Proverbs on Finances and Family Budgeting

• Mares Hernandez created the content.

Proverbs 6:6-8

• Go to the ant, you sluggard, consider its ways and be wise.
• The ant has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.

Budget definition

• A financial plan that estimates the necessary income and expenses to carry out a project or activity.

Family Budget definition

• A detailed plan which establishes a family's income and expenses for a specific period, usually monthly.

Family Budget importance

• Control expenses.
• Avoid debts.
• Save for emergencies.
• Save for long-term goals.

Income

• All the profit received from the sale of a good or service, generally made effective through a collection in the form of money.

Expense

• The use of money to obtain goods or services.

Cash Flow

• The movement of cash that enters and leaves a company.
• It includes both the income generated by sales, operating expenses, and investments.

Loans

• An agreement where a lender gives an amount of money to a borrower, who must return that money plus interest.

Usury Loans

• Excessive interest charged for acquiring a loan or credit.

Interest definition

• An index used to indicate the profitability of savings or investment or the cost of credit.

Interest calculation

• Interest = Principal x Interest Rate x Time Interest

Practice case

• An individual takes out a loan of $15,000.00 at an annual interest rate of 5% for 2 years.
• The interest is $1,500.00.

Credit definition

• A financing operation where someone lends a certain amount of money to someone else.
• The credit score reflects your credit history.

Investments defined

• The allocation of resources, usually money, into an asset with the expectation of obtaining a return or profit in the future.

Taxes definition

• Contributions that citizens and companies must pay to the State, allowing it to offer goods and services that increase social welfare.

Inflation definition

• The general increase in the prices of goods and services in an economy, which causes money to lose value.

Inflation affects:

• Lower savings capacity.
• More expensive debts.
• Readjustment of consumption habits.
• Increase in the prices of the basic basket.

Tithe

• Malachi 3:8-12 discusses tithing and warns against robbing God.
• Tithing involves bringing the whole tithe into the storehouse so that there may be food in the house.
• The Lord of hosts promises to open the windows of heaven and pour out blessing so great that one will not have enough room to receive it.

Advice about Christian stewardship

• God asks that the tithe is brought to His treasury.
• That part must be returned strictly, honestly, and faithfully.
• God requests donations and offerings in addition to this.
• No one is required to present their tithes, donations, or offerings before God.
• With the same security with which the Word of God has been given, God will require what is His with interest from the hand of each human being.
• If men are unfaithful in returning to God what belongs to Him, if they ignore the commission given to His stewards, they will not continue to have the blessing of what the Lord has entrusted to them.

Expenditure breakdown

• 50% Necessities
• 30% Desires
• 20% Savings and goals