Welcome to the Glossary. Here’s where we define all of the terms that we use, and our definitions may be a twitch different from the ones you’re used to. We refer back to the Glossary often and it’s meant as a reference tool, enjoy!
5 CAPITALS: A way of categorizing all the resources that you steward. They are: Spiritual, Relational, Physical, Intellectual and Financial (in that order). Knowing which you’re dealing with will help you prioritize and invest wisely.
ABRAHAM: This legendary stud built the largest home-based economy we know of in the Scriptures and became the Biblical standard for what family leadership is all about. In Abe’s name: uphold the righteous patriarchy!
BAD DEBT: Owed money tied to a depreciating asset (like a car) or no asset at all (credit cards). Usually has a high interest rate, and has to be dealt with pronto to move toward scripturally informed stewardship.
BUDGET: A plan for the income streams with which you have been entrusted. Click the link for great detail, but a budget is a starting point for obedience – we budget so that every dollar that comes our way could be put to work!
CONSUMPTION: Spending resources on something that has no lasting value. Contrasted with investing (see below), it undermines your family vision and asset base. Also, historically, a synonym for tuberculosis.
CHURCH: A local 501c3 organization that can usually help you meet Jesus, but can rarely help you steward money. It can be a cool place where God’s people congregate, so support it and look for places to serve others through it.
GOOD DEBT: Owed money you’re using as a tool, as a part of a wise investment strategy (and due to favorable market opportunities). Has an interest rate below your expected rate of return, and is for an appreciating asset.
INVESTMENT: When any capital is expended to increase the resources under your stewardship. Can mean deploying less valuable capitals to acquire more valuable capitals, or using one capital to grow more of it.
MONEY: The least valuable resource, this persnickety fellow comes in and out of your control every day and acting like it has no power (both to bless and to take you down) doesn’t help you steward it. Get wise, say no to greed, and manage it!
SPENDING: When a resource leaves your control. A spent resource is one for which you have no option to actively manage.
STEWARDSHIP: Management of resources that are not yours, but which with you have been entrusted. (At AW, we talk a’plenty of stewardship of God’s property because the development of this skill and outlook is foundational to wielding the tool of money with mastery, using it to build an Abrahamic family, without giving it an ounce of your love and worship.
SUMMIT: This is an intentional getaway when a family-building couple reviews their plans, goals, and overall strategy. It’s a big deal and we think it’s a must.
PRODUCTIVE HOBBY: You are engaging in one of these if you’re doing something that you find enjoyable and relaxing, and getting paid – either directly for what you’re doing or indirectly by monetizing the knowledge gained through your recreation.
LUXURY: Spending on non-needs, that focuses on ‘pleasure’.