Discover your money personality.

Money matters
8 November 2019 |  5 min read 

 

Do you love a bargain, justify big-brand shopping as a true investment, or get greater satisfaction from viewing your savings account than a new purchase? Do you feel the thrill of spending, feel excited by investing, or empowered by saving?

Knowing your money personality type, and how it shapes your behaviour and relationship with money, may give you greater financial self-awareness and help you move closer to your money goals.

Your money personality type

Money habits may start early. Consider how you spent your pocket money. Did you run out and spend every cent? Did you buy presents for friends, or did you choose to put it in your piggybank?

While your habits may have changed, you most likely still have financial patterns and they may be guided by your money personality.

Researchers and financial psychologists have identified distinct money personality traits.¹

Among the many money personality types identified, the five major profiles² are: big spenders, savers, shoppers, debtors, and investors.

Find out your money personality and whether one, or more, categories sounds like you:

Big spenders

Happiness for big spenders includes spending money on the latest, exclusive, top-of-the-line purchase.

Big spenders like new gadgets, prestige cars, bespoke homewares and brand-name clothing.

Big spenders like to use money to make a statement.

Traits include being comfortable spending money, being prepared to take risks when investing and not fearing debt.

Practical suggestions for big spenders may include making simple savings where you can to free up money for the big-ticket items.

Savers

For savers, money may represent security.

Savers rarely make purchases with credit cards and rarely have much debt.

Savers may invest, but don’t like to take risks.

Practical suggestions for savers may include finding ways to invest for now and the future, with a comfortable level of risk of course, and enjoy the benefits of compound interest on your savings.

Shoppers

Shoppers often develop great emotional satisfaction from spending money.

Shoppers don’t want to think about organising finances. It is just too hard to resist the delight of spending, even if it is on unnecessary items.

Shoppers may use numerous credit cards, and may even be concerned about the debt being accumulated. But those concerns fizzle in the face of a good bargain.

Practical suggestions for shoppers may include choosing the right credit card for your spending habits.

Debtors

Debtors may often be broke and eagerly awaiting that next pay cycle. Debtors are not trying to make a statement by spending. Spending isn’t even for entertainment or to cheer themselves up.

Debtors simply don't spend much time thinking about money and therefore don't keep tabs on what they spend or where they spend it.

Debtors generally spend more than they earn and may be in debt.

Practical suggestions for debtors may include seeking financial advice to help you take control of your finances.

Investors

Investors are conscious of money, understand their finances and try to put their money to work. Investors trade frequently and with confidence and are highly engaged with their investments.

Regardless of how much investors earn, they are eager to put their money to work, sometimes starting small and growing their investments as they are able.

Investors’ actions are driven by decisions to grow their wealth, and that may mean deciding to accept a certain amount of risk in pursuit of their goals.

Practical suggestions for investors may include having a financial plan for every life stage.

Invest in yourself

Your money personality is part of who you are, so it’s not about changing you.

Whether you are a 100% match to one of the major money personality types, or a mixture, being aware of your money personality means you can take control, improve your spending patterns and feel more confident to invest in your financial wellbeing now and for the future.

---

1. Donnelly, G, Howell, R and Iyer, R, August 2012, The Big Five personality traits, material values, and financial well-being of self-described money managers, Journal of Economic Psychology, at www.researchgate.net/publication/248983549
2. Smith, L, 4 August 2019, What is your money personality type?, Investopedia at www.investopedia.com/articles/basics/07/money-personality.asp