Money means different things to different people. How we’ve seen money used or talked about throughout our childhood can have a profound effect on our attitudes to money as we get older. And can still have that effect, even when we’re old enough to retire!
Whether there was plenty or little money in your life growing up, we’ll have been influenced by how our caregivers approached money. And we’ll carry that with us unconsciously for the rest of our lives.
Money and our emotions
There are many different emotional tags we put on money. They’re not necessarily good or bad ones, but money will always trigger some kind of emotional response. Being able to look at our own behaviour and the way we use money can help us adapt and change when our income and situations change.
What sort of things do we think about money?
Here are some examples of attitudes towards money. You might see yourself here, or you might have your own to add to this list.
Money is...security
Needing to have enough money to feel secure is true for most people, of course – the world we live in dictates as much. But if you’ve experienced financial deprivation at a young age, for instance, it’s likely that you’ll be determined not to be without in future and make your decisions accordingly.
Money is...a necessary evil
Some of us who might view money in this way often feel there’s something immoral about liking money. Sometimes, people’s self-esteem only comes from the satisfaction of doing a great job, rather than the material wealth or otherwise that it could bring. This might lead to decision-making that leaves money too far down a priority list.
Money is...a consolation
We all know the phrase ‘retail therapy’ and we use it when we want to cheer ourselves up. This can be fine – mainly when we know we’re doing it. For some of us though, it’s an unconscious means of avoiding issues or problems. That can lead to decision-making that doesn’t think much about your future self. It can be unintentionally destructive to our longer-term plans.
Money is...self-esteem
For some of us, spending money boosts how we feel about ourselves. This is not necessarily unhealthy if we’re buying something you need, or really want. But if we’re looking to repeat that good feeling over and over by buying things we don’t need, then it can become more of a problem.
What it means for us
Awareness, more than anything, is the goal in identifying our own money beliefs. It’s not about judgement, or finger-pointing. And for lots of us, we’ll hold different beliefs on different days of the week, or have a combination of them.
The key thing is in the recognition. A private acknowledgement of our own attitudes when we make our financial decisions. This is so important at a time in life when the way we spend our money in retirement will determine how long we have the money for, and the kind of lifestyle we can enjoy.
Source: Crazy about Money by Maggie Baker PH.D.
Dont just take our word for it