Introduction to Financial Literacy and Numeracy

Financial:  The science or study of the management of funds

Literacy: Able to read and write ( or Ability to read and write)

Numeracy: ability to understand and  use numbers to make informed decisions.

The above definition would make you assume that those who pursue MBA, Accounting and and Finance etc, would be the most financially litrate.

The truth of the matter is, financial literacy and numeracy affects all people groups regardless of their level of education. That is why we see even those who work in financial institutions live pay cheque to pay cheque.

Why is this?

1)      System structure

The system is not broken it is doing what it was designed to do and delivering the results its meant to deliver.

2)      The intended end in our current education is a job.

3)      What is the end?

A). Lucrative Job

B). Security (assurance of earning monthly salary)

C). (Retirement through monthly savings) Guaranteed future

Results: Pay cheque

This perpetuates the idea of Scarcity, always busy to make ends meet until you have no vitality left and at the end of it, you struggle without an end in sight. 

Now when you are old and tired then they say now you are tired I mean retired and then that is the time to begin to do the things you really like to do.

What if you could have the resources you need to have and the time to enjoy and use those resources to do the things you like to do.

 Is this achievable for you?

Redefining Financial Literacy

“Financial literacy is not about how much you have or your level of education

“It’s about who you are, what you know, what you believe, and what you do with what you have.”

For years, we’ve been taught that financial literacy is the ability to manage resources, budgeting, saving, investing, and planning for the future.

 This definition assumes that you already have the resources to manage. It leaves out those struggling to survive.

What if you have no resources to budget?
No income to save?
No capital to invest?

This begs the question, what then is financial literacy?

Financial Literacy Redefined

Financial literacy is the ability to generate, manage, multiply and protect resources.
It’s not just about managing what you have—it’s about how to have what to manage.

It’s about understanding, how value is created, and how to turn ideas into cashflow.

How resources are generated

Ingredients for resource generation

1. 1. 1.      Identity
   2. 2.      Time
   3. 3.      Discipline (mindset)
   4. 4.      Awareness

Principles for resource generation

1). Multiplication

Multiplication as a Wealth Creation Principle isn’t just about arithmetic—it’s a mindset and strategy that underpins how wealth is built, scaled, and sustained. Here’s how it plays out:

What It Means

• Multiplication in wealth creation refers to using resources—money, time, skills, or networks in ways that generate exponential returns rather than linear results.
• It’s about leveraging what you have to produce more, often through compounding, reinvestment, or scalable systems.

 Core Strategies

• Investing Wisely: Putting money into assets that grow over time, Stocks, real estate, businesses, so your wealth multiplies through appreciation and dividends.
• Entrepreneurship: Building systems (like businesses or products) that generate income even when you’re not actively working. Think alternative income streams.
• Compounding: Reinvesting earnings to generate even more returns. Albert Einstein reportedly called compound interest the “eighth wonder of the world.”
• Skill Multiplication: Learning high-value skills that can be applied across domains—like negotiation, leadership, or coding, can multiply your earning potential.
• Network Effect: Surrounding yourself with people who elevate your thinking and opportunities. One good connection can open doors to many.
• Work on increasing your personal earning abilities through continued learning

Biblical Principle of Multiplication

Matthew:13:1-23

The parable of the Sower in the bible illustrates the effect of sowing (teaching the word of the Lord)and reaping in different types of soil or environments (Conditions of the heart). Directly applied, it refers to how we receive and retain the word of God in our hearts and have it bear or not fruit in our lives.

This same principle can also be applied to our physical world, farming, business and finance in general.

Sowing seeds: effort, money, time and in fertile ground (good business idea) to yield a multiplied harvest (profit) is a recurring theme in biblical finance teachings.

This same passage also cautions us on the deceitfulness of wealth

What does that mean, hoping to receive from wealth what only God can give, if you think that wealth will bring you contentment you are deceived, if you think wealth will bring you peace you are deceived or if tou thin wealth will bring you joy and fulfilled life you are deceived because those things can only be received from the Lord not wealth.

Deceitfulness of Wealth to those who set their hearts on Wealth, do not set your heart on anything except the fear of the Lord!

Those who set their hearts on food and love food with greed are called gluttons and gluttony is a sin before God, so shall we stop eating So that we are not perceived as gluttons? That would be us taking the verse out of its context.

I eat food because I am hungry and there are certain foods that I like, but I am not mastered by food.

This same principle applies to wealth, we ought to be content in the Lord with what we have.

Some people say, when I get rich I will be generous, the truth of the matter is wealth does not and will not make you more than what you already are. If you were a generous person when you were poor you will be more generous when you are wealthy, but if you were a greedy person wealth will make you more greedy.

If you were a discontent person when you were poor you will be more discontent when you are wealthy, if you are content like the wealthy Job, your source of contentment is God not wealth. So whether there is wealth today and its gone tomorrow you remain un shaken because your life and contentment did not depend on it!

In conclusion wealth will make you more of what you already are.

We work from Monday to Saturday and sometimes on Sundays too, to earn a pay cheque, and we can eagerly justify it saying, I am busy at work, I had to get the report in before the deadline, I couldn’t make it to church etc.

You are slaving for a pay check and have no control over your own time and life, and little time is set a side to seek first the kingdom. This way of life seems to be acceptable even in the church today, where our lack of engagement is justified by our busyness or Business and need to earn. Work can easily creep in and take the place of the Lord in our daily lives without even realising it.

Lets shoot for the balance,

Lets keeping God as the ultimate and the only master of our lives and nothing else, not a job, not wealth, not a sport, not food, not sex, women, men or power. That we may be mastered by nothing except our fear of the Lord!

By creating sources of income, you have to structure them in way that frees you to have more time not less time, more freedom to seek first the kingdom and do the things that will nurture your relationship with the Lord, family and others.

• “To those who use well what they are given, even more will be given…” (Matthew 25:29) captures the essence of multiplication through stewardship.

What to Avoid

• Overconsumption: Spending all your income leaves nothing to multiply. And hence create a cycle of pay cheque to pay cheque.
• Lack of Planning: Without clear goals and systems, multiplication becomes accidental or unsustainable.

Short-Term Thinking: Multiplication thrives on patience and long-term vision.

2). Compounding Principle:

The Lord Jesus through 12 disciples reached the entire world with the Gospel message, that is that effect of compounding. Each believer leading the next person to the Lord and the next convert leads the next convert, meanwhile the old converts also continue to convert and lead people to the Lord.

Think of creating one solid successful business, which will provide you with the capital to start  the 2nd brand new business. As the first business continues to grow and makes more money, the new business starts to make new money and grows to appoint where it is also funds the creation of the next brand new business. Meanwhile the first business continues to grow and to start brand new businesses. This is compounding growth.