Campus CrossWalk Magazine: 2007 Spring Issue -- The Cost of a “Free” T-Shirt

Quick, by a show of hands, how many of you have a credit card? Let me guess… you only signed up for it to receive the free t-shirt they were giving away.

Unfortunately, studies show that the “free” t-shirt will cost you a lot of money.

Over 80% of undergraduates have at least one credit card. Nearly 50% of college graduates carry four or more credit cards. According to the Department of Education, the average balance carried by these students is more than $3,000.

If you are carrying a balance of $3,000 on your credit card with 12% interest and you decide to pay it off in one year, you will have to pay $266.55 each month. The total you pay is $3,198.60. That free t-shirt just cost you almost $200!

For some, that free t-shirt is costing a lot more. According to the Senate Committee on Banking, Housing and Urban Affairs, the fastest growing group of bankruptcy filers are those people who are 25 or younger.

Is this the financial plan God intended for us?

What happened to, “‘For I know the plans I have for you,’ declares the Lord, ‘plans to prosper you and not to harm you, plans to give you hope and a future.’” (Jeremiah 29:11, NIV) That doesn’t sound like a life of debt and bankruptcy.

This was never God’s plan for His children. In fact, His Word has much to say about how we should handle our money. According to Christianity Today, “The Bible contains 30 verses on baptism, 225 on prayer, 300 on faith, and 700 on love, but at least 2,350 on money, finances, and material possessions.” (ChristianityToday.com)

But do they really apply today?

Great question! Here are some principles from God’s word you can put in practice today in the area of handling your money:

Principle 1

– “Choose you this day whom you will serve.”

This is the foundational principle of, well, everything! Do you submit yourself to the Lordship of God… all of you?

In the Sermon on the Mount, Jesus says, “No one can serve two masters. For you will hate one and love the other, or be devoted to one and despise the other. You cannot serve both God and money.” (Matthew 6:24, NLT)

Principle 2

– “A penny saved…”

They used to be called “rainy day funds.” Dave Ramsey, author of The Total Money Makeover, calls it an emergency fund. The Bible calls it preventing disaster!

: “Have them gather all the food and grain of these good years into the royal storehouses, and store it away so there will be food in the cities. That way there will be enough to eat when the seven years of famine come. Otherwise disaster will surely strike the land, and all the people will die.” (Genesis 41:35-36, NLT)

Saving money for the specific purpose of its availability when trouble comes is one of the best strategies to avoid debt. Think about it. The car breaks down and you don’t have any money in the bank. Mom and Dad say they can’t help this time. What do you do? Most will put it on the credit card.

Ramsey suggests for single people to make it their first financial goal to save $500 ($1000 if married) in a savings account that you don’t touch. It is for emergencies only. New clothes for a date is not an emergency!

Principle 3

– “The borrower is slave to the lender.”

Proverbs 22:7 says just that--the borrower is slave to the lender. When you borrow money (like using a credit card), you are now a slave to do as the lender says. You must pay back certain amounts at whatever interest rate they say.

Do you think that impacts what you could be doing for God?

The average family pays more than 13% of their income (after taxes) toward debt (credit cards, student loans, etc), according to the Financial Literacy Month Resolution. These are the same families that came to me in my financial counseling business and said they could not afford to tithe. Basically, they are taking their tithe money and paying off the interest on their credit cards instead.

To sum it up, Bill Bright put it best: “Financial freedom is for every Christian steward who faithfully follows God’s plan for giving, saving and spending."

“Financial freedom means having enough to provide adequately for your household and to give generously and joyfully to God’s work.

“God wants you to be financially free so you can put Him first in your life and be sensitive to His voice, ready to follow Him whenever – and wherever – He leads.”

David Lawson currently serves as the Sports Director of Christ's Church in Jacksonville, FL. He is passionate about helping people understand that true stewardship means everything we have comes from God (our health, money, relationships, etc) and must be used for his honor and glory. David is a certified financial counselor and trainer through Dave Ramsey’s Financial Peace program. His wife, Carrie, teaches special needs children through the public school system in Jacksonville.