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A study by the American Psychological Association shows 61% of Americans felt “very” or “somewhat” stressed by money in 2021, second only to stress from work at 66%.

It’s the kind of stress that can take a heavy toll — physically, emotionally and spiritually, says the Rev. John Peterson, vice president of stewardship and education at the Florida United Methodist Foundation.

“Clergy are not exempt from that,” he said.

For many pastors, the worry begins at the start of their ministry, with student debt accrued from undergraduate and seminary studies. Others face debt from financial tools they relied on while in school, like credit cards.

That’s coupled with lower salaries than many private-sector jobs provide. The starting salary for a United Methodist elder in the Florida Conference is $46,100, while the base salary of a certified public accountant in Florida is $73,389, according to Indeed.

Other financial challenges include a housing market where prices are rising faster than in any other U.S. state and a nationwide inflation rate that reached its greatest peak in 39 years.

But Florida Conference clergy don’t have to go it alone. Peterson spends much of his time working with pastors on their financial planning — at no cost to them.

And in 2019, the foundation launched Fresh Start, a debt consolidation loan program that is helping clergy get on a fast track to financial wholeness. Since its inception, a little more than $325,000 has been loaned to 10 pastors.

Now, a new round of funding from the Florida Conference and Wespath Benefits and Investments, which handles pensions and benefits for Methodist clergy and lay employees, is helping expand the program so more clergy can be on better financial footing.

“It’s not necessarily a debt reduction program,” Peterson said, “but rather it’s a way, if we can, to restructure their situation, to bring complete financial wholeness to them.”

New territory for clergy wellness

Fresh Start works by providing loans to consolidate certain types of debt at a low-interest rate, currently 1.5%. That frees up significant cash for participants.

Similar private-sector services offer rates ranging from 5% to 36%. And doing nothing, such as keeping a balance on a credit card, has its own costs, with an interest rate of more than 17%, according to Federal Reserve data.

Fresh Start is more than debt consolidation, however. Participants must also have ongoing financial counseling with Peterson. The combination means clergy can transform their financial situation.

As that happens, there is enthusiasm on both sides of the process.

“It’s exciting. It really is,” Peterson said. “It’s exciting to know that we’re partnering with them confidentially through this phase of their life.”

To date, the program has been a success. No participants have defaulted on their payments, and loans terms have remained essentially the same.

“We’ve not had to really modify the terms of any of this,” Peterson said. “They’re all current, and they’re all moving toward wholeness.”

Initial funding for the program totaled $300,000, with the foundation investing $200,000 and Wespath adding a one-to-two match of $100,000.

In September, impressed by the progress so far, the conference provided $100,000. Wespath also increased its investment, contributing another $50,000 and pledging additional matching funds up to $250,000.

Craig Smelser, conference treasurer, said the conference funds came partly from savings in overhead costs during the pandemic.

Since joining the staff as controller in 2008, Smelser says the connectional response to clergy financial issues has evolved. Previously, the conference referred clergy to the United Methodist Connectional Federal Credit Union for help or gave general advice on what to do.

“But as a far an organized program where (clergy) receive not only an opportunity to consolidate their debts, but also the coaching they need so they don’t fall back into the same situation … this has been the best that we’ve done at this,” Smelser said.

Growing response

Wespath’s investment is an extension of the pension and benefits services they provide clergy.

“We see the well-being of clergy overall, including their financial well-being, being a key part of our mission,” said Dale Jones, Wespath’s managing director of church relations.

The agency decided to fund Fresh Start after seeing the success of similar debt refinancing programs offered by the Preachers’ Aid Society of New England, United Methodist Foundation of Western North Carolina and Iowa United Methodist Foundation.

“It’s not necessarily a debt reduction program, but rather it’s a way … to restructure their situation, to bring complete financial wholeness to them.” — Rev. John Peterson

Wespath has also provided seed money for other foundations and conferences to explore launching new financial assistance programs as part of its Clergy Financial Well-Being Initiative, funded by a Lily Endowment grant.

As initiatives for improving clergy financial wellness spread nationwide, Jones is thankful the foundation took the initiative to respond to needs of clergy in Florida.

“There’s some degree of risk and unknown, I’m sure, when (the foundation) first entered into it,” Jones said. “We’re just really grateful (the foundation) was willing to see this as a ministry opportunity and it needed to respond to it.”

Modeling stewardship

As leaders of their respective ministries and communities, clergy face many demands. Minimizing financial stress enables them to focus more energy on their calling.

“A clergyperson can be far more effective when they don’t have the pressures of personal finances weighing upon them as they’re trying to make decisions related to their ministry,” Smelser said.

As a pastor who has experienced the stresses of ministry, Peterson agrees. He also says church stewardship improves as clergy better manage their personal resources.

“You’re educating them, so that at the end of the process, they’re going to be better stewards of their resources,” Peterson said. “And my hope is also better stewards of being able to lead the resources of our churches.”

And when it comes to intentional conversations with church members on what it means to be a good steward, Fresh Start clergy can speak candidly as role models for their congregations.

“It enables the pastor to be able to speak to their congregation about stewardship … with integrity,” Smelser says, “because they also are in a position, now, where they can be better stewards of the resources God has blessed them with.”