“A good man leaves an inheritance to his children's children, but the sinner's wealth is laid up for the righteous.” (Proverbs 13:22). That verse seems pretty straightforward, and yet it leaves several questions unanswered. Exactly what should we leave to our kids - how much, and when? Ron Blue joins Rob West today with the answers. This is Faith and Finance - biblical wisdom for your financial decisions.
Financial teacher and author Ron Blue literally wrote the book on this important topic. It’s called Splitting Heirs: Giving Your Money and Things To Your Children Without Ruining Their Lives.
- We’ve had calls from folks who even take out insurance policies just so they can leave something to their children, who in many cases are already grown up and out of the house. Does Proverbs 13:22 mean we should always leave money to our children and grandchildren?
- No. Leaving money to your heirs in many cases may be a bad idea. It's not a command, it's a principle. It's saying when you accumulate wealth and you've done a good job with it you'll end up leaving it for grandchildren. But it doesn't mean you're commanded to build wealth for your grandchildren.
- Are there times when we shouldn’t leave money to our kids?
- If you believe God owns it all, the last decision you make as a steward is, who gets His resources? So, if you believe the resources will be wasted in an ungodly way, don't leave it to them. Give wisdom first, and then money.
- What should we ask ourselves when contemplating leaving money to our kids?
- What's the worst thing that can happen? And how likely is it to happen, and what are the consequences of it?
- That means it's OK that we don't treat all of our heirs equally, right?
- If you love your children equally, you'll treat them uniquely, because they are unique individuals. God doesn't treat us equally, because he knows what's best for us.
Next, Rob answers these questions at 800-525-7000 or via email at askrob@FaithFi.com:
- Does a whole life insurance policy make sense for being your own bank if you are age 50, have about $45,000 in retirement savings and about $500 surplus a month?
- Should you invest $1800 surplus income a month into a Roth, and IRA or savings, if you currently max out your 401k contributions and have about $10,000 in liquid savings and no debt?
- What should a 26 year old wanting to buy a house in three to five years invest in for the downpayment?
Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at FaithFi.com where you can join the FaithFi Community, and even download the free FaithFi app.