Does Religion Affect Finances?

[Ramose]

We are currently looking for a new church, so we don't have a church to give our tithes right now. Until we join a new church, we decided it would be best to give our tithe money to other Christian organizations.

Thanks for the information. Can I ask why you need to find a new church?

[Mjenn]

There are many theories that build upon this idea, the most well-known perhaps being the idea of the Protestant Work Ethic originally described by Max Weber, a social theorist. But this describes a period of history at the turn of the 20th century, so hard to say how relevant it is today - many social theorists do use this as an observation point to describe social and economic states. The idea with the Protestant work ethic -in over simplified form - is that a product of being raised in a protestant environment is that you consider it important to be able to take care of you and yours, but not aim too high, since your lot in life is the one you are living. You are to provide for your family, their needs and earn your living and work your way up with sweat and hard work. Being born to a life of luxury does not have much merit since you do not earn it.

The idea is that capitalism and protestantism go hand in hand and nurture each other. I should add that I am not a Protestant - just spent a lot of time studying social theory.

[jpg7n16]

Some examples I thought of are:
Somebody who continues to bury themselves in debt because they believe their god will get them out of it.

Biblically speaking at least, the Bible teaches there are consequences for your actions.

Do not be deceived: God is not mocked, for whatever one sows, that will he also reap.
-Galatians 6:7

Could it just be that the people who take the advice were already good at managing money? In another thread about how you learned finance, nobody said they learned from the church or religion. Here is the thread; How Did You Learn About Personal Finance?.

True. You shouldn't expect to go to church on Sunday and expect to hear a sermon on stocks vs bonds and appropriate asset allocation. The church is primarily concerned with more important things.

Having said that, many people learned about managing their finances through Dave Ramsey. Dave does a lot of presentations through churches, has many Financial Peace classes taught at local churches, and shares a lot of beliefs w/ Larry Burkett-- the guy who started Crown Financial.

Crown Financial Ministries - Helping you Find Truth, Hope, Transformation

My point is that there are definitely outreach groups through the church who help teach on financial concepts -- though that is not the main purpose of the church.

What I'm trying to say is, would you have been good at managing your money without the teachings from the church.

That depends on how you define "good at managing your money." Managing it for what?

Managing what God gave you correctly?
Managing it for the benefit of others?
Managing it for the Kingdom of God?
Managing it to provide for your family?
Managing it to stay out of debt?
Managing to stay on pace for retirement?

Your definition of what it means to manage your money well may not be someone else's. Some of those definitions are strongly affected by what you learn at church - though not directly taught.

I saw tithing was discussed. How does it work? Is it always 10%? Do you go into church and give the money, or can you set it up so it is deducted from your pay automatically?

As it's traditionally taught, a tithe is 10%. Those who practice traditional tithing give 10%. But you can always practice charitable giving, which has no limit on what percentage to give (high or low).

Depending on your church, any method is possible. The method of actually transferring the money is not important. I personally have an online billpay at my bank that I use to send the check to my church. Other people drop it off while they're there. I've heard of other churches where you can donate online, just like you would with the Red Cross, PETA or other charity.

[Ramose]

Hmm, thanks for the information jpg7n16.

Managing it for the Kingdom of God?

I don't know what you mean by that one. I do agree with your point that definitions could be different though.

Assume I mean being able to steadily grow your overall financial wealth.

Your definition of what it means to manage your money well may not be someone else's. Some of those definitions are strongly affected by what you learn at church - though not directly taught.

So would you say that people who don't attend church are less likely to manage their money well?

[dawnwes]

We grew up in VERY different circles. I grew up in a strongly Christian family where our faith was the most important thing to us. Most people we knew were highly educated. My father is a doctor as are two of his brothers. The other siblings are college or seminary professors. His mother was a nurse with a 4 year degree.

Most of the people we knew were highly educated AND "religious."

In our circles we also were very cautious with spending. The Bible is very clear about being good stewards of our money and resources and has over 2200 references to money.

Those who spend today in hopes that a god will honor their spending don't follow the teachings of the Bible.

Dawn

Growing up I would have said yes, because I saw a lot of religious/uneducated/broke people. & educated/nonreligious/wealthy people. So is just the stereotype I formed based on what I witnessed.

As an adult, I don't think it is so black and white. You would be amazed at the insane amount of giving that religious people do (I have had several clients donate something like 50% of their money though they couldn't afford to pay their basic bills - rent, groceries, etc.). At the end of the day it comes down to money sense. More educated people who are not feeling that extra pressure/guilt from their church are probably not going to give to the point of bankruptcy and poverty. The less educated seem to fall for that more, BUT also are not making bigger wages and don't have the financial education. I suppose there is no doubt that churches put financial pressure on their congregations, all of that said. (I have never seen anyone give that kind of money to non-profits aside from churches - it's definitely a church/pressure thing - and I am talking well above traditional 10% tithing).

As an atheist, the idea of getting into debt because there are no consequences, is just silly. Atheists tend to focus on the here and the now. There are plenty of negative consequences in the here and now when it comes to debt. On the flip side, I know plenty of atheists who are in debt up to their eyeballs. Why? Because they have no financial education. Plain and simple.

[jpg7n16]

I don't know what you mean by that one.

Managing your money in a way to further the growth of the church, through missionary donations, paying the cost of personal mission trips, church expansion giving, funding outreach programs, etc.

If one of your primary goals is to manage your wealth in such a way that you further the growth of the church, that will definitely be impacted by your religious views.

I would say of all aspects of finance, that estate planning is the area most impacted by your religious view. There your religious view will play a big factor in your decision making. (ie. A Christian is much more likely to leave a portion of his estate to the church than an atheist would be, etc.)

I do agree with your point that definitions could be different though.

Assume I mean being able to steadily grow your overall financial wealth.

So would you say that people who don't attend church are less likely to manage their money well?

Based on your definition, not at all. The average church goer and the average non-church goer are likely to grow their overall financial wealth roughly the same. I don't think there would be much difference between the two.

You can never go to church and learn to grow your overall financial wealth just fine. And I certainly know of many people who attend the church who are completely terrible and growing their overall financial wealth. And vice versa.

I believe the purpose of the church is to provide spiritual guidance, not financial guidance.

[phantom]

Thanks for the information. Can I ask why you need to find a new church?

The denomination to which our old church belonged changed some of their teachings, and we did not agree with the changes. We really liked our local church community, so we stuck around while the church decided whether or not they would leave the denomination. When the church finally decided they were definitely not leaving the denomination, we decided that it was time to find a new church to join.

[Ramose]

Okay, from what I have gathered so far, religion does affect your financial decisions but does not necessarily mean that your decisions will be better (some people are naturally good with money). Additionally, some churches invite speakers to educate their congregation (is that the right word?) on good money management strategies.

Is that correct?

[thesimplemoneyblog]

For those people who choose to tithe, religion most certainly does affect finances.

Religion can certainly impact finances. Tithing can be a significant expense for many people. It can also be regarded as a necessity (and not a want) in the eyes of many, so it may be a last resort of expenses to trim if the individual or family comes across hard times.

[Ramose]

Religion can certainly impact finances. Tithing can be a significant expense for many people. It can also be regarded as a necessity (and not a want) in the eyes of many, so it may be a last resort of expenses to trim if the individual or family comes across hard times.

Seems silly. You are giving money for people in need when you are actually in need yourself.

[kork13]

Seems silly. You are giving money for people in need when you are actually in need yourself.

In part, there's a measure of faith there that things will work out if you do the things God has asked of you, and in most cases, there's ALWAYS someone that's having a harder time than you are. It may not logically make sense, but bottom line, faith gives people hope, and a healthy measure of hope and determination can get you through quite a lot.

Besides, if your family's breadwinner has lost a job, tithing shouldn't be a factor -- 10% of no income is approximately $0/mo given to the church. It's at those times that you reach out and get help FROM the church.

[Petunia 100]

Seems silly. You are giving money for people in need when you are actually in need yourself.

Lots of things seem silly if you don't agree with the underlying principal.

If you believe there is a God, and you believe He commanded you to tithe, then you do it.

[Ramose]

Lots of things seem silly if you don't agree with the underlying principal.

If you believe there is a God, and you believe He commanded you to tithe, then you do it.

It's not that I think the concept of tithing is silly, I just think that tithing when you are struggling to make ends meet isn't a good idea.