Christian Financial Planning vs. Traditional Financial Planning: Understanding the Key Differences

As a Christian financial advisor and Certified Kingdom Advisor (CKA®), one of the most common questions I hear is: "What makes Christian financial planning different from traditional financial planning?" 

While the technical strategies may look similar on the surface, two things are very different. 

• The underlying principles behind Christian financial planning are rooted deeply in scripture. 
• The heart behind the decisions you make is aligned with God's heart and desires for this world. 

Christian financial planning is about far more than finances. It's a journey that transforms your relationship with money in positive, powerful ways while deepening your faith and your relationship with God.

What is Traditional Financial Planning?

Traditional financial planning typically focuses on wealth accumulation, investment returns, and retirement security. A personal financial advisor in this space will generally:

• Create investment strategies focused primarily on maximizing returns
• Develop retirement plans based on lifestyle maintenance
• Recommend debt strategies as tools for wealth building
• Consider charitable giving mainly for tax advantages
• Focus on wealth preservation and transfer

All of this is important, but these principles are simply about building and protecting wealth. They miss something deeper - the purpose for our wealth and God's plan for it.  

What is Christian Financial Planning?

Christian financial planning, or biblical financial planning, starts with a foundational truth: God owns it all. As Psalm 24:1 tells us, "The earth is the Lord's, and everything in it." This isn't just a nice saying – it’s a truth that transforms how we approach every financial decision.

As faith-based financial advisors, we build our approach based on biblical principles:

• Stewardship rather than ownership
• Generosity as a spiritual practice
• Wisdom in debt management
• Eternal perspective in decision-making

Indeed, your entire perspective towards wealth changes in Christian financial planning. These principles go far beyond concerns about growing and protecting wealth—they're about aligning your heart with God's. 

If we believe that God owns it all, then our approach to money shifts from control of what is ours to stewardship of the resources God has trusted us with. It shifts from self-interest and fear to kingdom impact and the courage to use our wealth to love and serve others. 

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When we were searching for a mission statement for Peak Financial Management, we eventually realized that it was right in front of us in scripture. 

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share. In this way, they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life. — 1 Timothy 6:17-19

It's all here! Where you put your hope matters. If your hope is in money, fear, arrogance, and far worse things are likely to follow. However, when your hope is in God, and you are willing to follow His principles for wealth management, you are invited into a far more beautiful life both now and in the life to come. That is an incredible promise, and we will help you see how we pursue it in Christian financial planning below. 

Key Differences Between Christian and Traditional Financial Planning

Once the idea that God owns it all takes hold, you begin to see yourself as a faithful steward of His resources. Your perspective changes dramatically, and at a high-level, these are some of the ways your thinking changes for the better.

1. The Core Principles of Financial Management

• Traditional Approach: Focuses on wealth accumulation and financial security
• Christian Approach: Emphasizes stewardship and trusting God. It leads you to think about the difference you will make in this world as a disciple of Jesus 

2. Your View of Wealth

• Traditional Approach: Presents wealth as the end goal
• Christian Approach: Presents wealth as a tool for glorifying God and serving others. 

3. Your Investment Strategies

• Traditional Approach: Focuses solely on financial returns
• Christian Approach: Incorporates faith-aligned investment strategies that look deeper than returns to consider the way they were earned and the impact of your investments on the world

There are many investment strategies we deploy in Christian financial planning, including . . . 

• Biblically Responsible Investing (BRI): Screening investments to align with biblical values
• Impact Investing: Seeking opportunities that promote human flourishing
• Values-Based Portfolio Construction: Avoiding companies that conflict with Christian principles

4. Your Approach to Debt

• Traditional Approach: Uses debt freely as a tool to acquire assets and leverage financial growth
• Christian Approach: Approaches debt with great caution and care and follows Biblical guidance in using it. 

5. Your Attitude Towards Giving

• Traditional Approach: Treats giving as an afterthought or as a tool for reducing a tax burden 
• Christian Approach: Makes giving central to financial planning

The Key Principles of Christian Financial Planning

At Peak Financial Management, we have identified 7 key principles, all grounded in scripture, that define the way we guide clients in pursuing God's heart and plans for their wealth. 

Principle 1: God Owns It All

The earth is the Lord's, and everything in it. — Psalm 24:1

We mentioned this above, of course, but it bears repeating. This is the foundational paradigm shift that changes how you view wealth for the better. 

If we believe that we are the owners of our money, then we feel as though we have the right to do whatever we want with it. We feel entitled, and we miss a greater story God wants to write in our lives in how we use our wealth to follow in Jesus's footsteps. 

Principle 2: Spend less than you earn

Dishonest money dwindles away, but whoever gathers money little by little makes it grow. — Proverbs 13:11

This one is really just common sense, but you might be surprised to realize it is grounded in scripture and talked about in the Bible!

Principle 3: Avoid the use of debt

The rich rule over the poor, and the borrower is slave to the lender. — Proverbs 22:7

Sometimes debt is necessary. Part of taking on debt means making assumptions about the future. Knowing that only God can predict the future, debt is something that should be used with a lot of prayer, discernment, and wisdom. 

Principle 4: Avoid a consumptive lifestyle

Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless. — Ecclesiastes 5:10

Traditional financial planning would say the more money the better, and consumeristic cultures think that buying things will ultimately make you happy, but money can't buy contentment. 

In truth, money is neutral, but having a lot of it comes with responsibility. Our goal should be to act as conduits of God’s blessings, not collectors.

Principle 5: Give joyfully

‍Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. — 2 Corinthians 9:7

The heart matters. God loves a cheerful giver, and giving is about so much more than a tax benefit. It’s about cultivating a heart that mirrors God’s generosity.

Principle 6: Set long-term goals

In their hearts humans plan their course, but the Lord establishes their steps. — Proverbs 16:9

Scripture is clear. We need to be looking to the future, thinking about what it is that we want and are called to do with what God has entrusted to us.

Principle 7: Beware the dangers of wealth

The seed falling among the thorns refers to someone who hears the word, but the worries of this life and the deceitfulness of wealth choke the word, making it unfruitful. — Matthew 13:22

When wealth is simply an end in itself, and acquiring it is the goal, it is far too easy to lose yourself in fear, greed, selfishness, and everything that follows those impulses. But when you see your wealth as belonging to God and focus on using it to serve others and glorify Him, you discover a deeper purpose and joy that transcends simply doing what's right.

Benefits of Christian Financial Planning

Christian financial planning has lasting, deep benefits for those who pursue it. 

It creates a spiritual alignment with scripture and the teachings of Jesus, which transforms the heart from which you make your financial decisions. At last, both your faith and your finances are integrated in a meaningful way. You find peace and confidence in your financial decisions, knowing they are based on solid biblical frameworks. 

Christian financial planning is a holistic approach that considers both the earthly and eternal impacts of your financial decisions. It transforms the way you see money mentally, emotionally, and spiritually and creates opportunities to address your unhealthy relationships and heart issues with money.  

At the same time you sacrifice nothing in terms of the professional financial expertise guiding your decisions. Christian financial planners can combine deep financial acumen with spiritual wisdom. At Peak Financial, we serve as fiduciary advisors who put your needs first, using an understanding of both technical and biblical financial principles

Challenges in Christian Financial Planning

Your greatest challenge in Christian financial planning will always be balancing worldly financial wisdom with biblical principles. Navigating the realities of the financial markets while in pursuit of integrity and obedience to God's Word is no easy task. 

The key is to find qualified advisors who hold both technical financial expertise and spiritual maturity. Certifications like CKA® (Certified Kingdom Advisor) are very helpful in this regard, along with your own conversations and prayerful discernment in vetting potential advisors. 

Christian Retirement Planning

It's worth noting that retirement planning takes on new meaning within a biblical framework. 

Rather than only thinking about the future, Christian retirement planning leads you to think about how you are stewarding your wealth throughout every stage of your life. You will find yourself constantly considering the kingdom impact of your decisions and seeking a balance between your future financial needs and the call to be generous and give joyfully. Your plans for your financial legacy and how it is passed on will be informed by Christian values and prayer. 

How to Choose a Christian Financial Planner

Questions to Ask Potential Christian Financial Advisors:

1. What is your approach to biblical financial planning?
2. How do you integrate faith into investment decisions?
3. What certifications do you hold (CFP®, CKA®)?
4. How do you help clients balance wealth building with kingdom impact?

Factors to Consider:

• Your potential advisor’s spiritual maturity and biblical knowledge
• Their investment philosophy and approach, especially in regards to scripture
• Their understanding of biblically responsible investing and the investment options they have available on this front
• Their alignment with your values and goals

Conclusion

At the core of Christian financial planning is a deeper understanding of how money affects the heart. As followers of Christ, we are called to be stewards, not owners, of God’s resources. As Jesus said in Matthew 6:21, "Where your treasure is, there your heart will be also."

At Peak Financial, we’re committed to helping you navigate these waters while building a solid financial future that aligns with your faith. 

Next Steps

Ready to explore how Christian financial planning can transform your approach to wealth management? Schedule a brief, 25-minute meeting with our team to learn more about:

• Creating a biblically-based financial plan
• Implementing faith-aligned investment strategies
• Developing a generous giving strategy
• Planning for a purposeful retirement
• And much more

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We look forward to meeting you and joining you in prayerfully considering your financial future. Peak Financial is a place where you can talk about faith and finance at the same time, and our goal is to guide you to the true peak of financial health, a place beyond mere financial security where you strive to create a surplus of wealth you can use to serve the Kingdom of God.