Back To School Smarts with Crystal Paine

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Could you use a few tips while you're in for a treat? Crystal Payne joins us today with some great advice to make your back to school experience easier. Then it's on to your calls at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial journey. Well, many of you already know Crystal Payne, the creator of MoneySavingMom.com. For years, she's helped busy moms and dads save tons of money and keep their lives organized and on track. Crystal, great to have you back with us.

Thanks so much for having me. So we're talking about getting the kids ready to return to the classroom in a few weeks. Of course, the first thing that comes to mind is how expensive that will be this year, especially with inflation.

So why don't we start there, Crystal? How can folks stay on budget as they buy everything from clothes to crayons and maybe even a computer here and there? I would really say to start with the essentials. There's so much that you could buy, but what do you really have to buy and what is in your budget?

And if your kids are older, I really challenge you to involve them in the process. We actually give our teens a back to school budget for clothes and it's their responsibility to figure out what they want and need and then to stick with the budget. And sometimes they end up spending some of their own money to buy something else. And this has just been really helpful for them. I also say to look into whether your school offers a package deal with all the back to school products you need.

Sometimes it's actually less expensive to just buy that and then you don't have to worry about going to the different stores to get what you need and it will save you a lot of time. And then also follow MoneySavingMom.com. We are sharing all the best deals on school supplies, back to school clothes, uniforms, backpacks, lunch boxes and even those laptop computers. Excellent. MoneySavingMom.com is where to go.

All right. What about tax free weekends? Most states have them now. So how can we make the most of them? I would check right now to see if your state offers it, when it's going to be and what is covered under it because different states have different rules, what will be tax free and what won't. And then look at your budget to see what you have to spend and then decide whether you want to purchase some other extra items like maybe you could replace a laptop if electronics are included or buying extra groceries if groceries are included. It's a great opportunity to save money on things you are already planning to buy, even if it's not even something for back to school. Yeah, that's great advice. Now, I thought getting the kids involved to your earlier point made a lot of sense. What about taking them with you when you actually do the back to school shopping?

You know, I would say it depends upon whether you've practiced self-discipline and sticking with the budget. If they are the kind of kids that they're going to go to the store with you and want all of these things, then probably leave them home. But I would challenge you that you need to start working with them on this.

You need to start prioritizing this in little ways. We start when our kids are three and four years old, giving them opportunities to earn money by doing extra chores. And then they take that money to the store and they get to pick out what they want to buy. And then they go up to the cash register and they check out.

And it's just teaching them how to handle money on the small level, teaching them the value of money so that as they grow older, they're going to understand it and hopefully it's going to save them some bigger mistakes. That's great. All right, let's talk about routines and rhythms. What do you have for us there as we return to school? One of the things we like to do is we don't wait until the night before school to be like, oh, we need a new routine, really start planning it, talking about it, thinking through what's realistic for your family, for each person in your home a few weeks before. And then start practicing it, start waking up at the time you need to wake up, start pretending like you have to get out the door by six thirty or seven and get into the rhythm early.

That is going to make it so much easier when you actually have to make that transition. That's what I talk about in my book, The Time Saving Mom, that a successful morning begins the night before. So do as much as you can the night before to set up the next day for success, laying out clothes, packing lunches and backpacks, prepping and planning breakfast. It's going to give you a huge head start on the next day.

Crystal, that is so good. All right. In the midst of the busyness, how do we stay spiritually balanced? I think the biggest thing, start your day with prayer. Remember that God is everything you need to do everything he's called you to. So rely upon him.

Release your worries and your stresses to him. Start from that framework. Oh, that is so good. Crystal, that was short. We're going to have to have you back.

But it was really powerful. And I think it will set our listeners up for success as they head back to school. Thanks for stopping by. Thanks so much for having me.

She's Crystal Payne. For more great ideas on how to save money, go to MoneySavingMom.com. Your calls are next 800-525-7000. I'm Rob West and this is Faith and Finance.

Stick around. Are you looking for a financial professional who aligns with your biblical values? Certified Kingdom Advisors are trusted financial, legal or accounting professionals who have completed a rigorous certification program to ensure they provide biblically wise financial advice as part of their practice.

You can find a local CKA professional in your area by going to faithbuy.com and clicking Find a CKA. Great to have you with us today on Faith and Finance. We've got some lines open today taking your calls and questions on anything financial. The number 800-525-7000. Again, that's 800-525-7000.

You can call right now. Some new data out today on credit cards. It shows that about a third of all credit card holders were delinquent in payments in 2023.

This is according to the New York Federal Reserve. Nearly one out of five card holders maxed out their cards in the first quarter of this year. That's defined as using 90% or more of your available credit, which by the way, when you get above 30% of available credit, you're going to begin to drop your credit score as a result. That has to do with your credit utilization.

We always want to keep individual cards under 30%. Even if you're paying it off at the end of the month, keep in mind, if you pay based on your due date, that's after the cycle has ended. So remember, the balance on the card at the end of the cycle is what's being reported to the Bureau. And so if you're letting the cycle end and then you're paying by the due date, even if you're paying it in full, it's going to be reported to the Bureau with the balance as of the end of the cycle, even though you're paying on time, and you're paying it off and you're not paying any interest. Well, if just through the normal course of your charges over a month's time, even if you're paying it off, your balance is rising above 30% of your limit. Well, that balance being reported to the Bureau is actually going to start to pull that credit score down.

So just be aware of that. How would you get around that if that was an issue? Well, you would actually pay early. So you would pay in such a way that that payment would be posted prior to the end of the cycle. And therefore, that balance could be reported to the Bureau at or near zero. And that would absolutely bring that credit utilization down to almost nothing, which would boost your score.

So just something to keep in mind there. But nevertheless, what we're seeing is in this data, one out of five cardholders maxed out their cards, that is, they weren't using 30% of their credit utilization, they were using 90% or more, one out of five in the first quarter of 2024. Total household debt rose to $184 billion in the first quarter alone, that's up just over 1% to 17.7 trillion. Now, many analysts are saying that inflation is a major cause for the spike in personal debt. So if you're relying on credit to meet your monthly expenses, let me just tell you that's not sustainable. Eventually, you'll run out of available credit, then you'll have the uphill battle of paying off that debt. Keep in mind, there is a concerted effort on the part of the credit card industry because they're in business to make a profit. You could argue whether or not they're doing it properly.

But nevertheless, that is their objective is to return is the return to their shareholders. And we call it debt mountain, essentially, they start with a lower limit, get you in, help you to feel like you're, you're worthy, you deserve credit, you're getting that, you know, envelope in the mail, they're starting younger and younger. My, my oldest is a freshman in college, I mean, he gets a credit card solicitation almost daily. And the the language around that solicitation is congratulations, you did it, you earned it, you're a good student, you deserve credit, it's the way we pay for things. And so they get you in.

And get your charge. And they know they're not going to make a whole lot other than the merchant rebate in those first few years. And they're going to let your credit card limit as you pay off that balance continue to rise, hoping you'll charge more and more. And then once you start to carry a balance, well, now they're making more because they're getting the merchant rebate. Plus, they're getting the interest, they're going to keep raising that limit until eventually you are late, because you didn't have the money, you missed the payment. Now all of a sudden, they're earning. Late fees, at that point, they have the ability to drop the limit if they want that could impose over limit fees. Well, now they're really making money.

So it's just kind of a game that happens over time, we don't want to play that game. We want to only use credit to the extent we're using it for budgeted items, we're paying off that debt in full at the end of the month, and and living according to biblical principles. Now, if you haven't downloaded the new FaithFi app, FaithFi 4.0, do it today. We just came out with the brand new edition this week. It will help you set up a budget that allows you to live on less than you make, so that you can avoid debt and put something in the bank for emergencies.

You absolutely won't regret it. Julie and I use it daily in our personal finances. I was just in it last night, looking at our vacation envelope, because we've got a trip we're thinking about taking. In the fall with the kids during fall break, and we were just checking that vacation envelope. What do we have in there today? What will we have in there in the fall?

And how can we make sure we're paying for that vacation with cash? Well, that's only because we had the FaithFi app that we could see exactly what was in our vacation envelope. The new features in the app are incredible. It's a brand new kind of fresh look and feel using a really simple, easy to use format.

We introduced dark mode, we introduced some new reporting features. We introduced an income based plan feature where instead of just allocating based on expected income to your envelopes on a certain day and time and funding those envelopes in the app, you can actually tie it to a specific paycheck. So when I receive this paycheck on this day, then I want you to fund these envelopes in these amounts or percentages and it really will help you put a plan in place that not only balances, but that you can maintain and the budget that's going to work best for you is the budget that you'll stick to. And that can actually allow you to make some decisions along the way. It's not a matter of getting to the end of the month and looking back and say, Yep, I messed up there.

And oh, yeah, we went over that in that category again. No, we need the information in real time. So we can make changes. You can't do that unless you have a system.

Are there other systems? Absolutely. We just happen to think the FaithFi app is the best one. So if you want to check it out today, just head to your app store, Apple or Google Play, search for FaithFi. Or if you'd rather, just go to our website, faithfi.com. Click on the app button and you can learn all about it.

There's a new blog post there at faithfi.com about all the new features in FaithFi 4.0. But we'd love for you to check it out today. Let's take your phone calls. Again, we have lines open with whatever you're thinking about in your financial life today. Give us a call. 800-525-7000. We'll begin in Noblesville, Indiana. Hi, Hank.

Go ahead, sir. Yeah, I've got two kids that are in college right now. 20-some years ago, my grandfather set up a 529 for each of them. He passed in 2010 and I had another daughter that was born in 2010. I'm curious, with the money that's left over when my two older kids graduate from college, if there's money left in their 529s, can that be applied to my younger daughters?

It sure can. Yeah, what you would want to do is either do a plan-to-plan rollover to another child or you could just do a beneficiary change. And so, in your case, you may just want to do a beneficiary change and then you won't need to transfer any money. And it just allows another qualifying family member to use those funds, which includes brothers and sisters and a whole host of others. So, you'll just want to get in touch with your 529 plan administrator and let them know that you want to do a beneficiary change to that other child and you can go from there. Okay. When she finishes college, then could we, if that was all combined, could I split that apart into three different accounts then again so each child would have one for their future families? Yeah, so what you would do is you would open another account and then you would be able, at that point, to transfer a portion to do a plan-to-plan rollover into another account with a different beneficiary on it.

And that would be the way you'd do it if you want to split it up among other children. All right. Perfect.

Thanks for your help. I appreciate it. All right, Hank. Thanks for your call today.

We appreciate you. Folks, this is Faith in Finance. We're only halfway through the program.

Still have a lot of ground to cover. If you have a financial question, call right now, 800-525-7000. By the way, if you'd like to support our work, a gift of $20 or more, we'll send you a copy of our new study, Rich Toward God, at faithfi.com.

We'll be right back. Are you searching for a way to become a better, faithful steward of the resources that God has given you? Well, download the Faithfi app and join the 37,000 others who are already using our app. The Faithfi app will provide you with wisdom, community, and simply help you stay on track with your finances. We have three money management options to choose from, so find an option that fits your unique needs.

It's available on desktop or mobile. Simply go to faithfi.com and click app to get started. We are grateful for support from the Eventide Center for Faith and Investing. ECFI is an educational initiative of Eventide Asset Management that seeks to help Christians understand and practice biblically faithful investing. They do this through their podcast and online journal featuring articles from industry thought leaders and their course called Discover God's Story for Investing. More information is available at faithandinvesting.com.

That's faithandinvesting.com. I'm so glad that you joined us today on Faith and Finance. Let's head right back to the phones. By the way, here in our final segment, we've got a few lines open, 800-525-7000. You can call right now with your financial questions.

David is waiting patiently there in Mississippi. Go ahead, sir. Yes, sir. I haven't done any IRAs in like 20 years.

Okay. And somebody told me I could catch up. Is that true?

No, no, no. So the annual contribution limit for an IRA is going to be just that. It's annual. And if you didn't fund a prior year, you don't have the ability to go back and fund it. The only kind of exception there would be if you're into the next year. So let's say you and I were having this conversation in March of 2025 and you had not filed your 2024 taxes yet. You could go ahead and contribute for 2024 up until you file your tax return. So you theoretically have until April 15th to fund the prior year. But apart from that, you can't make up for any prior years where you did not make a contribution. So the contribution limit for 2024 is $7,000 if you're under 50 and $8,000 if you're 50 or older.

And if you're married, you could have a spousal IRA and double that. But that would be the only opportunity. Okay.

I thought he was a little nutty. Okay. Thank you for your call, David. We appreciate that. Let's see. Let's go to Arkansas. Hi, Ann.

How can I help? Yes, sir. Just occurred to me. I wonder if I need to be concerned about my CDs at the bank and what the bank is investing my money in?

Yeah. Yeah, it's a good question. I mean, they would take your money and then loan it out. And so that's what they would do with that money. And so they're going to try to loan it out at a rate higher than what they're paying you. That's how they stay in business. You know, what could they be loaning that money for and who might they be loaning that to?

Yeah, there's no way to know that. I think one thing you could consider, though, Ann, because more and more believers like you are saying, I want to know that the companies I'm doing business with share my values. And that's important to them.

And I think for good reason. And so I think working with a banking partner that you are confident shares your values could make a lot of sense. And they offer CDs. I'm thinking of the Christian Community Credit Union. They're nationwide and they have some wonderful options and they take a portion of everything that they earn and they give it to Christian Mission. So if you want to learn more, just go to if you're comfortable on the Web, go to JoinChristianCommunity.com.

That's JoinChristianCommunity.com. Thanks for your call today. Let's go to Kentucky. Hi, Tracy. Go ahead.

Thank you for your show, Rob. And my question is, my husband and I tied. We have always, because we believe everything we have is God's. But we just really struggle with where we're at in church with some of their financial decisions. And we feel like we're the only two. We sit in business meetings and we think, are we the only two that disagree with this? And so writing out that tied check, it's just really difficult when we really don't agree with what they're investing money in. I mean, we pray, are we wrong?

Is the church wrong? God, everything we have is yours. We don't want to withhold. We don't use it as an excuse not to give. But we just feel like the money could be spent in much better ways.

Yeah, yeah. Well, it's a great question, Tracy. And I think the big idea here, number one is that we absolutely need to be involved in and you guys are so I'm not saying you're not, but we need to be involved in and active in the local church. You know, that's God's plan A, you know, we need to be there serving and growing in a community of believers in a Bible believing church.

That's number one. I think this matter of the tithe is kind of a secondary issue in the sense that we need to decide first where has God planted you. And if you then have concerns about any part of what's going on at the church, I think you take those concerns to the elders or the governing body of your church, because you want to be able to talk it through and pray for wisdom and discernment in that conversation. And is it possible that this is just a disagreement that reasonable people may have?

Or is there something else there? You know, I think you could also raise the issue of your church as a membership meeting, I wouldn't in any way gossip about the issue, or cast dispersion. But I think in a way that's respectful and, and in the channels that are that already exist, I would I would raise the issue and ask for further clarification. Perhaps you want to consider serving on your church finance committee, if there is one.

I've done that in the past. And that's a way not for you to just kind of impose your desires necessarily, but for somebody who's willing to say, Listen, I want to get in the boat with you, and help provide, you know, some of that wisdom and leadership and, you know, seeking the Lord through prayer for discernment around how the church should conduct its finances. But ultimately, I think if you feel your leadership refuses to practice faithful stewardship with the church finances, then ultimately, you'd have a bigger question, not necessarily about your tithe. But really, is that the right church for you? Because you have to be a faithful steward of the resources God has given you. Have you ever raised these concerns with anybody on the church leadership?

No, we haven't. Okay. And it could be that if you were to do that, you know, you could get some clarification that might, you know, help you understand why decisions are being made the way they are. It's often difficult kind of sitting in the pews to understand the full perspective of why things are being done.

I'm not saying everything necessarily is being done exactly the way it should they may or may not be. But apart from you asking some questions, again, in the right heart posture, with the right approach, to say, listen, I love this church, and you know, we're here, and we're committed, and we're faithful givers. But just from where I sit, there are some questions I have that I'd love to be able to dig a little deeper on and see if somebody can help walk you through that. I would imagine they would welcome that conversation. I always did when I was the chairman of the finance committee at the churches I've been a part of in the past. Because otherwise, you don't have an opportunity to explain the rationale and the decision making that's going on. So I would encourage you, perhaps as a next step, to maybe take a few, a few days for you and your husband just to kind of pray through it, Lord, give us wisdom as to how we should approach this.

And if you legitimately have some questions or concerns, you know, take that, you know, to the elders or, you know, perhaps you, you know, ask your pastor, what's the best channel to explore this and see where that goes. Does that make sense? Yeah, it does. Yes.

Thank you. Okay, absolutely. But listen, I appreciate you raising this question because, you know, we should be givers and I believe that should start with our local church. I think that's very clear in Scripture. And yet there are going to be from time to time questions or concerns.

Now, at the end of the day, if this is where God has planted you and you feel like, you know, this is your church home, I think there's some element of just saying, hey, we're going to trust the authorities that God has put in place, but that doesn't mean we can't ask some questions along the way. God bless you. Well, folks, that's going to do it for us.

We covered a lot of ground today. Let me finish with this. You know, when we think about a biblical worldview of money management, it starts with lordship. God owns it all and then stewardship. Money is a tool to accomplish God's purposes. I think right behind that is generosity.

Giving breaks the grip of money over our lives. I hope you think about that today as you think about your role as a steward. A big thanks to my team today. Couldn't do it without them.

Autumn on phones. Devin, my producer, Jim on research and everybody here at Faith Buy. If you want to support our work, go to faithbuy.com and click give. We'll see you tomorrow. Bye bye. Faith and Finance is provided by Faith Buy and listeners like you.