By NYLAG Financial Counselor Margarita Pascual and Supervising Financial Counselor Ervis Burda
Do you ever feel like you have a love-hate relationship with money? You might be earning a decent income but struggle to make ends meet. If this sounds familiar, you are not alone!
In a recent CNBC survey 70% of American adults admit to being stressed about their personal finances. We all relate to money differently, depending on our experiences, upbringing, family, and culture, among other factors. These relationships can be complicated and make changing your financial habits difficult. However, exploring your money personality can be a great tool for understanding your relationship with money and taking control of your finances to achieve your goals.
A money personality is a set of beliefs, attitudes, and behaviors you have about money. There are many different money personalities, but here are some of the most common:
Money status: Those with a money status personality are motivated by social status and the way that money can make them feel important. They will often spend a lot of money on luxury items as status symbols, and they may be willing to take on debt to maintain a certain lifestyle.
- Tips for people with this personality: Implement a budget before making a purchase. When possible, save up for purchases instead of relying on debt or financing.
Money vigilance: People with a money vigilance personality are always worried about money. They may have grown up in a household where money was scarce, or they may have experienced financial hardship. They are often careful with spending and may have a tough time letting go of money, even when it is necessary.
- Tips for people with this personality: Embrace financial education and expand your knowledge through books, articles, podcasts, and individual counseling. A deeper understanding of personal finance can boost your confidence and help you overcome your personal money bias. It will also help you make informed decisions and feel more at ease managing your money.
Money avoidance: Those with a money avoidance personality typically ignore financial problems, do not track spending, may not pay bills on time, and even avoid talking about money altogether.
- Tips for people with this personality: Automate and simplify your finances by setting up automatic payments for bills and savings contributions. Automating your finances can help you stay organized, avoid late fees, and build a consistent saving habit.
Money worship: Those with a money worship personality believe money is the most important thing in life. They may work long hours to earn more money, sacrificing relationships, health, or happiness to accumulate wealth.
- Tips for people with this personality: Take a step back and evaluate your financial goals. Define what financial security means to you and identify specific objectives that are important to you, such as retirement, homeownership, and others. Having clear goals will give you a sense of purpose and direction.
You might be asking yourself: So, how do I know my money personality? One way to understand your relationship with money is by taking a quiz like this one. By knowing your money personality you can begin to understand your financial habits and make wiser financial decisions.
Still have questions?
It is important to remember that there is no right or wrong money personality. However, if your money personality is causing you financial problems, it may be helpful to talk to a financial counselor. Financial counseling can help you understand your relationship with money and develop healthier financial habits. Connect with a NYLAG financial counselor.