Managing Money Wisely FAQ
From a Biblical Perspective

In the Bible, God has a lot to say about managing money wisely.

Financial Freedom expert, Dave Briggs, who heads up the Good Sense Money Management Ministry at Willow Creek Community Church, relays the answers to many of the questions he receives about managing money.

Questions in this section deal with God’s perspective on managing money wisely concerning:

• Bankruptcy
• Saving
• Gambling
• Debt Reduction
• Dealing With Abundance
• Giving and Tithing

Please take a moment to visit our Home Page, to see the many ways we can help you achieve financial freedom by managing money wisely.

This section addresses money issues from a Christian or biblical perspective on managing money wisely.

Please refer to our complete list of Money FAQ to see many other managing money wisely questions and ideas.

Managing Money Wisely Question #1:

"Is bankruptcy always wrong for a Christ follower, or are there circumstances when it might be justified?"

As you can imagine, this is a question that Christ followers have wrestled with for a long time and not everyone is in agreement.

From a biblical perspective, it is important that we understand that the Bible teaches that we have an obligation to fulfill our promises to pay our debts, and that when we make a vow we need to do everything in our power to meet those obligations. Proverbs 3:27 states, “Do not withhold good from those who deserve it, when it is in your power to act.”

Declaring bankruptcy to protect personal property when assets are available and using it as a means of simply walking away from promises to pay is not dealing honestly with creditors.

On the other hand, there is biblical evidence that God does not want his people to live in a never-ending state of bondage due to an economic situation that is beyond their control and for which they have no reasonable means of paying back.

As a result, I think we need to take a realistic, cautious and prayerful approach to bankruptcy. It would seem that under certain conditions, bankruptcy may be a viable option to consider when the person with the debt has the right attitude toward their situation.

This attitude can be assessed by asking the following questions:

• Is the person in debt committed to paying off the creditors in the future if the funds become available, even it if takes a long time?

• Is the person willing to make significant cutbacks in lifestyle to cooperate with the creditors and to free up as much money as possible to pay them?
• Is the person willing to contact every creditor and let them know the reason for the bankruptcy and their strong desire to do what they can to pay off at least a portion of the outstanding debt?
• Is the person willing to commit to a financially responsible lifestyle that would keep them from getting into a similar situation again?

When the answer to these questions is “yes,” then bankruptcy may be an option for the believer. Before arriving at that decision, it is always wise to seek counsel from those you trust to give you Godly advice about your specific situation, and who will agree to pray with you regarding your decision.

Managing Money Wisely Question #2:

"What does the Bible say about gambling?"

The Bible has a number of things to say about the topic of gambling.Perhaps the most destructive thing about gambling is the way if feeds a "Get rich quick" mentality which the Bible condemns as harmful to our relationship with God. Here are some helpful verses to consider:

• God presents work as the normal way to get the money we need not gambling (Eph 4:28; II Thess 3:12; Prov 31).
• All my income belongs to God, not me (Psa 24:1), and I am not free to use it as I wish. I am a steward, who should use it for God's purposes. Christians are called on to meet the needs of their family (I Tim. 5:8), and share with others, particularly Christians who have needs (2 Cor 8-9; Gal 6:6-10; 3 John). We should ask: “Does God want me to use His money to gamble?”
• Greed and covetousness are sin (I Tim 6:9; Heb 13:5), and these are motives driving most gambling.
• Proverbs warns of disaster for people who want to get rich quickly (Prov 28:20, 22).
• Wealth that comes easily leaves quickly (Prov 13:11).
• Wealth gained the wrong way breaks up families (Prov 15:27).
• Gambling can be addictive, and even if you don't fall prey to it as a compulsive habit, your example may cause others to be enslaved by it (I Cor 8:9, 13).

Managing Money Wisely Question #3:

"What is so bad about credit cards if they provide a convenient way to cover unexpected expenses when we are short of money? Isn’t that flexibility a good thing?"

It is my observation that not enough people see the underlying danger of credit cards.

Here are some reasons why I believe credit cards can be harmful to your health …

• The interest on credit cards can pile up faster than people can afford to pay it back, often creating a hole nearly impossible to dig out of.
• Rather than finding a solution to income shortfalls by adjusting down the lifestyle immediately … credit cards are frequently used to avoid working on a solution until it is too late.
• Credit cards can actually take the place of trusting God to provide when we are in need. God wants us to really seek Him in our time of trouble … not turn to our plastic. Hebrews 11:6 says … “So, you see, it is impossible to please God without faith. Anyone who wants to come to him must believe that there is a God and that he rewards those who sincerely seek him.”
• Excessive interest and debt repayments are often cited as the main reasons why God’s people say they are not able to be generous.

Managing Money Wisely Question #4:

"I own a rental home which, if sold, would totally pay off all of my debt including the home we live in. I had anticipated keeping this for 10 more years and allowing it to appreciate in value, but my wife is interested in becoming debt-free now as opposed to realizing a larger profit in the future. What would you suggest?"

Because you don't know what the future may bring ... there is no way to know how much your rental property may be worth in the future … and therefore no easy answer financially to your question.

I do believe, though, it is very important that both you and your wife feel comfortable about your financial situation. I believe this is more important than the profit opportunity.

The chance to pay off your debt and start with a clean sheet of paper as well as give your wife a greater sense of “peace” … is a very powerful combination.

I would make it a matter of joint prayer as you seek God's direction. He does care about our finances and an opportunity to be debt free would be hard to beat!

Managing Money Wisely Question #5:

"This may seem like a silly question … but how do I know if I have too much money and am in danger of it getting in the way of my walk with God?"

I love the fact that you are asking that question.

Often, the more money we have the less aware we are of the danger too much money can represent from a spiritual perspective.

A very interesting passage that has always been a great challenge to me is Proverbs 30:8b-9 and goes like this: “… give me neither poverty nor riches! Give me just enough to satisfy my needs. For if I grow rich, I may deny you and say, "Who is the LORD?" And if I am too poor, I may steal and thus insult God's holy name.”

Any time we allow our riches to put distance between us and God, we are in a dangerous spiritual spot just as much as if we have too little and are in danger of stealing. We should bring this concern before God continually to keep wealth from being a barrier in our relationship to Him.

Managing Money Wisely Question #6:

"My husband and I have always budgeted, tithed and saved carefully. We have two daughters. We have a plan that allows us to contribute about $50,000 to each one's college tuition but we figure this will be about half of the total expenses needed.

My question is this: I work at the church and love it but since $50,000 does not go very far towards college these days should I consider a job change to be able to contribute more towards our girls' college education costs?

Are there other options for funding a college education?

Should the expenses be our children’s obligation or ours as parents?"

Well, you asked for my opinion and so here goes...

You may not like the answer, but having seen parents and kids struggle for years with college loans, I am pretty much against large college debt.

Whether you get a higher paying job or a second job or just stay where you are, is between you and God. Do what He tells you. As for the girls ... although it is not popular to do, I would consider a cheaper and more "initially painful" route to avoid long term debt problems...

Encourage your girls to spend the first two years at a community college with a small job on the side to save money then transfer to a good four-year school for the last two years ... or, they could take a year off before going to college and live at home, get a job and save money like crazy so as to avoid debt ... then go to a four-year school.

They could also attend a four-year school for two years and then take a year off to work and save money to be able to afford to go back for the last two years.

There is nothing wrong with combining work and school and to taking time off to work rather than getting loans. I fully realize this is not a popular opinion ... one that a lot of secular educators would scoff at ... but I believe it is less painful than dealing with the long term effect of large college loans.

Another area concerning managing money wisely relates to giving and tithing.

Please click here to learn about managing money wisely as it relates to giving.

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