One of the most impactful moments I think I had as a teacher of personal financial stewardship was in all my years of coaching happened a few months ago. I had an opportunity to teach a financial literacy seminar to a group of high school students. A part of the seminar included an introduction to the power of compound interest along with the rule of 72, and what these young people’s lives would look near their retirement age if they invested consistently from a young age. I talked about Roth IRA, and what this vehicle could do for any individual regardless of their income level in positioning them to retire with dignity and generosity.
I asked if any of them were working, and crunched some numbers to show them how much money a one-time deposit of a certain amount would grow to become if they invested that after-tax amount in a good low-cost index fund in a Roth IRA. There was a 17-year-old student who earned about $2000 in 2017 and wanted to know what that amount could possibly become if invested and left untouched until the age of 65. One-time deposit at the age of 17, invested until the age of 65 in a good low-cost index fund compounded monthly at the average of 10% would result in the total of $238,235! She got the math. She saw the power of compound interest in action. She got something that most of us don’t get.
Albert Einstein considered compound interest as the eighth wonder of the world. He knew that those who understood it earned it while those who didn’t, paid it. If you have debt, then you are paying it. If you are debt free, and saving and investing wisely, then you are likely earning it. Back in my adolescent days, I tutored math to little kids at an afterschool program. Only if someone had taught me this principle when I was 15.
When I started working as a teacher right out of college at the of 22, a school administrator sat me down for 5 minutes and asked me if I wanted to contribute to a 403b plan. He didn’t really explain why I should do this or what this could do for me. Maybe he did explain and I just didn’t listen. Even though it wouldn’t have been very much, if I had just contributed $2000 at the age of 22, and left it until I was 65, it could accumulate into around $120,000.
As Christ-followers seeking to steward well for God’s approval, how are we to think and live biblically toward retirement? I don’t want to go too much about the concept of retirement itself. After all, while saving for future is biblical, the concept of retirement at the age of 65 is an invention introduced into our world history in the 1880s by Bismarck.
Biblically, however, we are taught to be wise and save for our future instead of devouring it all (Prov. 21:20). Joseph clearly practiced God-given wisdom when he saved during a time of plenty to prepare for a coming famine (Gen. 41). That is something that can easily be transferred to our lives, our productive years and not-so-productive years of old age. However, our Lord and Savior Jesus Christ also taught us in Luke 12:13-21 how not to save up treasures for ourselves but instead save up treasures toward God.
As a steward managing what the good Lord has given me to manage for his approval, I must confess that yours truly is still wrestling. I want to finish well. I want to provide for my family, want to be a blessing and grow to become more generous and sacrificial in my giving toward God, and toward eternal things that matter to the Lord. But the fight is real. I can only have one master, and the Lord asks me daily to offer myself as a living sacrifice, and not be conformed to the patterns of this world.
In the next several weeks, we will examine some practical and biblical ways to saving for our future. Join me on this journey as we strive to grow and mature as God’s stewards managing God’s treasures for God’s approval.
Are you ready to get started? Contact me at paul@jangfinancial.com if you want to help disciple your congregation as God-honoring stewards from a biblical perspective, or if you yourself want to grow as a steward seeking to practically manage the finances better to hear from our Lord upon his return, “Well done, good and faithful servant. You have been faithful over a little; I will set you over much. Enter into the joy of your master.” (Matthew 25:21, 23)
Questions to ponder:
1. How are the following passages like Proverbs 21:30, Genesis 41, as well as Luke 12:13-21 speaking to you?
2. Sometimes, we can overly spiritualize and not save anything for the future by speaking in the language of trusting God and trusting in God’s provision. On the flip side, we can just as easily save like the rich fool who saves for himself instead toward God. How is the Lord speaking to you?
Paul Jang
Pastor | Personal Financial Coach to Individuals & Financial Stewardship Ministry Consultant for Churches
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