Ever wonder why one person is a big spender, another is a big saver, and yet another wants to stick her head in the sand about her finances?
Well, what we believe about money impacts how we handle it.
Underneath our potentially negative money behaviors (spending too much, hoarding, anxiety) lie our foundational money beliefs. If you can figure out what you believe, you’ll be one step closer to tackling your money woes.
A famous study conducted by Kansas State University and the Klontz Consulting Group examined our core money beliefs. The researchers argue that we have become so ingrained with the idea that having money is important, we no longer question why. Perhaps what we are truly seeking is an increase in self-respect, or security, or freedom, or love, or power.
The researchers identified four core beliefs. These money beliefs are usually established at childhood, and while they go unexamined for most of our adult lives, they drive our financial behavior and habits. Don’t blame everything on mom and dad, though—a look at two siblings’ financial habits shows that the same upbringing can be processed differently by two different personalities.
Grab a pen and paper and take our quiz (a modified version of the test from Klontz’s study), and see which belief pattern fits you. Answer instinctively and completely honestly—you’re not answering to impress anyone, but to see what may be holding you back from total financial health and freedom.
It’s common to hold more than one belief, and sometimes our beliefs reflect the current financial season we’re in. So feel free to revisit this test every now and then to see how you’re doing.
Score each statement from one to five, one meaning you strongly disagree, and five meaning you strongly agree.