Your money personality can give you insight into how you can plan for your financial future. Knowing your partner’s personality type will help you avoid conflict, understand each other better and plan for your family’s financial future.
Not only that, understanding each other’s money personality will help you form your child’s money personality and shape their attitudes and behaviour towards money.
Money personality types differ depending on who you ask but the most common types tend to describe: savers; spenders; investors; avoiders.
There are a number of things you should ask yourself to determine your money personality.
- Do you budget and save diligently, and keep track of every dollar you earn and spend?;
- Do you keep a close eye on your investments?;
- Are you a big spender who lives pay day to pay day?;
- Do you prefer to ignore the topic of money altogether?
Your money personality will dictate the path you take to achieving your financial plans, which is why it’s crucial you have a clear understanding of not only your money personality, but your partner’s. Key to this is accepting that you and your partner will have your own preferences. The important thing is to learn how you use your differences to your advantage when planning.
If you have children, you might see their money personality starting to develop, or perhaps it’s already well ingrained. It’s important that you take an active role in shaping your child’s money personality early in his or her life and try to instil good money habits and values.
In order to have a positive influence on your child’s attitude towards their finances, it’s important they observe healthy money habits in the home from an early age. Open dialogue about how money is being spent is one way you can start influencing your child today. Equally, you may want to reward good behaviour or the completion of chores with money and teach them the value of saving for something they want. Having open conversations about money with your child will influence them not to be money avoiders.
For tailored advice on how to help your children improve their financial literacy, or if your kids have started working and are in a position to start formulating their own wealth creation plans, please contact your local financial adviser to arrange a time to discuss further.