Financial Lessons in the Story of the Prodigal Son

Reckless spending is painful!

The parable of the Prodigal Son is a story of love, forgiveness, and redemption, but it also contains some financial principles. The first is the importance of self-discipline. The younger son’s reckless spending quickly depleted his inherited wealth. Prudent management of resources prioritizes giving, saving, wise spending, and diversified investing. Budgeting and working toward a goal is a means of protection from instant gratification.

Second is the value of earned wealth. The Prodigal lacked appreciation for his inheritance. Those destined to receive large sums of money should be trained to manage it wisely. Third, money and possessions don’t guarantee happiness, security, or contentment. Materialism is an illusion. Fourth, prepare for an economic downturn, no matter your financial status. A famine exposed the Prodigal’s lack of foresight and preparedness. So build an emergency fund, spend less than you earn, and diversify your investments to prepare for an unknown future.

Finally, choose your friends carefully. The Prodigal associated with those who encouraged reckless spending, then abandoned him during his time of need. People will have a profound influence on our lives. The Prodigal finally came to his senses. He acknowledged his mistakes, returned to his Father, who welcomed him and helped him rebuild his life. Though he lost all of his wealth, he found true wisdom. Now, if you’ve wasted money in the past, confess it and humbly ask your heavenly Father to help you start over.

And if reckless spending has led to credit card debt, let Christian Credit Counselors help. They can create a debt management plan specifically for your needs. For more information, visit online at crown.org/ccc.