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Personal finance: Individuals’ and congregations’ religious ethics often govern their financial decisions – in giving, spending, saving, investing, borrowing, allocating and other money matters. For many people, religious beliefs affect what products they buy, and where they choose to spend their money. They may support or avoid certain businesses or industries because of religious beliefs. Some faiths celebrate holidays that lead to seasonal spending on religious-holiday-specific items. Many Christians believe in tithing 10 percent of their income to the church. Muslims are obliged to pay zakat al-fitr (charity) before the end of Ramadan to be given to the poor.
The Christian movement Word of Faith (known for its “Prosperity Gospel”), believes faithful Christians should expect financial prosperity and wealth, based on an interpretation of the words of the Apostle Paul: “Yet for your sakes (Christ) became poor, that you by his poverty might become rich” (2 Corinthians 8:9). Religious beliefs also play a role in individuals’ and congregations’ views toward credit, loans and debt. Christian theology views debt as not a sin, but that it should only be used in extreme necessity, since it leads to financial bondage, based on Proverbs 22:7, “the borrower becomes the lender’s slave.” Some Christians say it is not acceptable for Christians to owe any money, even for a home. Others feel such debts are acceptable as long as debt does not place a burden on the family’s finances.
Islam forbids lending with interest, as the Catholic Church long did, and the Torah states that all debts should be erased every seven years and every 50 years. Mormons believe in self-reliance, emphasizing that emergency preparedness includes preparing financially by staying out of debt, saving for the future and obtaining insurance. Faith-based investing is a burgeoning industry, and houses of worship now routinely offer courses in money management and personal finance.
Business finance: Those involved in the business community often bring with them similar beliefs as those that govern their personal financial habits. Executives and small business owners likely will exercise their personal religious beliefs about finances in the business world as well. Their beliefs affect the products they buy and sell, where they invest, the practices in which they engage, and their behavior in the workplace. Recent large-scale financial fraud in the private industry has caused some in the business community to appeal to religious values as the best way to increase ethical decision making in the workplace, though others are concerned about religion’s potential to create conflict or violate federal workplace laws.
As large corporations come under closer scrutiny, some religious organizations – from Christian mega-churches to Islamic charities (some came under scrutiny following the 9/11 terrorist attacks) – also feel the push to study their books more closely and be more transparent to members and the public about how money is spent. Though big-name mega-churches receive much publicity today, older and smaller churches, many in the mainline Protestant tradition, are shrinking in membership and resources. They are seeking ways to revitalize their church “economies” to remain viable. These could all be a growing industry for analysts and consultants, who can advise churches on economic matters and businesses on ethical matters.
Philosophies: Religious beliefs about economics and personal finance lead people of faith to various positions on current issues. For example, while most churches believe in helping the poor, they take different views on how to do it. Some of the more conservative evangelical Christian churches associate any kind of state intervention with socialism, favoring individual or faith-oriented efforts; though others praise the value of work over welfare, even at minimum wage. Some religious groups see an active role for the state and favor raising the minimum wage, a change they feel is tied to justice and practically a scriptural mandate. Different religious interpretations of philanthropy – where and to whom money should be given, and why – affect both the personal finances of the individual and the resources communities have available to serve needs, locally and globally.
Global scale: Religious beliefs often affect people’s views of global poverty and bounty, and the roles of states and individuals in mitigating suffering. Some religious groups, such as the Presbyterian Church (U.S.A) have joined efforts to divest investment portfolios form Israeli companies and companies that do business with Israel to pressure Israel to guarantee human rights for Palestinians. This angers some other religious groups, such as the (Jewish) Anti-Defamation League, which believes divestment is a punitive measure against Israel for its policies in the West Bank and Gaza Strip.
Around the world, wars related to religion affect local and global economies. One could investigate how religion, or its suppression, affects economic growth, or ponder whether increasing abundance through freer markets would decrease the supply of people wiling to be suicide bombers. International Third World debt has reached the scale that many economists, as well as people of faith, are convinced that debt cancellation is the only way to restore global equity in relations with the developing nations. Religious groups often spearhead intervention in impoverished areas to improve quality of life. Some efforts are evangelistic in nature, others are not overtly so. Intervention ranges from providing medical care and building homes, to improving sanitation and teaching indigenous people sustainable agriculture and new enterprises to overcome poverty.
Areas for study: Scholars in large numbers are now analyzing the intersection of faith and economics. They include people from a range of disciplines from across the United States and around the world, as well as students doing groundbreaking research. Questions they could look at include: How does religion affect the economy? How do economic factors impact religious choices? How do religious beliefs affect how people spend their money? What impact does religion have on the global economy? How does membership in a strict or extreme religious group pay off – not just in the afterlife, but in the here and now? Does faith generate individual behavior that boosts the economy?
Researchers could also look at what resources are available for those of faith who want to make large purchases without using credit or incurring debt, or want help consolidating existing debt. This field of study, as well as financial counselors who can offer advice from a religious perspective, will be a growing field.
Journal of Religious Ethics
Journal of Society and Christian Ethics
American Academy of Religion Syllabi Search
Religion, Economy and Values
Ivan Strenski
University of California Riverside
Religion and the Marketplace
Dr. Linda D. Holler
San Diego State University
Theorizing Cultural Differences: The Economics of Fundamentalism
Daniel L. Chen
University of Chicago
Religion in the World: Economics of Religion
Carmel Chiswick
University of Illinois at Chicago
Association of Christian Economists
Association of Christians in Mathematical Sciences
Christian Academics
Muslim Finance Professionals Association
- See a full list of professional associations and resources here.