Kids That Honor God With Money Pt. 2 With Matt Bell

Show Notes

We are all fearfully and wonderfully made, but we’re not all alike. And those differences dictate how we do a lot of things. Matt Bell joins us again to talk about how those differences can affect the way our kids manage money. 

Matt Bell is the managing editor at Sound Mind Investing and the author of several books on personal finance, including his latest, Trusted: Preparing Your Kids for a Lifetime of God-Honoring Money Management.

This is a continuation of a conversation we began in our April 10, 2023 program.

• Previously, we talked about teaching kids to earn, give, and save wisely.
• On this episode, we’ll talk about temperaments and how they affect the way we (and our kids) manage money
• Temperament is probably the most underappreciated factor that influences how we manage money, and then how our kids will end up managing money as well. In essence, temperament is our nature, our bent. It’s the way we naturally approach life. 
• Some people have a hard time saving, while others don’t. Some are very conservative and risk-averse with their money. Others are a bit more daring. 
• So it’s important to identify our temperaments and manage our inherent strengths and weaknesses. 
• Matt writes about four of these temperaments in his book. 
• FOUR MONEY MANAGEMENT TEMPERAMENTS
• 1. Sanguine: The sanguine temperament is that sort of likable, outgoing, charming life of the party sort of person. Financially, they tend to be naturally very generous, but they don't tend to like to use a budget. They would rather be out, doing things with friends than then crunching some numbers. You will probably never meet a Sanguine accountant!
• 2. Choleric: The Choleric temperament tends to be the person that's kind of the hard-charging type of person. Financially, they tend to be really good at setting and accomplishing tough goals. But they can also put too much trust in money. And they can also they're kind of task-oriented, and not so people-oriented. So they may have a tendency to kind of run people over in the pursuit of their financial goals.
• 3. Melancholy: Melancholy sounds sort of dour, but that's, that's the term for it. The melancholy temperament tends to be very detail-oriented, even perfectionistic. They're meticulous planners and are really good at using budgets. They can also succumb to fear of making a bad decision, which can make them slow to make decisions.
• 4. Phlegmatic: Phlegmatic are those even-keeled steady plotters in the world. They tend to be savers of money — and stuff. If you have a closet full of stuff and a bank account full of a lot of savings, you might be phlegmatic. They're very reliable, steady workers. However, their saver mentality can make it hard for them to give.
• A person’s temperament will usually start to emerge in kids at around 12 or 13 years of age. That is when Matt recommends taking an assessment, which is included in his book. 
• From there, it’s good to become acquainted with the strengths and weaknesses of your temperament and those of your children, so you can better bring your financial management habits in line with God’s Word. 
• Matt also explains the importance of cultivating an eternal perspective of money and how to accomplish that. 
• Learn more about Sound Mind Investing at SoundMindInvesting.org.

On this program, Rob also answers a listener question: 

• How can you begin rebuilding retirement savings after having used up savings before retirement? 

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 give as we expand our outreach.