Everyone agrees that financial education is a good thing.
Our financial lives are complex and the personal finance system takes advantage of people who are not able to navigate it.
So, money has a practical side to it and it’s important that we know how this part works.
But, just because money has numbers, that doesn’t mean it’s just about numbers.
The danger with this focus on the practical side is that it can lead you to believe that you understand money behaviour by understanding how money works.
And then, when you understand how money works but you still can’t engage with it – or you still feel uncomfortable – you can end up feeling like there must be something wrong with you.
I am an adult.
It’s only numbers.
Why can’t I do this?
What’s wrong with me?
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And the obvious answer is: I need to know more about money.
But what if that’s the wrong question?
Instead of asking:
“Do I need to learn more about how money works?”
What happens if we ask:
“Do I need to know more about money and me?”
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Your money behaviour is driven by your beliefs about what you can do, be, or have with money.
If you believe that money is about safety and security, then saving becomes easier because saving builds security. And spending can sometimes feel difficult because it feels like an attack on your security.
If you believe that money is for having fun and enjoyment, then spending is easy because the best time to have fun is right now. But saving is difficult because it feels like it’s restricting you.
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If you want to understand your money behaviour, try looking at your beliefs – not how money works.
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Most people start by taking the Money Type Quiz.
Or book a call
