Which money type are you?

Hey there, time traveller!
This article was published 24/04/2024 (693 days ago), so information in it may no longer be current.

Dear Money Lady Readers,

I often get asked about how to help people deal with money issues, and many Canadians want to know how to change their partner’ habits, especially if they are savers and their partners are spenders.

Our financial decisions are often deeply rooted in what we’ve learned as children, including our past socio-economic status, culture, experiences, and our parent’s attitudes towards money. Let’s face it, life’s expensive – especially nowadays. It’s easy to go into debt without really indulging. We’re all trying to cut back and spend less, but understanding your relationship with money helps you find ways to improve your situations.

Researchers say there are seven distinct money personalities and, of course, some of us may be a combination of a few of these. Let’s look at them:

• First up is the worrier — This is someone who constantly worries about losing money. It doesn’t matter how much money they have – they are always worried about losing it. Typically, they lack the confidence to believe they can ever be financially stable, they are always preparing for the worst, always anxious, and always expecting a disaster to happen sometime soon.

• At the other end of the spectrum is the gambler — This type takes big risks with money, but also has extreme mood swings. Sure, they love the thrill of risky money moves but tend to crash hard when luck isn’t on their side. Be careful with this trait. Gamblers often go into debt or use savings to take more risks to make up for past losses.

• Then there’s the compulsive saver — This is someone who saves money endlessly and views their money as their security. These types will take being cheap to the next level. They’d wrestle a discount out of every sale if they could, and they’re happiest when they snag something for nothing.

• The opposite type is the compulsive spender — This is usually someone who spends when emotionally depressed or in need of immediate gratification. Even if they have a lot of debt, these spenders will continue to shop. In extreme cases, this person tends to hide large purchases from family and friends, and even though they feel remorse, they can’t stop, and are often at risk of going bankrupt.

• The compulsive money maker is next — This is someone who believes life is better when you earn more and could also be a workaholic. They believe their top priority is making more money and will want recognition for their financial success — for example, a trophy house, an expensive car, or a toy that represents their wealth.

• Next up is the person who is indifferent to money — These types rarely think about money, ever worry and are often not very responsible with their finances. They feel that money shouldn’t influence important decisions and usually believe they only need a modest amount of money to be happy.

• The last money is the saver and spender — This is probably most of us. Someone who saves a little and spends a little. These people are smart with their money most of the time but, given the right circumstances, will spend impulsively out of nowhere, and then regret it later.

So how did you do? Which trait do you most relate to? Once you have decided, try to see the differences between you and your partner and then you can work on a plan to help each other.