Should Christians invest in the stock market?

What does the Bible say about investing?

While the Bible doesn’t speak directly about the stock market, it does have a lot to say about how we use our money. One of Jesus’ most compelling teachings on money comes from the Parable of the Talents (Matthew 25:14–30), where a master entrusts money to his servants and expects them to use it wisely and profitably.

We all have a responsibility to invest for a ‘good return’. When considering what this means, we need to think big. Jesus calls us to invest for eternity, not for now. When making a financial decision, it’s helpful to consider:

• How will this decision show my love for God?
• How will it reflect my love for other people?
• How will it demonstrate that I’ve got different priorities from the world around me?

Understanding investment options

With these principles as a foundation, it’s important to understand the benefits of the different investment and savings options available so you can choose which ones are right for you.

Stocks and shares: playing the long game

Investing in the stock market can offer higher returns than traditional savings accounts, but it comes with greater risk. Here are a few things to keep in mind:

• Volatility is normal. The value of stocks can rise and fall in the short term, so it’s important to view this kind of investment as a long-term commitment.
• Diversification matters. A well-diversified portfolio spreads risk and can improve the likelihood of a positive return over time.

Like it or not, most of us are heavily invested in the stock market via our personal pensions. Every day your pension provider is making important decisions on your behalf about where to invest your largest cash asset. There’s a danger that Christians, along with most others, can be ignorant about what the money God has given us to steward is supporting.

Keeping cash: stability with lower returns

Holding your money in a savings account with a bank or building society offers a safer alternative:

• Low risk. These accounts guarantee your capital and offer a modest but stable return through interest.
• Good for short-term goals. If you’re saving for a specific purchase or emergency fund, keeping your money accessible and secure might be best.

ISAs: Tax-free saving

Individual Savings Accounts (ISAs) can be a valuable tool:

• Tax advantages. Interest earned or capital gains aren’t taxed, increasing your return.
• Variety. There are different types of ISAs, including Cash ISAs, Stocks and Shares ISAs and Lifetime ISAs. Depending on your goals, one might suit you better than the other.
• Seek advice. It’s wise to speak to a financial adviser to ensure you’re choosing the right type of ISA for your situation.

Gospel-hearted thinking

While investing in stocks and shares or placing money in a high street bank account can be the right path to take, Christians have a radically different view of investment. It’s all the Lord’s money, so could you give it away to invest in Kingdom ministry rather than storing it up? Or, if you do need the money for the future, consider putting your savings to work for the gospel in a Kingdom Bank savings account rather than a secular bank?

How will you use the money the Lord has given you to invest for eternity?

Find out more about Kingdom Bank savings accounts here.

This blog was adapted from an interview with Paul Houghton on Premier Christian radio. To listen to the full interview, click here.

Kingdom Bank does not provide financial advice. Please seek independent financial advice as required when structuring your finances.