Small Business by the Book

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And it's available in all 50 states and around the world. Learn more at chministries.org slash faithbuy. If you are a Christian who owns or manages a small business, even if you're just making a few extra bucks on the side, this is for you.

Hi, I'm Rob West. They say small business is the backbone of the American economy. Today, we'll look at what's changing for small businesses, and more important, what doesn't change when you're following Christ. Then we'll take your calls at 800-525-7000.

That's 800-525-7000. This is faith and finance, biblical wisdom for your financial journey. Well, the past few years haven't been easy for small businesses in the US. The COVID-19 pandemic threw the supply chain, the workforce, and the economy into chaos, forcing many small companies to close their doors and sending workers home by the millions.

But small business owners are nothing if not resourceful, and many of you have pivoted into new realities with determination and creativity. Of course, as Christians in business, we are called to a higher standard. Colossians 3 23 and 24 says, Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward.

You are serving the Lord Christ. The benefit of tying your business standards to eternal values is that those values don't change with the whims of culture or economic trends. The end result for Christian employers and employees is blessing, which is a faithful witness to everyone. As Jesus told his disciples in John 15 8, By this my Father is glorified, that you bear much fruit, and so prove to be my disciples. So let's take a few moments here to outline a few of the basic biblical principles that should guide your professional actions and attitudes in the managing of a small business.

The first principle is fundamental, and once you get this one, the rest makes much more sense. I'm talking about stewardship. In a nutshell, stewardship is what happens when you understand that the earth is the Lord's and everything in it, as it says in Psalm 24. So as business owners and managers, we submit our work, our resources, and our profits to the Lord, because he is really the boss. We can have a kingdom perspective on everything from hiring to inventory to profits and losses. As managers, we turn to Christ seeking first his kingdom and his righteousness, trusting that he will provide what we need to take care of all of the business details.

That includes taking care of our families. Ultimately, success or failure in the business becomes God's problem, while we do our best letting him take care of the rest. In the post-pandemic business environment, workplace norms have really shifted.

Many workers who left the office to work at home have stayed there. Lots of small businesses are dealing with hybrid workforces that have different sets of expectations. This is where eternal biblical principles can keep you moving in the right direction, because once you have God's authority over your business figured out, you can focus on the horizontal relationships, how you interact with your employees, customers, suppliers, contractors, and even your competitors. Most importantly, treat everyone with integrity.

Deuteronomy 16 19 says you shall not distort justice, you shall not be partial, and you shall not take a bribe. What does that look like in a business context? Well, pay fair wages, show your concern for employees' well-being, and treat your customers, contractors, and yes, your competitors fairly. According to SmallBizTrends.com, workplace expectations have changed in recent years, especially along generational lines.

In general, millennials want positive workplace culture and flexible schedules, and Gen Z workers value fun even more than money. Maintaining biblical values in your company can help meet the felt needs of every employee. One way to maintain a healthy company culture is to set an example. As a business owner who belongs to Christ, you have an opportunity to demonstrate godly character to those around you. You can do that by pursuing righteous business practices.

Here's how. Be honest, communicate clearly, keep your promises, and pursue excellence. As the late Larry Burkett once said, there's nothing more honoring to God than quality service or a quality product from a professing Christian. Proverbs 22 29 confirms this. It reads, do you see a man skilled in his work?

He will stand before kings. You see, as the business owner or manager, you're in a unique position to have an impact on your community through your generosity and compassion, and I pray that you use your professional resources and influence to further Christ's kingdom right where you live and work. I hope that's an encouragement. All right, your calls are next.

800-525-7000. Stick around. Faith by account by going to faith by.com and click sign up to begin receiving weekly wisdom in your inbox. If you enjoy this radio program, you're going to love all of the many different resources waiting for you at faith by.com and the faith by app. You'll find powerful wisdom, free podcasts, articles, videos, and more from leading voices such as Randy Alcorn, Howard Dayton, Ron Blue, and our own Rob West. Grow in wisdom and knowledge by connecting with a community of thousands of Christians striving to be good and faithful stewards at faithby.com or by downloading the faith by app. Welcome back to faith and finance. I'm Rob West. We're taking your calls and questions today on anything financial.

We've got some great ones coming up. Before we do though, let me read this from Psalm 20. Now this I know the Lord gives victory to his anointed. He answers him from his heavenly sanctuary with the victorious power of his right hand.

Now listen to this. Some trust in chariots and some in horses, but we trust in the name of the Lord our God. They are brought to their knees and fall, but we rise up and stand firm. You know, think about this, some trust in chariots and some in horses. Back in David's day, chariots and horses were the most powerful military technologies available. If you had those, you could usually expect victory, but the Psalm says there's something even more powerful out there, the name of God. In spite of that, some people are still putting their faith in worldly things like today's equivalent of chariots and horses. You know, false gods can be a financial security. Government provision can be another false god. Power is often worshiped as a false god. Personal autonomy is a very deceptive false gods. And the consequences of trusting in false gods are severe. Whatever you face today, whatever decisions you have to make, whatever changes or challenges come your way, don't make the mistake of turning to false gods to help you. When you're a believer in Christ, you have a much greater resource. The name of the Lord your God.

I hope that's an encouragement to you. All right, let's head back to the phones and tackle more of your questions today. We're going to go to Twin Links, Wisconsin. Hey Mike, thanks for calling, sir. Go ahead.

Hi, thanks for taking my call. I have four kids. My oldest is seven years old and I was listening to the program and I heard you recommend putting people on as authorized users to help them build credit without necessarily giving them the credit card. And so I was wondering if there is an age requirement or minimum for that and if it would be a good idea to put my kids on my credit card. We have good credit paid off every month. Sure. And then a quick follow-up to that, any suggestions you have for building credit for kids outside of that, if that's an option?

Yeah, well, it is an option but probably not quite yet. Did you say your oldest is seven? Yeah, he's seven years old.

Yeah, so you're going to be a little bit premature here. While the minimum age to get an actual credit card of your own is going to be 18, an authorized user can be as young as 13, but certainly not seven. So you're still a little ways off six years before you can do this. Now, each issuer is going to have their own age requirements, so you'll need to check with the card issuer at that time just to ensure they do go as low as 13. But it is an option as low as 13, just not as young as you're talking about today. And there really aren't any other options to build credit at this point. I mean, but as long as you're doing it, you know, while they're in high school, they're still going to be a well ahead of everybody else through either an authorized user status, inheriting your credit, a secured credit card at some point, one that's, you know, specifically for kids, you know, those would be great options, especially if alongside that you're teaching some really good money management skills and kind of, you know, biblical principles along the way, starting with God owns it all, but you're still probably six years shy of being able to do that. Okay, and then do I have time for a quick follow up with that, too?

Sure, of course. Along the same lines, what are your thoughts on debit cards for kids? To use them, not to use them.

I've seen them advertised. Is that a good idea? When would I start doing that, if it were?

Yeah, I certainly can be. I think the key is you really need to, you know, be training them alongside that. So I like that option a lot, whether you use something like, you know, Greenlight that's really built for kids or, you know, we use the Capital One money card with our kids for our teens, just to get them started. And, you know, whether you use the Faithfi app to help them, you know, set up a very simple envelope based budget so that whenever they get money, whether it's through a part time job, when they're able to do that, or allowances or gift money, they can put it in there and start to give, save and spend and they could keep it really simple, but still sync it up with their, you know, account with their debit card. And then whether it's through Apple Pay on their device linked to a debit card or using the physical card, again, you're starting to teach while they're at home, the idea of, you know, using and saving money, calculating how much is available, making plans for it, and then also how to responsibly use, you know, a an electronic means of payment, which is obviously more and more prevalent these days, very few kids carry cash around or even physical cards anymore, it's all linked to their smartphones. But as long as you're going to step into that role of walking alongside them and teaching, using this as a teaching tool, then I can I think it can go a long way. We've loved it, Julie and I just because we're able to manage everything, see it, have visibility into all the transactions, move money back and forth as we, you know, give them spending allowances and, you know, things like that. So it really has become a great resource.

Again, we use the the Capital One money, it's for teens, but there's a lot of great options out there that you could research. All right, thank you so much, and thank you for your ministry. All right, Mike, appreciate your call, my friend.

God bless you. 800-525-7000, we got one line open, we're going to head to Illinois. Hi, John, go ahead, sir.

Hey, Rob, thank you for taking my call, sure to appreciate you and your ministry. Yes, I have a question for you. So a couple, they're married and they're going to enter into the debt management program and these credit cards are in the wife's name, but one of them somehow got the husband's name on there. So the question is, does that one get put into the debt management program without affecting the husband's credit score and everything else?

Yeah, well, a couple of things here. First of all, let's unpack this where you said the husband's name on it. He would have had to, if it's truly a joint account where he's responsible, he would have had to sign on this account as well. If that didn't happen, perhaps he's been added as an authorized user, but in that case, it would flow to his credit report.

Do you know kind of what the status of that is? He is on that card as a joint on that card. So how it happened, I don't understand. So I tried to call the card company and they said, no, no luck. So I don't know how that happened.

All right. Well, it doesn't really matter because even if he was an authorized user, it would still flow there anyway. Here's the reality though, debt management is not a part of the credit scoring algorithm. So the fact that you're in a credit counseling program is not factored into the credit score. What is factored in is when you go into the program, the card has to be closed and that can slightly affect your credit because now that credit is no longer available and it's noted on your account or it could be that you're in a debt management program, but only as a notation. Again, it's not a part of the scoring algorithm itself. So the only change that would occur to the credit score itself would be just based on the closing of the account and for those accounts where she's the only one on it, it would only flow to her account as long as he's not an authorized user or a joint account holder. On the one where he is, that closing of the account would flow through to his report as well, but not his score. So I think it's not a big deal.

What's most important to me is that they get out of debt once and for all and the best way to do that, I believe, is debt management. Does that make sense? It does, Rob.

So one other point to that is that if this card is placed in the program, then the husband's name will be on the contract as well. Let's do this. I've got to take a break. You stay right there. We'll finish this on the other side.

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Let's head right back to the phones. Before the break, we were talking to John in Illinois. He was calling on behalf of a married couple that he knows, where she has the majority of the cards in her name.

Her husband is on one of them. They're looking at putting these in debt management, which I like a lot. And he was wondering about the implications for their credit score. The fact that they're in a debt management program is not a part of the credit scoring algorithm, but the cards will be closed. And that, of course, has credit score implications. It would only flow through, though, based on who the account holder is and or an authorized user. John, you had a follow-up question. Go ahead with that.

I do, Rob. Thank you. So the question is, if this card that has the husband's name on it is put into the program, according to the debt management program, then the husband is then also liable for this monthly payment then. So that's the hinge point of this. Well, but he's responsible for it now, if his name's on the account, whether he's in the debt management program or not. Correct. Correct. But I'm just saying, most of the cards are in the wife's name. But if he puts, if he agrees to the program, then he's liable for paying all the rest of that monthly fee as well. Yeah.

I mean, I guess I'm not totally following you on that, though. I mean, so regardless of whether he's in the program right now, he's responsible for the whole balance. And they're asking for a minimum payment. And he's just as responsible today for that minimum payment, if it's a joint credit card, than his wife is.

They're both responsible for the full balance. And at a minimum, they have to pay the minimum payment. When that card gets moved into the debt management program, it's still with the original creditor, the debt management company is not buying it or taking it over. So he and his wife still owe the full amount to the original creditor, they're just going to pay through a debt management agency at a at a monthly amount that's probably very similar to what they're sending in today, if they're sending the minimum payment. And it's going to be passed on to the original creditor.

But it's going to be done at a lower interest rate, but nothing has changed. He's just as responsible under the debt management program as he is today without it. I understand that. So I guess I know the way to put it. So he'll be responsible for the whole ball of wax then. So whatever all those other cards and that one with his name on it, he'll be responsible for that complete payment in that management program as well, not just that card. Oh, I see.

No, I don't think that's right. Again, ultimately, in this case, now they're married. So then you've got laws that come into effect. You know, if she were to pass away, this marital assets, and that a lot of that depends on what state they're in, and so forth. So you'd have to talk to an estate attorney about who's ultimately responsible.

But I see what you're saying. No, I don't think that, you know, he is ultimately responsible. Because again, the responsibility with regard to who owes the debt is between the account holder or holders and the institution that loaned the money. The debt management company is just a third party that's in the middle.

And at any point, it could be pulled out of that if it needed to be. So I don't think he would be taking on any responsibility for those additional cards just because they were in debt management program along with the one that he's jointly holding. Okay. Yeah, I just wanted to clarify that because the coach in the program says, Oh, yeah, that your name is on the, let's just say contract as well. So yeah, you will, if the card gets put into the program, then you will also be responsible for the whole monthly payment as well, right?

Including that and all the other cards. So that was the question. Yeah, that's a little confusing to me.

It's an unusual situation. So I wouldn't say that I have a definitive answer on that. If they're not talking to ChristianCreditCounselors.org, I would at least get a second opinion. They're the ones that we work with. They've worked with hundreds and hundreds of our listeners. They're all believers. They're wonderful. And I would trust whatever they would say about it.

Perhaps they could do it under a separate contract for this one account, and then do the rest under a separate one. But I would perhaps get a second opinion if they're not already working with ChristianCreditCounselors.org. John, thanks for your call today. To Chattanooga, just down the road from me. Hi, Tracy. Go ahead. Hey, how you doing today? I'm great. Thank you.

Appreciate you calling. I just want to say you guys are wonderful. Oh, you're so sweet. Well, thank you. Well, we love serving you.

Thank you for saying that, though. I want to do three things. The first thing is I want to ask three questions and I'm gonna make it brief. Okay, and I've got two and a half minutes, so I'm just giving you a fair warning. Go ahead.

I'm gonna make it simple. One of the callers asked was talking about car protection insurance. You know, when your car break down, do you guys have somebody you recommend? We don't, unfortunately, so I would just read a lot of reviews, starting with the dealership that you are buying or have bought it from, but do a lot of homework before you get into one and read the fine print.

But unfortunately, no, I don't have a specific recommendation. Okay, well, thank you for telling me that because when I bought the car, they did put it up under a warranty, but I haven't read it, so I'm gonna do that immediately. The second question is I want to buy a house, and I went to two banks. They told me that my credit is good, but they told me my debt-to-income ratio was too high simply because I have a student loan. There's nothing else, no credit cards, no mortgage, no none of that stuff.

So what do I need to do? Well, unfortunately, there's not a quick fix to that because those debt-to-income ratios do count student loans. They're just looking at your ability to repay based on whatever obligations you have against the income that you have available, and they're looking at that in light of you taking on a major new obligation in the form of a home loan. The problem is if you don't fall into their guidelines, then you're into what's called subprime or non-qualified mortgages, which are available from some lenders. You'd have to look around for them, but the interest rates are much higher. You know, right now, interest rates are already high. I said you're going to probably be up over 10 percent, and I think what's even more important to me is the fact that they're telling you you don't qualify.

Usually, I like to be more conservative even than their debt-to-income requirements, so if they are saying you don't qualify based on that, I would take that as just an indication, Tracy, as much as you may not want to hear this, that you need to wait, rent, save, and pay down that student loan debt before you make this purchase. I got it, okay? I can understand that, so then just continue to put my eggs in a basket. Yes, ma'am. I think that's exactly right. Well, I didn't want to hear it, but I'm glad you told me. I'm going to take your advice and run with it. All right. Well, since you're a relatively new listener and I want to send you a gift, I'm going to send you a copy of Howard Dayton's book, Your Money Counts, and what it's going to give you, Tracy, is a good overview, a primer, if you will, of a biblical approach to managing God's money with regard to debt and investments and your spending plan and all of it, so you stay on the line. We'll get your information, and we'll put that in the mail straight to Chattanooga, and just know that when you get it, we're grateful for you being a listener, and it's just our way of saying thanks for being on the program today. God bless you. Well, folks, that's going to do it for us. Let me say thanks to my team today, Amy, Charles, Tahira, and Jim. We'll see you tomorrow. Bye-bye. Faith and Finance is provided by Faithfi and listeners like you.