Why The Church is the Best Place for Financial Education
Is it just me, or is anyone else noticing that the gap in basic financial education is widening more and more? Perhaps it's because this is a topic I'm focused on and passionate about. And I admit, I do geek out about this stuff, but I'm not wrong in believing that basic financial knowledge is for everyone, and those who lack it are bound to suffer for it.
Like you, I am continually baffled at the reality that schools do not teach basic financial management. Some do, but a majority do not. I've stopped hoping this will change. Frankly, I don't believe it's the answer to the financial education need. The best place for all education starts in the home {family], and the one institution that's still fighting for the family is The Church. As a Christian man belonging to a community of believers [Church], I have become a better husband, father, son, friend, and overall a better person because of the Biblical principles I was taught and consistently encouraged to live out.
Financial Education from the World’s Perspective
As a financial coach, I'm often asked for referrals for different financial services people need. I have one general piece of advice that I give people whenever I refer them to someone. "Always consider the motivation behind any advice you receive." When the advice you receive stands to greatly benefit the advice giver, the advice may be incentive-driven. In other words, the person you get your advice from may be telling you the information that will make them the most profit.
The primary source of financial education and financial advice comes from financial institutions. A Google search for "learn about personal finance" shows three of the top four results are investment firms. I'm talking about Yeildstreet, Fisher Investments, and Goldman Sachs. These are big institutions that make a majority of their income from selling you financial services. Might their advice be motivated by how much or what kind of investments they offer you? No doubt.
The biggest problem with financial education from institutions is their worldview. Growing your wealth and making you rich is the end goal of every investment firm. I do not believe wealth is evil or wrong. However, I believe that wealth is not the end goal in life but rather a means to an end. As a Christian, I am to use wealth to do good and to serve the purpose God has given me. Because these institutions lack a Biblical worldview, their motivation is based on the wrong measure of success, which stirs up greed, selfishness, and a desire for more.
I would be remiss not to mention that some financial investment firms have a Biblical worldview and operate by different standards. I have a few that come to mind as I write this, and I often refer people to them. But they are not the prominent and influential firms that spend millions or billions on marketing to get the consumer's attention, and they do not serve a large swath of our population.
The Church's Role in Financial Education
The reason the Church is the best place for financial education is that it possesses God's Word. In God's word, we find true financial knowledge and wisdom. God has put His Biblical financial principles throughout the books of the Bible to show us how to manage wealth in a healthy way. It shows us how to spend wisely, save and invest diligently, avoid debt which is slavery, and give generously, which increases our joy and fulfillment. Best of all, we can trust the advice because it is from God who loves us and works all things for our good.
Unfortunately, there's been a significant amount of teaching in the Church about money that's just plain wrong. The Bible doesn't teach that poverty is piety or that asceticism leads to a higher state of spirituality. These teachings, though a part of Church history, are a misinterpretation of God's word. It is man's attempt to justify himself through false humility and works.
God isn't poor and isn't interested in us being poor. God is extravagant in his blessings and lavishes his goodness on those whom He loves. Therefore, any teaching from a poverty mindset is wrong and unbiblical. Paul said that "everything God created is good, and nothing is to be rejected if it is received with thanksgiving" (1 Timothy 4:4). There's nothing wrong with wealth and increasing it, as long as the reason for our work is to glorify God and do His will.
What the Church needs to teach about personal finances
A friend and fellow car guy recently shared an article about a year-long study done by Consumer Reports on automotive loans. The article's main point highlighted the rapid increase in auto loan debt and how the industry is deceiving many people into high-interest, long-term loans. One question kept popping in my head as I read the article, "Why are people falling for these tactics and getting into these bad loans?"
Basic financial knowledge about buying a house, car, taking on student loans, and many more, is not shared. People, especially young adults, don't know or understand how interest rates affect the purchase's overall cost. They've been trained to look at every transaction as a monthly cost, so they lack the ability to calculate the actual cost of purchases.
You may be shocked by this if you're over 40 years old, but you shouldn't be. When you consider that everything we've been sold for the past 30+ years has been intentionally marketed to us as affordable in low monthly payments, it's not surprising that people have lost the ability to understand the actual cost of purchases.
Consider how calculators have changed our ability to do simple mental math or how GPS has changed our ability to remember simple directions. These technologies are wonderful in some ways, but our over-reliance on them has diminished our capabilities in other ways. The same is true when it comes to how we manage money and make financial decisions. We're being influenced by the limited financial information we receive (monthly payments instead of actual cost) and put at a disadvantage because of our lack of financial education.
The Church can fill this financial education void by focusing on the basics. Start by teaching people to put together a spending plan [budget]. This will give you so many other opportunities and topics to cover.
Consider the paystub. Most people no longer receive a physical copy, so they have no idea what's on it and what the charges mean. While you're helping them figure out how much they make and spend, which is part of creating a budget, you can help them understand federal and state taxes, the most cost-effective medical insurance plan, 401(k) contributions, and Flexible Spending accounts, to name just a few.
Here are a few more topics that they will love to learn about:
Buying a house
Calculating how much you can afford
Understanding the loan process
How to assess the condition of a house
Insurance and warranties
Repairs and maintenance
Buying a car
How to research to find a good quality car that will fit your budget
Negotiating the deal (private or dealer)
Financing
Calculating payment and interest rate to understand the actual cost
Dealer add on's - which to avoid and which to consider
Before you sign - understanding the financial agreement and avoiding hidden charges
Investing Basics
Couponing (Seriously! This one was one of our most attended classes)
Basic car maintenance and repairs
This is just a short list of some of the practical personal finance topics your Church can offer. Believe me! This will help your people, and they will greatly appreciate it. You will not only equip them to better manage money, but you will also help them find more contentment, more relational harmony in their marriage, and more joy in their life.
Conclusion
When you serve people by teaching them things that will positively impact their lives, you earn the right to speak into their lives and guide them by God's Biblical financial principles, which will foster a Biblical worldview and a commitment to living God-honoring lives.
The Church, through the Word of God, has the answers the world is seeking. I believe today, more than any other time in history, wealth, riches, and money are misunderstood and therefore misused, which leads to much harm. If the Church steps up and becomes the primary place to find and learn financial knowledge and wisdom, it will become the culture-impacting entity it is created to be.
For Further Reading:
Maintaining the Right Balance in our Saving
Making the Most of Every Opportunity
Contentment: The Superpower of the Financially Wise
Help People to Trust god More, and Giving will Follow
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