I suggest reading all of Matthew 24 and 25 to gain context and familiarize yourself with the parables. You can read the NET Bible online.

Context

Matthew 24 prepares the reader for chapter 25. Matthew 25:1 begins, "At that time...." We read in chapter 24 that there will be much suffering, after which "all the tribes of the earth...will see the Son of Man arriving on the clouds of heaven with power and glory" (24:30). This is the Second Coming. No one knows when Christ will return (24:36), and some will be taken while some will be left (24:40-41). This event--when Christ returns and takes some and leaves others--is the time which Matthew 25:1 refers to. Notice that the timing of the Second Coming is known to no one, and it is when some will be taken and some will be left. Notice also that tribulation is described, along with the "abomination of desolation" (24:15), as occurring before the Second Coming. These events are part of Daniel's 70th week. This indicates a post-tribulation rapture, occuring simlutaneously with the Second Coming.

The Parable of the Talents

The parable of the talents describes the same events as the parable of the ten virgins--the events of the Second Coming of Christ. Questions about the parable tend to focus around the identification of the talents. Do they represent the Spirit? The Gospel? Good works? The matter is complicated by the differing number of talents given to each slave. What is the significance of the numbers/amounts?

It is important to recognize that it is not the number of talents which determines the destiny of the slaves, but the actions of the slaves themselves. The other important thing to note is that the destiny being determined here is eternal in nature. This parable speaks about Kingdom rewards. I believe we will gain a fuller grasp of the parable by examing its context.

The Parable of the Faithful and Wise Slave

Earlier, in Matthew 24:45-51, Jesus tells the parable of the faithful and wise slave. There are a number of similarities between this parable and the parable of the talents. Both involve a master going away for some time. Both involve the master entrusting his slaves with something. Both involve the master rewarding or punishing the slaves based upon what they do while he is away. Both involve the foolish slave perishing in hell. It might also be significant that both mention the slaves being in charge of food (more on this later).

The Sheep and the Goats

Christ separates the sheep and the goats based upon their actions. He mentions food, drink, invitations to strangers, clothing, caring for the sick, and prison visitations. Those who care for people in these ways will be the sheep and will be rewarded, and those who do not care for people in these ways will be condemned.

Faith and Works

Each of these three sections speaks about being judged based on actions. More specifically, they speak about people being judged based upon their faith, as evidenced by their works. There is a resemblance between these passages and James 2:14-26, which teaches that saving faith shows itself in works. Just as Jesus describes the evil slave as a hypocrite (24:51), and in the other sections speaks of food and clothing, so James speaks of those who say to others, "Go in peace, keep warm and eat well" but do not give them what they need.

The Connection

All of these passages fit together and provide context for the parable of the talents. They each describe the master judging the slaves according to what they do. Those who have true faith live out their faith and exhibit good works. Those who do not have saving faith are described as hypocrites. Because their works show that their faith is not real, they are condemned.

Explanation of the Parable of the Talents

The parable of the talents teaches us that people need to be ready for judgment when Christ returns. Those who are ready by having faith (shown through works) will be taken into the Kingdom, and those who are not ready (without faith, as shown by their works) are condemned. What, then, do the talents represent? Why were the two slaves given more than the one? What does the slave mean when he tells his master that he reaps where he doesn't sow?

As in all parables, there are details that are inconsequential. It is likely that the talents, and the different numbers of talents, are included in these irrelevant details. The point of the parable is not to tell us about what has been entrusted to us, but to point out that we are expected to live a certain way while Christ is away, and how we live is indicative of how genuine our faith is. This is the meaning of the evil slave's accusation leveled against the master (25:24-25). What is important is not how many talents the slave had to give to his master, but his heart condition towards his master. That is why the master responds in 26-27 with a better suggestion. If the evil slave's excuse in 24-25 were true, he could still have served his master by banking the talents for interest. Since he did not do this, the evil slave's hypocritical heart is exposed, and he is condemned.

The Talents

Without being dogmatic on the matter, I believe there are two possibilities for what the talents represent:

1. The talents do not represent anything specific, or if they do, it is insignificant, and Jesus' teaching can be understood without knowing the exact parallels. Christ will return, and those who have genuine faith will be taken into the Kingdom, while those who do not have saving faith will be condemned.
2. If the slaves of this parable are the same as the virgins in the preceding parable, then it is possible that the slaves are Jews. Israel is often spoken of in sexual terms, with terms such as whore, virgin, and adultery being thrown around. Further, Jesus' earthly ministry was focused on the Jews. If the slaves are Jews, then it is likely that the talents are the oracles of God spoken of in Romans 3:2. The Jews were entrusted with God's revelation in the Old Testament, being given the law, being spoken to by the prophets, and being given the responsibility of being God's light to the world. If the talents are the oracles of God, then the meaning of the parable is this: The Jews were given some of God's revelation of the truth. If they were responsible with what they were given, they would come to know Christ, and would enter into the kingdom. If they did not take advantage of the revelation entrusted to them, they would not be saved, and would not be saved.