The Amish have a unique relationship with money that is shaped by their faith and beliefs. As a traditional Christian group that values community, family, and simplicity, the Amish approach money in a way that reflects those values.
Do Amish use money?
Yes, the Amish do use money, despite their rejection of many modern conveniences. The Amish participate in the economic system around them by selling goods and services. However, they place limits on how money can be used based on their Ordnung, or set of community rules.
The Amish use money to purchase necessities that they cannot make or grow themselves. These include fabric, tools, household items, bulk food, and some modern conveniences like refrigerators or stoves. The money earned from their businesses and farm products allows them to pay for these items.
However, the Amish do not accumulate wealth or live extravagantly. Luxury goods, vacations, fancy cars, and large homes are not permitted. Life focuses more on family, community, and faith rather than material goods.
Do Amish have bank accounts?
Most Amish have simple bank accounts to deposit earnings and pay expenses. Accounts are typically held at local community banks or credit unions. However, they do not use the accounts for long-term investing, loans, or interest-bearing accounts.
The Amish avoid going into debt, so they do not take out mortgages or personal loans. Credit cards are also not accepted. All banking is done in person with cash or checks. Online or mobile banking is off limits.
The Amish do not buy commercial insurance policies either. Instead, they self-insure by relying on support from their church community in times of illness, disability, fire, or other losses.
How do Amish make money?
There are a variety of ways that Amish make money while adhering to their faith’s guidelines. Some of the most common occupations include:
- Farming – Growing crops, vegetables, livestock to sell at markets
- Construction – Building homes, sheds, and doing repair work
- Furniture making – Crafting high-quality wooden furniture for sale
- Quilting and sewing – Making quilts, clothing, and other textile goods
- Food production – Baking, canning, cheesemaking, etc. to sell goods
- Crafts – Making items like baskets, toys, leather goods to sell
Amish businesses and farms tend to stay small-scale and family-run. Some may hire additional non-Amish workers to help meet demand. The Amish do not incorporate or franchise their businesses. The goal is to provide for their families, not aggressively grow profits.
Farming
Many Amish remain in agriculture as it allows them to be grounded in faith and community. They grow crops, vegetables, and raise livestock to sell. Popular products include milk, eggs, produce, baked goods, preserves, and organic meat.
Construction
The Amish are excellent carpenters and builders due to their craftsmanship and experience working wood. Amish construction crews are hired to build barns, sheds, homes, and complete remodeling projects in their communities.
Furniture
Handcrafted Amish furniture is highly valued for its quality and attention to detail. Their beds, tables, chairs, hutches and more are mostly made from hardwoods like oak, maple, and cherry. Furniture making remains an important source of income.
What do Amish spend money on?
While rejecting excess, the Amish do have regular expenses to support their families and community. Some common areas where the Amish spend money include:
- Food – Bulk dry goods, canned goods, vegetables, meat
- Clothing – Fabric, shoes, hats, coats for handmade plain clothing
- Transportation – Buggies, horses, wagons for travel
- Fuel – Propane, kerosene, diesel for lighting, heating, cooking
- Medical – Doctors, dentists, prescription drugs
- Property – Land, livestock, farming and woodworking equipment
- Taxes – Income, property, sales taxes
- Travel – Transport costs to visit other communities
Spending is prioritized on needs rather than wants. Shopping occurs within the Amish community to support their local economy. Budgets are set by bishops and deacons who provide guidance on proper spending habits.
Do Amish pay taxes?
Amish pay the same taxes as the rest of American citizens. They pay federal and state income taxes, property taxes, sales tax, payroll taxes for employees, and other required taxes.
The Amish do not pay social security taxes as they are exempt as part of being self-employed in agriculture. They also do not collect social security benefits. Amish instead care for senior members through church assistance or family support.
Some Amish choose to practice tax resistance and avoid paying certain taxes that support military spending. These individuals may face IRS consequences like property seizure or bank account levies.
Do Amish use credit cards or have debt?
The Amish avoid going into debt, so they do not use credit cards or take out mortgages/loans. Borrowing money and owing interest goes against their religious values.
Homes, land, and farms are bought with cash savings. Credit cards are seen as enabling a lifestyle of overspending beyond one’s means. Debit cards may be used in some communities to withdraw cash.
If an emergency expense arises, the Amish church will take donations to support the affected member. Family and neighbors also pitch in until the person can repay them.
Do Amish have insurance?
Amish do not buy private insurance policies. They view commercial insurance as undermining God’s providence and demonstrating a lack of faith. Instead, the Amish self-insure by relying on their community for assistance.
In cases of injury, disability, fire/storm damage, death, and other losses, church members will raise money to help cover costs. Amish barn raisings are a good example, where a destroyed barn is rebuilt by volunteers.
Some exceptions exist in cases where insurance is legally required. For example, liability insurance may be purchased to cover commercial vans used for Amish businesses.
Do Amish receive government assistance?
Most Amish refuse to collect social security or accept other government welfare programs. They view it as their religious duty to care for members without outside aid. Relying on the government would go against values of self-sufficiency.
In rare cases, Amish may utilize government assistance like subsidies or grants for small businesses, disaster relief funds, or disability payments. But this is generally avoided if church or community support is available.
The Amish pay into the programs through taxes, though they will not personally collect the benefits later in life. Retirement is subsidized through family support and modest church pensions.
Do Amish have wills?
Amish make wills to direct how their property and assets should be distributed after death. Wills ensure that the estate is divided equitably among heirs according to Amish tradition.
Wills are kept simple. Amish typically bequeath most assets directly to a spouse. Remaining property is divided equally among children, with sons twice as much land as daughters. Gravestones, flowers, and other funeral directives are outlined.
Amish usually do not establish complex trusts or distribute assets before death. Legal services are secured from local professionals to draw up wills and handle estates.
Do Amish have pensions?
There are no Amish pension plans like 401k’s or individual retirement accounts. Those go against values of self-sufficiency and separation from worldly systems.
In old age, Amish rely on family support, community assistance, income from small businesses, savings, and modest church pensions. Married couples pool resources in retirement.
Some Amish churches provide small monthly pension payments to assist the elderly. Funds are collected through tithes and may total a couple hundred dollars a month.
Retired Amish typically remain engaged in light work like gardening, cooking, childcare and handicrafts. Working keeps the elderly active and contributing.
How do Amish prepare financially for retirement?
Without modern pensions, Social Security, or retirement savings plans, the Amish prepare for retirement in a few key ways:
- Pay off all debts so expenses are low
- Build up cash savings over time to have funds available
- Purchase farmland that can be leased out for income
- Develop rental properties to generate steady rental income
- Own business assets that children can take over
- Reduce living costs by moving in with children
- Have many children who can provide direct financial support
The Amish remain active in cottage industries and work as long as health allows. By living debt-free and low-cost lifestyles, their money goes further in retirement.
Do Amish pay into Social Security?
Amish are exempt from paying Social Security and Medicare taxes if they are self-employed in agriculture or meet other exemption criteria. They also do not receive Social Security benefits later in life.
The exemption was established in 1965 out of respect for Amish cultural values. Amish do pay federal and state income taxes and all other applicable payroll taxes.
Some Amish are not exempt if they operate non-agricultural businesses and have non-Amish employees. These employers must pay half of Social Security taxes for workers and withhold the other half.
Self-employed Amish may opt to pay into Social Security if they wish, but this is extremely rare since it violates their beliefs. Social Security will be repaid to them if contributions were made in error.
How are elderly Amish supported without Social Security?
Without Social Security or pensions, Amish support their elderly through:
- Family financial assistance
- Small monthly pension payments from the church
- Community generosity and caregiving
- Continuing to work as long as health allows
- Living frugally and debt-free
- Moving in with adult children
- Relying on income from rental properties or businesses
Remaining active and contributing to family life gives Amish elders purpose and dignity in old age. They see caring for the elderly as a community responsibility, not just the government’s role.
Do Amish save money?
The Amish do save money, often keeping significant cash reserves. However, saving looks different than in mainstream American culture.
Saving is a practical way to purchase land, invest in business equipment, and pay for emergency needs without borrowing. Money is saved at local banks and kept at home in small amounts.
Amish do not put money in investments, stocks, bonds, or high-yield accounts. Saving is for needs rather than profit through interest or investment gains. Amish also donate generously which limits large accumulations of wealth.
In retirement, the elderly often distribute or gift funds to assist their children. The goal is to live modestly and leave an inheritance, not hoard.
Why Do Amish Save Money?
The Amish save money for reasons such as:
- Avoid debt and self-fund major purchases
- Pay medical and household emergency expenses
- Purchase farmland, animals, and equipment
- Build up inheritance to distribute to children
- Support parents in old age
- Pay for funeral and burial costs
Savings provide stability and self-reliance in case of illness, disability, or other disruptions to family life. It reduces dependence on others.
Where Do Amish Keep Their Savings?
Amish tend to keep savings in the following places:
- Local bank accounts
- On hand as cash at home
- Buried around property (rare)
- Hidden in the home
Bank accounts are used to protect life’s savings from theft or property loss. Money kept at home is limited for small incidental needs. The Amish do not invest in stocks, bonds, or retirement funds.
How much money do Amish have?
It is difficult to estimate average Amish wealth, but their net worth tends to be modest yet stable. The typical Amish family has the following assets:
- 40-80 acres of farmland worth approx. $500,000
- $50,000 to $100,000 in savings
- Carpentry, quilting, or other small business tools and equipment
- $10,000 to $30,000 equity in their home
- A few dairy cows, draft horses, chickens, and other livestock
Amish wealth centers around farmland, cash savings, small businesses, and home equity. Luxury spending is discouraged, so wealth does not accumulate despite industrious work.
Some Amish have several million in assets, but this is less common. Wealth inequality is limited, so most Amish families are similarly situated. Geographic variations in land prices impact net worth.
Do Amish struggle financially?
While the Amish avoid public assistance, some do face financial struggles from time to time. Reasons include:
- Medical bills from accidents or illness
- Natural disasters that destroy property
- Poor crop yields that reduce farm income
- Limited employment options to make ends meet
- Supporting many children on modest incomes
- Paying private school tuition costs
To overcome setbacks, Amish rely on church assistance, borrowing from family, increased work hours, and living more frugally. Some benefits like subsidized healthcare for children are accepted.
Bankruptcy filings are rare due to social disapproval. An Amish advisor, deacon, or bishop will consult on debt problems before that point. Financial issues are addressed through community support and accountability to prevent bankruptcy.
Do Amish have financial advisors?
Amish do not utilize financial advisors in the mainstream sense. They avoid investments, insurance, retirement planning, and complex financial products that advisors provide.
However, Amish bishops, church leaders, and family heads do guide decisions related to budgets, spending, asset purchases, and debt avoidance. Advice is grounded in Amish values of stewardship and modest living.
At times Amish may consult local accountants on tax preparation or estate planning attorneys to draft wills. Legal and tax expertise supplements the financial guidance of church leaders if specialized knowledge is needed.
Ultimately Amish make financial decisions based on biblical principles and community ordnungs. Financial matters reinforce values rather than maximize monetary gain.
Conclusion
The Amish approach money as a tool to support their families and community rather than accumulate for personal gain. While participating in the economic system around them through small businesses and entrepreneurship, they adhere to religious values of humility, contentment, and separation from worldliness.
By using money selectively, limiting spending, avoiding debt, and providing communal support for those in need, the Amish have found a balanced way to interact with modern economic realities while holding fast to their spirituality and traditions.