Build Family Wealth and Happiness.

Fill out this form to receive our free 39-page Family Wealth and Happiness guidebook. You'll also receive periodic updates from me to help you take your family to the next level.

November 6, 2023

An Alternative to 10% Giving for the Modern Family

An Alternative to 10% Giving

This post may contain affiliate links or links from our advertisers where we earn a commission, direct payment or products. Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. Information shared on this site is for entertainment purposes only and should not be considered as professional advice.

The idea of 10% giving has been around for thousands of years. Traditionally this has been seen as a donation to your local house of worship. 

While giving and growing one’s religion is important, the impact on non-religious causes and charities around the world is also a crucial consideration for our generosity. 

Giving to our family, friends and neighbors in need should ideally make its way into our planning as well. Depending on your situation, these could be the most important people in your life. 

So, what’s the right answer when we’re talking about 10% giving?

The truth is there is no one right answer when it comes to how you give away your money. Giving is very personal and unique. 

To offer you some inspiration on your family generosity journey, I’m going to share how our family evolved from not giving much to re-writing the script on 10% giving. 

From 1% to 3% Giving

Around five years ago, we became mortgage-free and our net worth crossed over $500,000 for the first time. This was a huge milestone for our young family because when we got married, we had a negative net worth

We felt incredibly happy knowing that our financial house was finally getting in order. This type of financial security and wealth-building practice made us feel like we were headed in the right direction. 

I had an overwhelming sense of gratitude for our position and a desire to give back. So I decided to calculate how much we were giving back through charitable giving and gifts to our local church. 

My quick math showed me that we were giving away less than 1% of our after-tax income

This realization made me feel like we could do a lot more. 

The following year, we made a goal of increasing our charitable giving to 3% of our income. Given that this was above the average of giving percentage for our income level, we felt like this was an attainable goal to ladder up to. 

By increasing our income and lowering our expenses, we factored in the new line items for our monthly budget. We automated the process by giving to our church and favorite charities every month. This way, we wouldn’t forget to donate!

When the year ended, we gave around 3.5% of our income to charity. It felt like this action was allowing us to progress toward the true wealth we wanted for our family. 

From 3% to 5% Giving

After increasing our charitable giving and finding charities that aligned with our values, we decided to ladder up to 5% the following year. With the blessings we’ve been given in our lives, it felt right to give back even more. 

We decided to modify our giving to follow a structure of local, national and global. 

  • Local Giving: Contributing to organizations that provide a real impact in the community where we live. 
  • National Giving: Supporting charities that are fighting an issue that affects our entire country. 
  • Global Giving: Giving to nonprofits that are working on important issues that make the world a better place for all of us. 

With this new strategy, we got excited about researching organizations through sites like Charity Navigator. This helped us to understand each of the charity’s backgrounds and how much of our donations were going to the cause we’re passionate about. 

As our financial lives continued to prosper, our giving amount did as well. We hit our goal of 5% giving that year!

Related ContentCharities for Children: 10 Organizations Giving Kids a Better Life

From 5% to 10% Giving

Hill Family

Although we were enjoying giving more to causes we cared about, we did struggle with giving away our money and not seeing the impact it was making. This may appear to be a selfish thought, but it was (and is) a real thought of ours. 

So for our next goal, we decided to increase up to 10% giving, but do it in a new way: 

  • 5% Charitable Giving
  • 4% Family Giving
  • 1% Random Giving

We kept consistent with our 5% charitable giving but thought it would be fun to give to others like our family and our neighbors. 

Family and Friends Giving

I always wanted to be the uncle who gave my nephews and nieces nice gifts. Or the guy that would go to the wedding and give a big cash gift to the happy couple. 

That’s what this new 4% category has allowed us to do. We give away 4% of our income to our family and friends in the form of gifts and cash. 

When my nephew expresses an interest in learning how to invest in the stock market, guess who is ready to buy him his first ETF? We are. 

It’s a lot of fun!         

Random Giving

There’s an early ’90s movie called My Blue Heaven where the main character played by Steve Martin is a very generous tipper. 

I always thought that was so cool. Giving out big tips to people working in the service industry as a way of expressing our gratitude was something I wanted for our family. 

So we decided to give away 1% of our income each year randomly. 

We’ve done this for the past few years and it is FUN! 

Last year, I gave a $100 tip to the workers at my favorite donut shop. They were elated with the gift! They both had huge smiles and gave each other high fives. It was awesome. 

Is It Okay To Not Do 10% Giving?

Yes, of course! Just like investing and personal finance in general, giving is super personal. There is no one right way to give. If you’re able to give anything, whether it’s your money, time or voice, that’s beautiful. 

We just got to a point in our lives where we felt like we could do more. So we did. We learned a lot about ourselves, our values, and our preferences along the way. 

Over the next few years, I bet our giving methodologies will change even more. It’ll be a process of discovery and I think we’ll have a lot of fun figuring it out together. 

The best part of all is that our two kids are a part of the journey as well. They save a portion of the money they earn each month and give to their favorite charities, family members, friends or even just randomly like we do. 

We hope our example allows them to discover their own special path for giving. This way, we create a legacy of generosity that carries on well past our time. 

If you're looking to instill habits of wealth and happiness in your children, check out my course Make My Kid a Millionaire. It's a 10-step course dedicated to helping parents create generational wealth for their kids.

What do you think of our alternative spin of 10% giving? How do you prefer to give? 

Please let us know in the comments below. 

Andy Hill

Andy Hill, AFC® is the award-winning family finance coach behind Marriage Kids and Money - a platform dedicated to helping families build wealth and happiness. With millions of podcast downloads and video views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world. When he's not "talking money", Andy enjoys being a Soccer Dad, singing karaoke with his wife and relaxing on his hammock.

Leave a Reply

Your email address will not be published. Required fields are marked *

Marriage Kids and Money Podcast

About Marriage Kids & Money

The Marriage Kids and Money Podcast is dedicated to helping young families build wealth and happiness.

With over 400 episodes and counting, we share interviews with wealthy families, award-winning authors, and personal finance experts to help you find your version of family financial independence.

Scroll to Top