How to Approach Financial Literacy with a Faith-Based Mindset
If you're preparing to graduate and pursue the career of your dreams, financial literacy is a crucial skill. Navigating personal finances can be challenging for anyone, but especially for young adults who are new to concepts like budgeting, debt management, and long-term financial planning.
Additionally, it's important for Christian students to navigate financial literacy with a faith-based mindset. Thankfully, Dallas Baptist University offers several classes and resources that will help you on your financial journey as you seek to honor God with your decisions.
Why Financial Literacy Matters
According to the Office of Federal Student Aid, the average college student graduates with about $37,850 in debt. Additionally, a recent survey by Bankrate shows that 34% of Americans are living paycheck to paycheck. With statistics like this, it's vital to learn money management skills before graduating.
Financial literacy equips you with the knowledge and tools to manage your finances effectively. Three essential money management skills include budgeting, saving, and responsible credit use. Budgeting helps you track your income and expenses, ensuring you live within your means. Saving allows you to build an emergency fund and plan for future expenses, reducing financial stress. Responsible credit use involves understanding interest rates, making timely payments, and avoiding unnecessary debt. By developing these skills, you can make informed financial decisions, avoid common pitfalls, and work toward long-term financial stability.
A Faith-First Mindset
Not only are good financial habits important to leading a successful, career-driven life, but they're also key to living a life that honors God. By addressing finances from a faith-first mindset, you can ensure you honor God while supporting your community and setting yourself up for success.
Remember, when looking at finances from a faith-centered lens, you can always turn to God's Word for guidance. As James 1:17 reminds us: "Every good and perfect gift is from above, coming down from the Father of the heavenly lights, who does not change like shifting shadows." (NIV)
When managing money, use it in a way that glorifies God — whether that be through tithes or giving to those in need.
Understanding the difference between wants and needs is crucial for effective budgeting and living as God intended. Consider Luke 12:15: "Be on your guard against all kinds of greed; life does not consist in an abundance of possessions" (NIV). When you focus on spending money on essential expenses and limiting how much is spent on luxuries and other non-essentials, you can embrace simplicity and find joy in the little things, all while living within your means.
These are just some of the ways you can navigate your finances while living a faith-centered life. For other practical tips, check out DBU's higher education blog.
Top 5 Financial Literacy Resources for Christian Students
To help Christian develop financial literacy skills, check out these resources:
Dave Ramsey's EveryDollar
Ramsey Solutions offers biblically-based education for those looking to improve their finances. EveryDollar is an easy-to-use budgeting app that will help you keep track of your money at a glance.
Crown Financial Ministries
Crown bases its resources on Christian values. Its website offers budgeting tools, courses, and other resources to help individuals better manage and understand their finances.
Scratch
If you're among the many students who had to take out loans for your education, Scratch will help you understand, manage, and pay back your loans.
FaithFi
This app includes budgeting features and provides users with faith-based articles and podcasts on finance for continued learning.
Compass
Compass provides Bible-based financial studies, tools, and online courses to help you apply biblical principles to your money management.
Financial literacy is a vital skill for Christian students to have as they navigate adulthood and develop their careers. Looking at finances through a faith-first lens allows you to align financial decisions with Christian values, ensuring you use your money in a way that fits you as a faithful steward of God.
No matter how God calls you to live your life, financial literacy will help you live and grow without worry. Take the first step today by exploring DBU's resources, or even consider enrolling in a course on financial literacy.
