Savings Ratio Smoothing

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Derek Thompson: The savings advice that most of these authors give which is really at variance with what economic theory would tell you to do. He says instead of scrimping and scrounging and struggling one year and then kind of overindulging the next, maybe life would be more pleasant on average if you consumed a similar moderate amount in both periods. "I think this is 40 widespread common wisdom that you should be saving 10 to 15% of your income," he said.

Are Christians called to navigate their finances differently from everyone else? Are the oft-repeated directives to save aggressively and avoid all debt either scriptural or wise? Is it possible that spiritual wisdom and practical wisdom are sometimes one and the same? Join David and Curtis in this excellent discussion with James Choi, Professor of Finance at Yale. As a Christian and a behavioral economist, James brings both spiritual and practical wisdom to the area of personal finance and exposes where some of our most popular financial gurus might be giving us poor advice.

Show Notes:

-Derek Thompson (The Atlantic) - All the Personal-Finance Books Are Wrong

-Greg Rosalsky (Planet Money) - An economist studied popular finance tips. Some might be leading you astray

-Why I am a Christian (James Choi)

Follow Curtis’ work at RedeemingBabel.org

Produced by Kris Carter