Despite Struggles, Hopeful Signs for Finances in Christian Households

Three out of four Christian households experienced stagnant or declining income levels during the past year. However, many of those households have managed to keep debt levels under control, according to results from the second annual View from the Pew, a constituency survey of 1,029 Christian households conducted during the first six months of 2010 by Christianity Today International, publisher of Your Church and Church Finance Today, and Maximum Generosity.

Only 23 percent of households saw their family's income increase from the previous 12 months. Meanwhile, as the U.S. economic recession continued, 44 percent saw their income stay the same and 33 percent saw their income go down.

Challenges with income did not necessarily result in higher levels of debt, however. The primary debt obligation for 64 percent of respondents was a home mortgage, according to the survey; only 35 percent of households reported car payments, and 70 percent said they actively pay off their credit cards in full every month.

In an encouraging sign for churches, 78 percent of those surveyed in the View from the Pew said they continue to give 10 percent or more of their income to local churches and ministries. When asked when they learned this practice, 60 percent said it was before age 30.

The View from the Pew asked participants to provide information about how the economy affected their household during the prior 12 months concerning employment, finances, debts, and giving/tithing. It was designed to provide a snapshot on the realities and attitudes of finances in Christian households around the country. Five significant themes emerged from the latest survey's results:

For many decades, many Americans expected to see their incomes increase each year. But that picture has dramatically changed. Positions have been eliminated, paychecks have gone away, pensions have gone down, and investment portfolios have been battered. The result is that only 23 percent of households saw their family's income increase from the previous 12 months. Meanwhile, 44 percent saw their income stay the same and 33 percent saw theirs go down.

This economic downturn is personal for many families. In the survey, 96 percent said they personally know people who lost their job in the last year; 44 percent know people that moved away to find employment; and 30 percent personally know people who lost their home through foreclosure. In any group of people there are always some with surplus, some that are stable, some that are struggling, and some that are sinking. It is important that those who have surplus or are stable look for active ways to help those who are struggling or sinking.

In the View from the Pew, the primary debt obligation for 64 percent of families is a home mortgage. Only 35 percent of households have car payments, and 70 percent of households actively pay off their credit cards in full every month. The other debts people carried included student loans (18 percent), medical bills (17 percent), home equity loans (15 percent), and/or family/personal loans (11 percent). A growing number of people are learning to actively eliminate debt, or avoid it altogether.