Understanding Your Money Personality
Financial adviser, money educator, and mother-of-three Canna Campbell believes that everyone has a unique 'money personality' that influences their financial decisions and behaviors. This concept goes beyond the common assumption that financial struggles are solely due to insufficient income or poor saving habits. Instead, Canna suggests that understanding one's distinct approach to money can lead to better financial health and more effective strategies for managing wealth.
Canna compares a money personality to a financial star sign, offering insights into how individuals interact with their finances in both positive and negative ways. While most people may identify with one dominant style, she notes that many fall between two categories or even shift between personalities depending on life stages.
The Five Money Personalities
According to Canna, there are five broad money scopes, each with its own strengths and weaknesses:
- The Avoidant
- Someone who is almost completely disengaged from their finances.
- Strength: Quick to improve with support.
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Watch out for: Debt and financial stress.
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The Optimiser
- Strategic and well-informed, but prone to overthinking.
- Strength: Disciplined decision-maker.
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Watch out for: Missing opportunities through indecision.
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The YOLO (You Only Live Once)
- Lives for today and prioritises experiences over planning.
- Strength: Positive and present.
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Watch out for: Neglecting future finances.
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The Security Seeker
- Careful with money and focused on saving and stability.
- Strength: Excellent budgeting habits.
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Watch out for: Being too risk-averse.
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The Quiet Accumulator
- Patient, methodical, and committed to long-term wealth.
- Strength: Most likely to build lasting wealth.
- Watch out for: Forgetting to enjoy their money.
Why Your Childhood May Still Be Shaping Your Finances
Canna highlights that many of our attitudes towards money are formed long before we earn our first paycheck. She explains that childhood experiences, whether positive or negative, can have a lasting impact on our relationship with money. For example, growing up in poverty or witnessing parents struggle with financial issues can shape our financial behaviors.
However, Canna emphasizes that these experiences don't have to define a person's future. Many individuals use their challenging pasts as motivation to develop healthier financial habits and create the life they desire.
Can You Change Your Money Personality?
The good news, according to Canna, is that no money personality is fixed for life. True transformation begins with self-awareness and an honest conversation with oneself about what one values and what kind of future they want to create.
She encourages individuals to look deep into their habits, mindsets, and triggers, and to lean into vulnerability to determine what serves them or hinders their financial goals. While this process can be confronting, it is where the most significant transformations occur.
What Happens When Couples Have Opposite Money Personalities?
Financial differences are a common source of tension in relationships, but Canna insists they don't have to become a source of conflict. Understanding each other's money personality is helpful, but what matters more is understanding how and why these personalities are formed.
Through communication, openness, and a willingness to discuss fears and vulnerabilities around money, couples can create a shared vision and build financial confidence together.
The Simple Habits Everyone Should Adopt
Regardless of personality type, Canna recommends several habits that benefit everyone. The first step is setting a financial goal that genuinely excites you. She also believes everyone should understand exactly where their money is going by creating a budget, even if it's simply for clarity rather than restriction.
Once high-interest debt, such as credit cards and buy now, pay later balances, have been eliminated and emergency savings have been built, she recommends directing money towards investing, superannuation, or long-term savings.
Even the smallest changes when applied consistently can have an incredible impact over the long run. Canna also reminds people that most already know when their finances need attention. Living paycheck to paycheck, carrying old credit card debt, having no emergency fund, or not knowing where your superannuation is invested are all warning signs that shouldn't be ignored.
Most of us know deep down if we could be doing more to improve our finances.
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