Why is understanding covenant theology important for Christians?

Understanding covenant theology is crucial for Christians because it illuminates the overarching narrative of Scripture and God's redemptive plan. This framework allows believers to see how God's grace has consistently been at work throughout history, from the Old Testament to the New Testament. By recognizing the distinction between the covenant of works, which reveals human failure, and the covenant of grace, which reveals God's unmerited favor, Christians can have a clearer comprehension of their salvation. It underscores that all things are ordered according to God's sovereign will, providing assurance and security for believers as they navigate their faith, knowing that their relationship with God is grounded in His eternal promises rather than their performance.