Financial planning often focuses on retirement goals, tax strategies, and investment allocations, but experts emphasize that charitable giving should be an integral part of the process rather than an afterthought. According to financial advisor Aaron Katsman, many individuals express a desire to donate more but struggle to allocate funds toward philanthropy because it is not specifically included in their budgets.

Katsman highlights a common pattern in which charitable contributions are made only with leftover funds after covering monthly expenses like home repairs, tuition, or vacations. This approach typically results in little to no money being set aside for giving, despite good intentions.

Drawing from Jewish teachings, Katsman refers to Parshat Re’eh in the Torah, which commands opening one’s hand to support the needy, emphasizing that poverty will continue to exist in society. He cites the late Rabbi Jonathan Sacks, who explained that the Torah does not expect poverty to be eradicated entirely but insists that the presence of poverty should never justify indifference. The mitzvah of tzedakah, or charity, is portrayed as an ongoing obligation embedded within the fabric of life, rather than a response to extraordinary hardship.

This perspective challenges conventional financial advice that prioritizes saving and paying off debts before giving to charity. Instead, Katsman advocates incorporating charitable donations as a formal part of financial planning. He suggests that budgeting for philanthropy upfront, much like making mortgage or utility payments, builds a habit of generosity and can improve overall money management.

Katsman points to research in behavioral economics, particularly Nobel laureate Richard Thaler’s concept of “mental accounting,” which shows people are more likely to meet financial goals when funds are earmarked for specific purposes. Automating donations, such as through payroll deductions, can enhance consistency and reduce the feeling of scarcity that often prevents giving.

Clients who intentionally allocate funds for charity tend to feel more empowered to give and report fewer complaints about affordability in contrast to those who treat charity as an optional expense. Furthermore, integrating values like compassion and responsibility into budgeting can strengthen moral character and personal fulfillment, according to insights from Rabbi Aharon Lichtenstein.

Financial planners are encouraged to ask clients not only about numbers but also about the values their plans reflect. Katsman underscores that if tzedakah holds significance in one’s life, it warrants a dedicated “line item” in the budget. Making this a priority may represent one of the most meaningful financial decisions individuals can make, aligning resources with core principles rather than deferring giving indefinitely.