The Traits of 5 Money Personality Types: What Does Yours Say About How You Handle Money?
Sometimes, money is more than money. The way you think about it (or don’t think about it), prioritize it (or don’t prioritize it), spend it (or don’t spend it), and save it (or don’t save it) can reflect aspects of your personality.
Learning more about the various personality types around money – and where you fall into the spectrum – can be a first step in healing, or strengthening, your relationship to money.
Trending Now: How To Triple Your Savings: 8 Proven Techniques for Financial Success
Be Aware: 7 Unusual Ways To Make Extra Money (That Actually Work)
Financial experts and professionals encounter people with different personalities around money – sometimes within mere hours.
So, GOBankingRates talked to experts about some unique personality types around money to get a sense of their strengths and areas of healing.
Sponsored: Credit card debt keeping you up at night? Find out if you can reduce your debt with these 3 steps
The Compulsive Saver
One of the most common personalities Taylor Kovar, CFP, the founder and CEO of 11 Financial and the CEO of The Money Couple has observed that money is a compulsive saver.
Explore More: You Can Get These 3 Debts Canceled Forever
Compulsive savers align with a drive to seek security in money.
“They prioritize stability and security, often opting for low-risk investments and maintaining a sizable emergency fund,” said Kovar. “They are cautious spenders, preferring to save rather than spend impulsively, reflecting their desire for financial safety and peace of mind.”
The Anxious Planners
As a trauma-informed finance professional at the Money Mindset Hub, Alejandra Rojas encourages her clients to consider how their childhood circumstances shaped their adult relationships with money.
She said that people always anticipating what could go wrong with their money and waiting for the other shoe to drop might be primed to expect the worst-case scenario from their youth.
“The way our parents or caregivers managed money plays a crucial role in shaping our financial habits today,” said Rojas. “For instance, growing up in a family that constantly struggled with money might lead someone to be very cautious with their finances, always looking to hold tight to money because they’ve learned to view money as a scarce resource.”
When working with clients who have anxiety around money for any reason, Rojas encourages them to see their past issues with money as old memories and learn how to separate deeper emotions from those memories.
The Strategic Planners
One of the healthier personality types around money is the strategic planner, who applies logic and care to their finances without catastrophizing. According to Kovar, while strategic planners seek security with their money, they emphasize methodical and disciplined financial planning.
“They set clear financial goals, create detailed budgets, and regularly review their progress,” he said. “They prioritize long-term financial security and are willing to make sacrifices in the present to achieve their goals, reflecting their desire for stability and control.”
The Big Spender
While it’s easy to dismiss people who are free with their spending as careless with their money – or the life of the party – sometimes, there are more complicated reasons for overspending.
Rojas suggested that certain big spenders might be opening their wallets today out of anxiety about what tomorrow might hold. She added that some people spend money for a more immediate pleasure.
“Others spend freely, enjoying their money to feel good about having it,” said Rojas. “The uncertainty around the future creates the urge to spend it now.”
She recommended that people attempting to heal their relationships with money start by becoming more aware of their financial habits. Keeping a journal focused on your emotions and thoughts about money, while reflecting on your actions in certain situations, can be a powerful way to begin.
“By documenting and reflecting on your financial journey, you begin to uncover patterns and triggers that may have been previously obscured,” said Rojas. “This awareness is the first step towards transforming your relationship with money.”
The Generous Giver
The generous giver is exactly what they sound like someone who prioritizes giving to charity and other causes they feel passionate about when financial planning. Of course, ensuring you’ve got your financial oxygen mask on before helping others is important.
But Kovar said that the healthier examples of generous givers, “strike a balance between saving for the future and enjoying life’s experiences, reflecting their desire to make a positive impact on others while also ensuring their own financial well-being.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: The Traits of 5 Money Personality Types: What Does Yours Say About How You Handle Money?
