6 Dangers of Lacking Financial Literacy

Money Missteps That Erode Purpose and Potential

A Christian man walked into my office to share his predicament. He opened a piece of paper on which he had scribbled the names of seven financial institutions and five individuals he owed money to. Our Sacco was number seven on the list.

Due to all these debts, the gentleman relocated his family to the village to start afresh. After years of struggle, he eventually cleared the loan with our Sacco, but his experience left me with lessons about money I will never forget.

Ignorance in any area that affects your life is no defence when you face the consequences of not knowing what you needed to know.

Christian Money

As a Christian, God, through His Word, has given you all you need to know, understand, and obey in every aspect of life. Our lack of knowledge leads to delays, destruction, and even death. Have you heard the tongue twister that says, “Man made money, money made man mad.” Is it true? Hasn’t money complicated the lives of many people?

People do unimaginable things to get money. Some lie, steal, cheat, embezzle, kill, sacrifice loved ones, and sell their souls. The drive to become materially rich has become a respected pursuit that many pursue without shame or apology. As a Christian, you can’t afford to be ignorant about money. You can’t leave your financial well-being to fate or assume faith alone will see you through.

Because:

• Jesus taught financial truths and used financial parables to explain spiritual truths.
• You can’t serve and love both God and money.
• Your faithfulness in handling money determines how much of the true spiritual riches of heaven God will give you.
• Financial stress can make your life miserable and even shorten it.
• Biblical financial principles are like the laws of nature; you go against them at your risk. They don’t change.

To overcome financial ignorance, we need financial literacy or money stewardship based on the truths of God’s Word. Money stewardship means faithful management of God’s financial resources through learning what He says about money, earning it His way,and distributing it wisely.

1. You will love and serve money rather than love God and serve His people. This will not only distract and detour you from your purpose and assignment in life, but you will also risk losing your soul in hell. (Mark 8:36)
2. You will never know biblical contentment. The Bible says godliness and contentment are great gains. Won’t it be a great loss to go through without ever experiencing this great gain? (1 Timothy 6:6)
3. You will squander the income God gives you today and be in lack tomorrow. Then you will wish you had done better when it’s too late.
4. You will get into debt and become a slave to lenders all your life. (Proverbs 22:7)
5. You will fail to run a thriving business or ministry because if you fail to manage your personal finances, you won’t manage an organization. Personal indiscipline flows into your public engagements.
6. You will invest everything into earthly and temporary pleasures and possessions and have nothing in eternity.

To help Christians grow in biblical financial literacy, Pass On Leadership Africa has written a book and developed a course called Money Stewardship. I’ll share truths from this resource.

Where is the Solution?

I’m grateful to have earned a bachelor’s degree in business administration, finance, and banking, and to have spent a decade as a co-founder and manager of Goldlines Sacco. My studies, observations with our clients, and personal finance experiences have taught me the importance of being a faithful steward of the resources God has entrusted to me.

So, what is God’s solution to overcome ignorance and its consequences?

The solution is the Truth, the Person Jesus Christ, and His Words.

He said;

“…If you continue in My word, you are truly My disciples. Then you will know the truth, and the truth will set you free.” (John 8:31-32)

The source of our truth is the Bible. And the teacher of this truth is the Holy Spirit who resides in every Christian.

Therefore;

“Get wisdom, get understanding;
do not forget my words or turn from them.
Do not forsake wisdom, and she will preserve you;
love her, and she will guard you.
Wisdom is supreme; so acquire wisdom.
And whatever you may acquire, gain understanding.
Prize her, and she will exalt you;
if you embrace her, she will honor you.” 
(Proverbs 4:5-8)

1. Stewardship – You own nothing. God owns everything.
2. Greed vs contentment – A greedy person can never be content.
3. Poverty mentality – You have to overcome the lies you’ve believed about money from your upbringing.
4. Work and earning – Appreciate the blessing of work and how to seize investment opportunities to create different streams of income for greater impact.
5. Debt – As a Christian, you’re to live with only one debt: love.
6. Budgeting – You know where your money goes.
7. Give – Learn giving that impacts lives and stores in eternity.
8. Expenses – Become frugal and spend wisely.
9. Mentor – How to help your children become financially literate.

Welcome to this adventure of learning what the Bible says about money. Only the truth from God’s Word can set you free.

• Eng. Musinguzi Begumisa
• Israel G Hirwa
• Lawrence Namale
• Lilian Katiso
• Nicholas Luwazo Kyanda