As we open our series on financial literacy, let’s first define the term. Financial literacy means understanding how money works—how to budget, save wisely, manage debt, invest responsibly, and give intentionally. Without this knowledge, even well-intentioned believers may struggle to steward their resources effectively. Scripture consistently affirms the value of wisdom and planning:

“The plans of the diligent lead surely to abundance.” — Proverbs 21:5

One of the most transformative truths in the Christian life is the realization that nothing we possess truly belongs to us. Scripture repeatedly reminds us that everything—our resources, abilities, time, opportunities, and even our very lives—ultimately belongs to God. Faithful stewardship begins when we recognize this reality and respond with gratitude, responsibility, and generosity.

Learning how to manage finances well allows believers to live with greater freedom and purpose. Instead of being burdened by debt or financial confusion, financially literate stewards are better equipped to provide for their families, support ministry, and respond generously when needs arise.

Financial literacy is not about accumulating wealth for its own sake. Rather, it equips us to manage God’s resources responsibly so that they can be used for His kingdom. When we understand how to steward money wisely, we become better positioned to give, bless others, and participate in God’s work in the world.

What is a Budget and Why is Budgeting Important?

A budget is a tool to broadly know where your money goes each month. The goal of a budget is to help you understand your fixed expenses (rent or mortgage, insurance, internet, etc.) and assess how you spend your remaining money. If you’ve never used a budget or tracked your spending, you may be in for some surprises! In our time of debit card spending and monthly subscriptions, it’s easy to spend money without being aware of how much you’re spending and on what. Dining out and entertainment can easily become financial black holes.

If you regularly find yourself short on funds toward the end of the month, a budget will help you track all your expenses, so you can see patterns and determine whether you need to make any spending changes.

Step 1:

Determine a general budget. Start with your net income (after taxes) and subtract your fixed costs. The remaining amount is what you have to spend on groceries, entertainment, gas, dry cleaning, dining out, savings, investing, giving, etc.

Step 2:

Track your spending. After a month, you will be able to see whether your spending was lower than or exceeded your income. After a couple of months, you’ll start to see patterns.

Step 3:

Once you have your spending information and can see where your dollars are going, it’s time to assess your situation. Are you making smart financial decisions? Are you outspending your income each month? Does your spending align with your values and financial goals? If not, start making changes so your spending patterns move closer to your values. This can be challenging, but quite meaningful.

Step 4:

Review and revise. Plan to review your budget every quarter to start, then semi-annually, and then annually. Also, it’s important to review your budget when life changes happen that will impact your spending. Starting a new job with a longer commute may impact your clothing budget and likely your transportation costs. Going from one income to two will likely improve your ability to save and give, just be mindful of how your spending changes, too.

Faith & Finance Perspective

Having a budget can give you financial peace of mind. But ultimately, stewardship is not about money alone. It is about living with open hands—holding everything loosely because we know it all belongs to God.

When we embrace this truth, generosity becomes not just something we do, but part of who we are. Faithful stewardship then becomes a joyful response to the grace we have received and a powerful way to participate in the work God is doing in the world.

“The earth is the Lord’s, and everything in it, the world, and all who live in it.” — Psalm 24:1