Every relationship has its dynamics.
Just as it is important to know the love language of the next person in a relationship, understanding your money personality clarifies a lot of things.
To have a better relationship with your money, experts advise that one traces back their early habits with it.
This affects how one approaches, behaves and relates with their pocket and bank account, encompassing what is referred to as a money personality.
During the Metropolitan savings round table discussing the psychology around money and the role of financial advice, these personalities were highlighted.
“The psychology of money refers to how our psychological make-up impacts our relationship with money. The first thing to note is that how we relate to money is normally socialized in the family of origin. The most significant observations are from our parents, family, friends and community,” says clinical psychologist Bradley Daniels.
“For example, if we observe our parents spending money impulsively, we too may adopt the same behavioral pattern or choose the extreme opposite and become quite frugal,” he adds.
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These include the following; the big spenders, savers, shoppers, debtors and investors.
Big spenders like nice things such as fancy cars, high-end brand clothing, luxurious items, and the latest gadgets. They typically do not spare an expense when it comes to their opulent needs, and they are not bargain hunters. They are comfortable with spending money, not afraid of taking on debt and at times making risky investments.
Savers are the opposite of the big spender. They are the first ones to switch off the lights and the geysers when not in use. They will rarely make purchases on credit, and are often wrongly viewed as the “cheap skates” in our families. Savers derive more pleasure from seeing how much they have saved and the interest that is accumulating in their savings’ accounts.
Shoppers derive great pleasure from spending money. They find it difficult to resist shopping; and often find themselves buying things they don’t need. This addictive shopping can lead to them accumulating large amounts of debts. Shoppers have a huge positive side in that they are often good at bargain hunting.
Debtors are not concerned about making a statement about their purchases and they also don’t shop to entertain themselves as the shoppers would. The most significant trait about the debtor personality is that they do not spend much time to reflect on how they use their money and when they use their money. Typically, they may be someone who does not ever draw up a budget, never mind stick to it. They can accumulate dangerous amounts of debt simply by not being mindful with their money.
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Investors are very aware and conscious of money. They have a good understanding of their financial position and have strategies in which they see themselves using their money to make more money for themselves - by investing or using capital to start a small business which will generate more income. The investor personality often spends time making careful considerations of the best ways to use their money to make more money.
Although these personality types are not definitive, one can have more than one personality trait.
