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Therapists often emphasize that how we think and act today is heavily influenced by how we were raised. Growing up, busy work schedules and numerous school activities made it impossible for parents to be around their kids 24/7. Even today, as parents of adult children and grandparents, it's still hard to monitor everything they're doing. If you manage to get a few hours of quality time with them, you're among the lucky few. But, do you know who gets the majority of their time?
The Influence of Friends and Cell Phones
Their friends and their cell phones dominate their time. On these devices and with their peers, they're continuously bombarded with financial information they haven't learned to process or distinguish between right and wrong.
Like us, developing discernment about money takes time, discipline, responsibility, and a willingness to follow the word of God. Regardless of your parenting skills, some things inevitably come between you and your child, particularly concerning money.
Developing a Money Script Full of Lies
During this time, they are crafting their "money script"—beliefs and habits about money that will either serve them in adulthood or be passed on to their children. If they accept these scripts without questioning, we risk raising another financially illiterate generation. Today, we will discuss an article by Dr. Art Rainer covering the seven lies teenagers believe about money. We will break these down and explore counter-arguments.
Preparing the Next Stewards
As a Certified Private Wealth Advisor®️ professional with over a decade of experience, my primary focus is family. We aim to ensure that the wealth accumulated by our clients can be passed down effectively to the next generation.
However, what we find is that this inheritance can sometimes be misused or abused because beneficiaries aren't equipped to manage the money they receive. They turn to platforms like YouTube, TikTok, and Instagram for financial advice and often receive bad information.
Lie #1: The Bible Doesn’t Really Speak About Money
This first lie is easily debunked. All you need to do is look up the scriptures. Money is the second most discussed subject in the Bible, right after the kingdom of God. The scriptures cover a wide array of money-related topics: how to exchange money, avoiding covetousness, paying off debts, staying out of debt, and more. Estimates suggest there are around 2,000 verses about money, possessions, and stewardship.
"Before you run to Napoleon Hill’s 'Think and Grow Rich' or Tony Robbins’ 'Awaken the Giant Within', make sure to pick up the Bible and see what it says."
If you have an adult child struggling with money, give them a Bible. Don’t just hand it over—look up some scriptures about finances, highlight them, and guide them through.
Lie #2: Money Will Make You Happy
This isn't just a lie teenagers believe; it’s a common misconception for adults too. Money historically appears as a shortcut to fulfilling needs. If we’re hungry, we buy food; if we’re cold, we buy a coat. While money can indeed close the gap between pain and pleasure, it doesn't equate to happiness. The temporary pleasure we derive from purchases isn't sustainable.
The Law of Diminishing Returns
The article discusses the law of diminishing returns: the more we have of something, the less satisfaction we get from each additional unit. Imagine you haven’t eaten for days. The first cookie you eat is heavenly.
By the tenth, you’re less enthused. By the hundredth, you’re sick. Money works the same way. Initially, fulfilling basic needs like food, shelter, and security will bring happiness. But once those needs are met, accumulating more doesn't significantly increase happiness.
"The true sign of wealth is not the man who can buy anything he wants, but the man that is satisfied with everything he has."
Real-life Examples
Celebrities often fall into this trap. Despite their wealth, many still experience unhappiness, leading to tragic decisions. A recent example is the founder of Fandango, who took his life despite having a $20 million house and a successful career. Money alone doesn't bring joy.
Lie #3: Media Portrays Real Wealth
Media often portrays wealth through flashy cars, big houses, and luxurious lifestyles. However, this image is misleading. If they were truly content with their wealth, why flaunt it online? The reality is that these displays reflect a need for attention, friendship, and love—things money can’t buy.
Social media exacerbates this issue by fostering comparison and competition. People don’t usually boast about everyday possessions, but when someone flaunts something extravagant, it creates a sense of inadequacy.
Contentment as True Wealth
To counteract this, it’s important to remember that real wealth comes from contentment. Being happy with what you have rather than constantly seeking more is a sign of true wealth. It's not a competition.
Lie #4: Current Decisions Don’t Matter
Many teenagers believe their current financial decisions don’t matter, thinking they've got plenty of time to correct mistakes. However, time flies, and the earlier they start making prudent financial decisions, the better off they'll be.
The Importance of Starting Early
Starting early with saving and investing significantly increases the likelihood of financial success. Early investors have more time to learn, make mistakes, and recover. For instance, someone who starts investing in their 20s is in a far better position than someone who starts two years before retirement.
"Your financial decisions now have long-term impacts on your future."
Lie #5: Everything Will Work Itself Out
Believing that everything will eventually work itself out without deliberate action is flawed thinking. Financial security requires careful planning and proactive measures.
Planning for Financial Security
Living paycheck to paycheck without saving is unsustainable. While your earning potential may increase, without a savings plan, financial security remains elusive, especially as you approach retirement. Planning is crucial for long-term stability.
Lie #6: I Don’t Need to Know Much About Money
Financial illiteracy is at an all-time high. This lack of knowledge leads to poor financial decisions and misunderstandings about how money works.
The Consequences of Financial Illiteracy
Many people, including lawmakers, lack a fundamental understanding of financial principles, resulting in ineffective policies. Financial literacy is essential for making informed decisions, avoiding scams, and understanding contracts.
Lie #7: The Little Money I Have Won’t Make a Difference
Underestimating the impact of small financial contributions is a common mistake. Even modest savings and investments can accumulate and make a significant difference over time.
Every Little Bit Helps
Every contribution matters, regardless of size. In the US, we are often wealthier than most of the world, and even small acts of saving and giving can have a large impact.
"Comparison is the thief of joy. Be content with what you have and grateful for God’s blessings."
Conclusion
In conclusion, addressing and debunking these money lies is crucial for fostering financial literacy and security. The Bible offers timeless wisdom on managing finances, and focusing on God’s word can guide you towards true wealth and contentment.
As a closing note, I’d like to extend my heartfelt thanks to all my subscribers. We are closing in on our 300th episode, and it’s all thanks to you!
If you’re not yet subscribed, I hope this post has earned your subscription. Click the subscribe button on your preferred podcast platform. If you need financial help, visit ABR Wealth Management, a Christian financial firm offering tailored financial planning with God in mind.
"True wealth is not the ability to buy everything, but contentment with what you have."
7 Money Lies About Money You are Believing Right Now
Podcast Summary
A.B. Ridgeway explores the pervasive money myths that teenagers often believe. Based on Dr. Art Rainer's article, Ridgeway discusses the importance of financial literacy and the impact of money misconceptions on future generations. The episode highlights the significance of grounding financial principles in Biblical teachings, aiming to equip listeners with the knowledge to guide their children towards sound financial decisions.
Key Takeaways:
Parental Influence on Financial Habits: The way children are raised greatly impacts their financial behaviors as adults. Despite parents' best efforts, children are often influenced more by their friends and digital media. It's crucial to spend quality time teaching them discernment, discipline, and Biblical principles regarding money.
Biblical Guidance on Money: Contrary to popular belief, the Bible extensively discusses money management, with approximately 2,000 verses on the topic. It provides wisdom on avoiding debt, responsible stewardship, and the spiritual aspects of handling money. Encouraging children to study these scriptures can guide them towards better financial habits.
Money and Happiness: The notion that money brings happiness is a common misconception. While money can provide temporary pleasure by meeting basic needs, it does not lead to sustained happiness. True contentment comes from non-material aspects of life, such as relationships and fulfilling purposes beyond financial gain.
Media Portrayals of Wealth: Media often equates wealth with expensive possessions, leading many to believe that material items define success. This portrayal can create a cycle of dissatisfaction, as people constantly seek more to feel fulfilled. Real wealth, however, lies in being content with what one has and finding value beyond material goods.
The Importance of Early Financial Planning: The decisions made in youth have long-term financial implications. Starting to save and invest early increases the likelihood of financial security in adulthood. Misguided beliefs that everything will work out without planning can lead to financial instability later in life. Therefore, instilling good financial habits early is crucial.
Quotes:
"Money is actually the second most talked about subject in the Bible, right behind the kingdom of God."
"The sign of true wealth is not the man that can buy anything he wants, but the man who is happy with everything he has."
"We need to stop coveting money and thinking that it is going to bring us happiness."
Tune in to this insightful episode to explore these financial truths and learn how to guide the next generation towards a more financially literate and spiritually grounded future.
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As Christians, we were taught to be good stewards over our tithing and giving to the less fortunate. But when it came to our personal finances and investing we were left clueless on what the Bible says. What does the Bible say about managing debt, leaving a legacy, investing, and planning for your retirement? Mr. Christian Finance answers these and many other questions because we want to teach you how to become rich and righteous!
Meet A.B. Ridgeway:
A.B. Ridgeway, MBA, CPWA®️ (info@abrwealthmanagement.com) is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.
*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.
Inspired by an original article by Art Rainer, CERTCFC® for FAITHFI: