The reasons for the lack of knowledge regarding personal finance are the same reasons people go into debt.   

First, ignorance.  They truly don’t know about personal finance and the impact of their everyday decisions.

Second, indifference.  They know about personal finance, but don’t want to put the principles into practice.

Third, compulsiveness.  They know about personal finance, but can’t quite discipline themselves into controlling their spending.

Fourth, pride.  They know what they need to do, but don’t do it, because appearance to others (after borrowing money for things) is more important than making choices that bring them closer to God.  The truth is this:  people will never truly love us simply because we have more toys.  Destroying ourselves financially to maintain a lifestyle we cannot honestly support is a classic example of attempting to serve both God and man.  It doesn’t work.

We must then ask the question:  “What can be done?”

Regarding ignorance, you must learn about finance.  Finish this series.  Make learning a lifelong process. Write out your personal and family goals, and complete your personal financial plan.  Learn what you need to do and then set goals to get your financial house in order.

Regarding indifference,  you must become exact in all you do.  Keep good records of your income and spending, and get on a budget.  Keep learning more about the principles of personal finance.  Develop and following a spending plan—a budget.   It is the most important financial tool you will ever use.  Take responsibility for your spending—no one else will.

Regarding compulsiveness, do not give in to the “natural man.”  The apostle Paul wrote:  “But the natural man receiveth not the things of the Spirit of God: for they are foolishness unto him: neither can he know them, because they are spiritually discerned.” (1 Cor. 2:14)

Learn to live a disciplined life.  Jason Payne, CFP encourages his clients all to ask when it comes to spending: “Does this action get me closer to or farther from my personal and family goals?” (interview with Jason Payne, November 26, 2006)   If it brings you closer, do it.  If not, don’t.

Regarding pride, the key is to put God first in your lives.  Ask yourself:  “Does this action bring me closer to God through obedience to His commandments or take me farther away?”  If it doesn’t bring you closer, don’t do it.