Pastoral Counseling about Personal Finance

A pastor’s task list is quite diverse. The pastor must be a preacher and teacher, evangelist and disciple maker, visionary leader and counselor. Not only do congregations have high expectations, but those who educate pastors also have high hopes for their students. Biblical scholars urge pastors to exegete scripture in the original languages of Hebrew and Greek. Theologians urge them to stay current in theological discussions. Experts in the various pastoral arts—evangelism, discipleship, worship, preaching, care, leadership—urge pastors to shine in their areas of expertise.

Let me add my voice to the cacophony clamoring for a pastor’s attention. Regardless of any other gifts, an effective pastor must excel in personal finance. For once, one of my admonitions is supported by careful research.

Research

Dr. Ryan Halley wrote a doctoral dissertation in consumer economics at Texas Tech University in 2005. The title was “A Survey of Clergy Practices Associated with Premarital Financial Counseling.” Halley reported that more than three out of four weddings were held in a religious setting. Ninety-six percent of the clergy in Halley’s study provided formal premarital counseling before officiating at a wedding. These pastors spent an average of 1.2 hours on personal finance issues in the sessions. Only two of the 223 pastors who participated in the survey did not discuss any aspect of personal finance prior to the wedding.

The top six personal finance topics included in the premarital counseling sessions were budgeting (59.5%), managing debt (48.7%), saving (36.4%), spending (25.1%), goals/planning (20.5%), and who will manage the money (20.5%). The clergy in this study were asked how frequently they covered specific issues and they answered “often” or “very often” to the following: spending versus saving (86.2%), lifestyle issues (74.7%), debt (72.4%), separate versus joint accounts (71.9%), and one income versus two income families (71.4%).

Since the ability to manage personal finance is a predictor of marital success, Halley correctly identified clergy as frontline agents for social stability through their counsel and teaching. I’ve had numerous conversations with pastors who reported that money is a major issue in marital conflict. Both the research and anecdotal stories indicate a pastor’s knowledge of personal finance issues better enable him or her to effectively serve those who look to him for guidance. The effective pastor will be able to help people with personal finance concerns.

Reflection

While that is a worthy goal, we must acknowledge the complexity of the personal finance world. For example, when talking with young adults anticipating marriage, key subjects could be issues like educational debt, starting a career, or buying a house. For mid-life adults forming a blended family, however, the issues may include cash flow challenges (such as child support) or whether to have separate bank accounts. Older adults who marry must consider estate planning matters, the potential effect of the marriage on retirement income, and health care expenses. The diverse details of personal finance may seem overwhelming at times, but the more a pastor understands, the better she will be able to counsel.

In Halley’s study, one of the reasons pastors gave for why they did not discuss personal finance issues in premarital counseling was that they felt inadequately prepared. Almost one-third of the clergy in that study reported receiving no formal instruction in personal finance. Most thought that, at best, their educational background provided only “fair” preparation to provide assistance on personal finance issues.

For the pastor, the study of personal finance must be self-directed, since it receives minimal or no attention in most clergy educational systems. This is an ongoing endeavor; it’s not necessary to learn it all at once. A pastor can expand his understanding as issues arise. The benefits of this continuing education will be both personal and pastoral: the pastor’s own finances will be strengthened, and he or she will be better able to help others.

The effective pastoral counselor will recognize when it is prudent to refer. This is true for all pastoral counseling issues, not just personal finance. In Halley’s study, 91.1% of the pastors were “willing” or “very willing” to refer couples to a personal finance expert. The critical issue here is to whom the pastor will refer the couple. At one point in my life, a church leader connected me with a person whose agenda was more to sell me a financial product than to help get my financial house in order. I was not well-served by that referral. When a pastor cannot provide the needed financial counsel, the initial effort should be to connect the parishioners with someone whose expertise is financial planning or financial education, not merely those with something to sell.

The economic challenges of the past couple of years have put families, including pastoral households, and congregations in a fragile economic position. Clergy who make the effort to be knowledgeable about the basic principles of personal finance will be better equipped to provide a much needed ministry.

Originally published by Pensions & Benefits USA.