August 17, 2017

What are money personalities and why do we care?

Money personalities are a group of common characteristics which, when grouped together, form a pattern that we adopt in “doing” money. We learn these patterns from our parents, our culture, our past experiences and from positive reinforcement. We become entrenched in our personal money style, convinced that the way WE handle money is the correct way.

This approach causes havoc in our relationships- our marriages, our work, our friendships. Our individual money style permeates the way we see money in our lives and creates a lens through which we view our life, our success and most importantly, influences how we judge others in our relationships. Let me give you an example:

Most of us have heard of savers and spenders. A saver gets a rush from saving money and the spender is the opposite as they get their adrenaline through spending money. As you may guess, this causes conflict, since each person “needs” to relate to money in the manner they have adopted. It is like when we see a goose imprinting on their parents and then habitually following them around. Remember the funny videos showing geese and ducks imprinting on an inanimate object which is meant to demonstrate a strong, committed psychological behavior. In this example, neither the saver nor spender feels it appropriate to talk about their different ways of “doing money” since their way is “right”.

The money conflict can grow so deep that fighting about money becomes the number one cause of separation and divorce.

According to a 2004 study by Smart Money Magazine, the top six money arguments that couples have are about merging their money, dealing with debts, budgeting, how to best invest, money secrets and planning for emergencies.”(Financial Post, July 16, 2013)

Finances are the leading cause of stress in a relationship, according to a survey of people in a relationship or partnership released Wednesday by SunTrust Bank.”(Kelley Holland, CNBC, Wed Jan 21 2015)

This first blog introduces the concept of money personalities and will be followed by ;

  1. A discussion of financial infidelity and why it is important to develop financial money conversation skills
  2. An overview of the  six commonly recognized money personalities,
  3. Followed by an individual account of each of the six money personalities including the strengths and challenges of each personality.

 

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