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God, Money and You (Part 2)

In Hot Pursuit

Last time we talked about why so many us misuse the financial resources God blesses us with. This time it's all about the how — that is, how to actively pursue wise money management.

Goodness knows I could have used this kind of advice during my own college days. I certainly didn't handle money spectacularly well back then. My checking account was never, ever balanced. And if you're OK with it, I'd really rather not talk about the time that utility company hit man came to shut off the electricity to the duplex I was living in because I forgot to pay the bill.¹ To be honest, I'm really just a recently reformed money mis-manager.

But enough about me.

Without further adieu, here are some handy-dandy money management tips tailored specifically to you, the college student.

To the Degree That You Can, Live on a Budget

Making a budget ("spending plan," whatever) isn't the easiest thing to do when you don't have a steady income, but you can make it work. Chances are, each semester you're living on some combination of student loans and your parents' beneficence. From that lump sum, first subtract out one-time or semester-ly expenses (e.g., books and tuition, or that epic road trip you're planning for fall break). Then, figure out the number of months you'll have to live off what's left, and divide the remaining amount accordingly.

Next, make a list of everything — and I mean everything — you'll be paying for each month. That means things like the electricity and cable bills, groceries, meals out and all forms of entertainment (say, a movie or the occasional album from iTunes). Make sure to include debts you're paying, too, like a car payment. Oh, and don't forget clothes.

As completely uncool as living on a budget sounds, it actually makes saying no a lot easier. It's like back in high school when your parents let themselves be your excuse for not going to that likely-to-be-pretty-shady party you didn't want to go to. Your budget's your excuse; you don't have to take the heat. And that's why I sometimes like to call my budget Clarence. When Clarence reminds me that I don't have the money to go out to eat for the umpteenth time this month, I quietly bow out. My friends don't like Clarence much. But Clarence and I are OK with that.

That T-shirt May Be Free, but You'll Probably Pay for It Later

I'm not suggesting you avoid using a credit card altogether, but do be wary. If you're going to apply for that handy piece of plastic, do it intentionally — not on a whim, out in front of the student union, with the prospect of a free T-shirt enticing you.

We've talked about the subject of wise credit card use before here on TrueU (and by "we" I mean Lauren Winner and Jason Boyett) but we just can't be reminded enough that credit cards can get us into loads of trouble if we aren't careful with them. I do use one regularly, and did so throughout college. But here's my suggestion (and it's scandalous!): Use a credit card only for purchases that fit into your budget.

And here's another gem, a piece of advice from my dad (well, it was more of a command, back when I was 18 and applying for my first credit card): The first month you can't fully pay off the bill you've racked up, cut the card up and throw it in the trash. And by "your bill" I don't mean that oh-so-enticing minimum payment the credit company allows you to pay. Your minimum payment should be the amount you've spent on the card that month. Believe it or not, the Bible has something to say about your outstanding credit card balance, and it comes from Romans 13:7 — "Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue …" (NIV).

So no, credit cards aren't evil. But you do have to be intentional about how you use them.

Get a Job

As I said back when I was on my get-yourself-on-a-budget soapbox, it's likely you have parents or loans covering the base costs of your education — tuition, rent or room and board, text books and so on. A job, then, besides paying for more of your tuition, can mean cash in your pocket. For all the self-restraint I've been pushing in this article, I do think it's important to have a little fun while you're in school. It's also nice not to feel like a complete mooch, especially when it comes to purchasing that concert ticket — something that isn't exactly a need.

And a nice corollary to having a job is the fact that you're pretty much forced to manage your time more effectively. I think I actually used my time better when I was working 12 hours per week my senior year simply because I had to. Procrastinating just wasn't an option.

Avoid Impulse Buys and Recreational Shopping

I'm guessing your mama told you this stuff at some point in time, but like all other things financial, it bears repeating. We all have our weaknesses. Mine happen to be outdoor gear, books, CDs and gasoline — for those for-no-particular-reason Saturday roadtrips.

The worst kind of impulse purchases are the ones we make while trying to assuage our emotions. First, we're likely to overspend. And secondly, like any temporary emotional salve, it suppresses the real reasons for our existential funk. After that breakup or a bad test grade, try leaving your wallet at home.

And you know, it's interesting to me — in a self-condemning kind of way — that in our society we have enough money (and credit) at our disposal that we have the option to shop … just for fun. I'm not talking about buying things you'll have fun with, like … I don't know … an iPod. I mean going shopping — engaging in the act itself — just for recreation. When we do this (and guys, we do it too — we just usually buy bigger ticket items) we often end up purchasing things we don't need.

Live Generously

Remember the parable of the widow's mite², or the time Jesus fed 5,000 people with a boy's five loaves of bread and two fish?³ Clearly, giving isn't about how much we give, but the attitude of our hearts. Also, we shouldn't be discouraged to give because we can't give much. God can do more with a little bit of time or money than we could ever imagine.

So what can you do now, before you ever have a "real" job, to cultivate a life of generosity?

For starters, you can give to your church. Ask God to guide you in how much you should give. I would highly recommend you tithe (i.e., give a tenth) of what you earn at your part-time job to your local church.⁴ Or, for those of you who like a challenge: how about tithing on your student loans? The government considers them income — should you?

And college students are nothing if not resourceful. So harness that creativity for good and think of cool ways to give your money away. Give to the local homeless shelter. Pool your resources and, among you and several of your friends, sponsor a child through Compassion International. Make it personal by supporting a friend who works for a campus ministry. Or, do a little research and find out the sorts of organizations that are doing God's work throughout the world, ones that match your priorities, and give to them.

Also, when it comes to giving, remember that old phrase, "Time is money." You may not have much money to give, but your time can be just as valuable for organizations that don't have the budget to hire extra staff. Sometimes your presence is more helpful than your money.

So, you may not be able to give much now, but your college years are a great time to get into the habit of giving. Maybe it feels like a squeeze, but you'll learn the joy of being generous with God's resources.

On Your Way

C O F F E E  S H O P

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What are some creative ways to honor God with your money?

Join the discussion!

Is it easy to manage your money well — not to mention biblically — while you're in college? No, it's not. Our materialistic culture and our own naïveté work against us. But with these tips in hand, and a mind for what Christ would have you do with the money He's given you, you're on your way.