Basic Money Management 

Scripture:  Matthew 6:31-34

“So don’t worry about these things, saying, ‘What will we eat? What will we drink? What will we wear?’ These things dominate the thoughts of unbelievers, but your heavenly Father already knows all your needs. Seek the Kingdom of God above all else, and live righteously, and he will give you everything you need. “So don’t worry about tomorrow, for tomorrow will bring its own worries. Today’s trouble is enough for today." 

How often do you worry about money? 

  • At least once a day

    Once a week or more

  • Around payday only

  • Almost never

What benefit do you get from worrying about money? Instead of worrying about money what does Jesus tell us to do?

Lesson: Financial Freedom

You have come to work in Hong Kong to help your family leave financial problem behind forever.  In today's lesson we are going to learn some time tested principles that lead to financial freedom. 

STEP 1: Face Reality

Look at where you stand now financially. Answer the following questions:  What is your current household  income (everyone combined) :     _____________ pesos. What is your total debt load?      ______________ pesos 


Lender / Reason Peso Amount $ HKD

1.

2.

3.

4.

5.

6.

7.

TOTAL Php $

STEP 2: save an Emergency Fund:

Save  $500 - 1000 a month until you have a HK $6000 emergency fund

The Tale of Two women: READ ALOUD

Story 1: Mary arrived in Hong Kong owing 30,000 pesos. Every month she sent remitted 14,000 pesos to her family and also paid 5000 pesos a month on her loan, keeping only around 3000 pesos for her own needs. For two months everything went well, but during the 3rd month, her daughter fell down and broke her arm. The hospital charge was 10,000 pesos. Mary stopped paying her loan, so that she could pay the hospital bill and the interest with penalties shot upwards, so now she would have to work for 1 year to pay off her debt.  Near the end of her first year a typhoon ruined their crops and her family asked her for 30,000 pesos to replant and rebuild the roof of their house. She went to a HK loan company to borrow the money, even though she knew she couldn't afford to make the payments. Her Philippine loan was almost paid off, but she had to stop making the payments to take care of her HK loan. After one year in HK, Mary was deep in debt and wished she had never heard of Hong Kong.

Have someone re-tell/summarize Mary's story

Story 2: Rosemary also arrived in Hong Kong owing 30,000 pesos. Every month she saved $1000 HKD (6500 peso). She  remitted only 8000 pesos to her family, 5000 pesos to pay on her loan, and kept 3000 pesos for her own needs. In her 3rd month when her son had to have his tonsils removed it cost the family 10,000 pesos. Rosemary went to the bank took out 10,000 pesos and sent it to her family. The next month she continued saving 6500 pesos a month until after 8 months she had over 40,000 pesos saved. At the 6 months mark, Rosemary finished paying off her 30,000 Philippines debt and began remitting 13,000 pesos a month to her family. . Her Philippines debt was fully paid and  after 1 year she had 65,000 pesos in the bank. The typhoon that destroyed Mary's family's crop also did serious damage to Rosemary's family home. Instead of borrowing, however, Rosemary went to the bank, withdrew 30,000 pesos and sent it to the Philippines to help her family.  

Have some re-tell/summarize Rosemarie's story

Discuss:

  • What is similar and different in the stories of these 2 ladies? 

  • How did their behaviors differ? What was the key difference?

  • Why $6000 emergency fund? How much did your last emergency cost?

  • Whose example do you want to follow? What will it take for you to imitate Rosemary?

  • What discussions will you need to have with your family? 

STEP 3: Pay off all debt and DO NOT BORROW or help others to borrow $

"The rich rule over the poor, and the borrower is slave to the lender." Proverbs 22:7

"It’s poor judgment to guarantee another person’s debt or put up security for a friend".  Proverbs 17:18 

"Don’t agree to guarantee another person’s debt or put up security for someone else."   Proverbs 22:26 

Pay off the debts you listed in Step 1.  If you can, we recommend that you pay the smallest balance FIRST. Why? Because it feels good to pay off debt and when something makes you "feel good" you want to do it more and more.  


STEP 4: Save to achieve your goals

Always keep at least HK $6000 in your account for emergency. This is a minimum and provides a safety net for your family. After you set up your safety net, continue to save toward your goals: to build a house, children's education, agency fee to go to Canada, seed money to start a business. 

DISCUSS:

  • What is your financial goal?

  • What personal character traits does it take to successfully save money for a safety net and later for our goals? 

  • What personal character traits will lead someone into deeper and deeper debt? 

  • What are some ways we can get our family to understand the importance of a safety net?

Prayer Focus: 

Heavenly Father,

Thank you for my employer! Thank you for providing for my family. I want to live wisely. Help my family learn how to manage money well. Lord I want to seek your kingdom and your righteousness and trust you to supply all my needs. Thank you!   Amen