Biblical Financial Literacy: Defining common terms and practical applications

Financial discipleship. Stewardship. Simplicity. Giving. Generosity. 

These are common words used in the faith and finances realm, but how well do we understand the meaning behind each of these words? 

Let’s do a quick overview to define each one and explore how these terms build on one another. 

And, because it is at our core to disciple, we’ve added a personal reflection question for you to discern where God is inviting you to take a next step. 

Let’s dive in!

Financial discipleship 

Financial discipleship is a newer term being used in churches and ministries alike. The word discipleship means to follow, study, and ultimately become like Jesus. So financial discipleship can simply be described as imitating Jesus through our finances.

Disciples of Christ must ask ourselves: How did Jesus live? How did he use money? What steps can I take to follow him?

This doesn’t mean we all must become traveling missionaries, but it does mean we ought to value the things he valued. Jesus didn’t pursue a life of temporal comfort, pleasure or ease – the lives of his followers ought to testify to this.

At the core of financial discipleship is your relationship with Jesus. As your love grows, you naturally care more about the things that matter to God. Your life begins to reflect Christ’s love, and your money follows.

I believe everything within the faith and finance world hinges on discipleship. If we are not intentionally following Christ, everything else will be done in vain.

Reflection question: Is your use of money drawing you closer to Christ?

Stewardship

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

Stewardship is the biblical understanding that God owns everything. Your time, money, talent, and resources are all gifts from God that he has given you to manage. 

Faithful stewards work hard, using all that has been entrusted to them for the betterment of God’s creation. 

Since everything we have is his, it is impossible to be financially independent from God. A steward’s role is to seek the will of the Owner and respond obediently. Each financial decision is God’s to make; each outcome belongs to him. It is this very heart posture that creates a space for simplicity to grow.

Reflection question: If you began living as if YOU owned it all, how would your financial decisions change?

Simplicity

With a recent resurgence of spiritual disciplines and popular minimalism trends, simplicity conversations are becoming more and more common.

In his book, Freedom of Simplicity, Richard Foster describes it as both a grace and a discipline. Simplicity is not merely downsizing your lifestyle or reducing your spending. We cannot will ourselves into simplicity; it is a gift received by God. 

There are both inner and outer elements of simplicity. I was surprised to learn that simplicity has as much to do with my heart posture as it does my material possessions. According to Foster, when we receive the gift of simplicity we become simple minded. Our hearts are aimed fully at honoring God, and when that happens, we begin to care less about the opinions of others. We stop worrying about our social status, we stop seeking approval from others, and we become much more comfortable living to please God only.

As with many spiritual disciplines, the inward heart posture then creates an outward reality. We begin to purchase things for their usefulness and practicality, rather than becoming a slave to the latest fashion trends. We are careful not to buy things that will distract from our worship.  

Christian simplicity holds the tension between honoring the goodness of God’s creation and affirming the limitation of material things. The grace of simplicity loosens the grip on our money and possessions. We find contentment in our own lives and begin to care radically about the well-being of others. 

Reflection question: Prayerfully consider how the opinions of others impact your buying decisions. Before your next major purchase ask yourself, “If I bought this item and no one ever saw it, would I still want it?”

Giving + Generosity

These two words go hand-in-hand, but there is some nuance to their definitions. Both giving and generosity involve voluntarily transferring something to someone else. It is an exchange where money, goods, or services is handed over without expecting anything in return. 

Giving is about the general action, or the transaction, if you will. Generosity, however, is more about the heart posture behind the gift. Generosity refers more deeply to the motivations, sacrifice, and genuineness that influence giving. 

In short, not all giving is an act of generosity. Jesus famously calls the Pharisees “hypocrites” because of the disingenuous nature of their giving. 

We serve a radically generous God, and he is the ultimate teacher. Because we are made in his image, it is no surprise he calls us to be radically generous, too. 

1 John 3:16, “This is how we know what love is: Jesus Christ laid down his life for us. And we ought to lay down our lives for our brothers and sisters.”

Reflective question: Can one’s giving be generous if it is not sacrificial?

And there you have it. A short overview of financial discipleship, stewardship, simplicity, giving, and generosity. 

As we wrap up, consider which of these challenges you the most and where you can continue leaning in.