! The Teleios questionnaire asked the pastors to name one action or change that led to a positive turn in household finances. Eliminating credit card debt and closing credit card accounts was at the top of their list. Most addressed the credit card debt by accelerating payments or creating a “snowball effect” by adding extra payments to other cards as they eliminated smaller balances.

The pastors mentioned many other steps that brought positive change for their household finances, including:

• Using financial education resources from advisors or organizations. “Meeting with independent financial planners, consulting with MMA counselors and purchasing products,” was positive for Virginia pastor, Lee Martin.
• Being accountable to one’s spouse. This was crucial for Marvin Claassen a Missionary Church pastor in Princeton, Ill. “We began to account for what we spent with each other, and ask if (the purchase) is necessary.”
• Beginning tithing or firstfruits giving. “Living debt-free and giving in excess of 20 percent to Christian ministry,” remains a financial management key for John Zuck, a Brethren in Christ minister from Ohio.
• Establishing an emergency fund. “We have a set dollar amount (which is) deducted from our checkbook (and placed in) to an emergency fund,” says Ken Hepner, Chambersburg, Pa.
• Using a budget/envelope system. Dennis Fast, Mennonite Brethren pastor from Reedley, Calif., found a written plan and the envelope system to be a positive move in his household.
• Having a thrifty spouse (and family). Harold Miller, Corning, N.Y., acknowledges how money is saved by home-based skills. Harold Myers at Harrisonburg (Va.) United Brethren in Christ Church remembers, “When our children were in third grade and above, we would make a budget on New Year’s Day . . . and show it to the children. They saw where large chunks of our income went . . . and it helped them to be content with our austere life . . . and they had savings plans, paper routes and jobs as teens.”
• Moving to cash-only payments for purchases brought positive change for Dale Ivy, Calico Rock Mennonite Fellowship, Calico Rock, Ark.
• Using God’s Managers materials: David Sutter, South Bend, Ind., remembers using and applying principles from these materials more than 25 years ago.
• Systematic savings plan: “. . . saving during leaner times and more prosperous times is essential (whether in) a CD (certificate of deposit), mutual fund or simple savings account,” emphasized Tim Schultz from Ohio.

Financial advice
When we asked pastors where they found financial advice, almost one half of the pastors said they work with an MMA advisor. A variety of sources were mentioned including:

• MMA advisors: 23
• Crown Ministries: 10
• Larry Burkett: 7
• Dave Ramsey: 6
• Ron Blue: 1
• Secular advisors or resources: 13 (This category included banks, agricultural services, congregational advisors, business magazines, and Web sites.)

Several pastors worked with two or more advisors.

Division of labor
Twenty-nine of the pastors are the primary person in the household to pay bills while 10 rely upon spouses and 10 share the task with their spouses. One person is a member of a community that has a common purse.

Watching expenses
Thirty-two pastors indicated they do not have a written budget but ‘watch carefully’ over expenses and income. The remainder of the pastors uses a written budget, spending plan or envelope system to manage the household.

Savings tools
The pastors used a wide variety of savings tools, but a retirement savings account was the most common tool, mentioned by 47 pastors. Ten pastors have a children’s education fund. Other savings tools noted:

• Health savings accounts
• Real estate investment
• Christmas and vacation clubs
• Pre-paying or “making payments to myself.” This is a favorite of Stephan Crane, Mennonite Church USA pastor in Atglen, Pa, who said, “I make car payments to myself and then purchase a car with cash when the fund is sufficient.”

About those sleepless nights . . . 39 pastors felt their household finances were in reasonably good shape, agreeing to the statement: “I sleep well at night.” Eleven others noted tensions, stress, and concerns about their household finances – although two of those pastors noted, “I still sleep at night, anyway!”

Age of the 50 pastors

• Under 40: 9
• 40 – 49: 10
• 50 – 59: 23
• 60 – 69: 6
• 70 +: 2

Note: This article is based on the responses of 50 pastors who generously shared their personal finance experiences with other pastors who read Teleios newsletter. However, their collective responses do not represent a scientific cross-section of the financial practices of Anabaptist-Mennonite pastors who MMA serves.