When our habits and attitudes are combined, they influence our decisions and behaviors. The resulting habitudes are present in every aspect of our lives and are so much a part of who we are, we don't even notice them.
Money is one the most difficult topics to discuss, so understanding how your habits and attitudes influence your financial choices is key to finding financial freedom.
How do Money Habitudes Develop?
Your Money Habitudes determine how confidently and competently you manage your money. They're the result of the messages you receive and experiences you've had throughout your life.
Your personality, your family, and your personal experiences and influence your Money Habitudes. If you grow up with many positive experiences managing money is just one more task you would expect to do successfully. If you grow up with a lot of negative experiences, you may develop a negative attitude about your ability to manage money and your habit may be to avoid learning about money management or give up trying.
Society, community, culture, media, and religious/spiritual beliefs can also influence how you decide to manage your finances.
What are the Six Types of Money Habitudes?
When you experience the same financial challenges repeatedly, chances are your unique combination of habitudes are fulfilling an emotional need. By identifying the motivation and emotional payoff for your habitudes, you can start making realistic changes to your financial behaviors without sacrificing your emotional needs.
There are six core Money Habitudes, and people are typically a combination or two or more of the following:
Security
Money helps you feel safe and secure
Planning
Money helps you achieve your goals
Status
Money helps you create a positive image
Giving
Money helps you feel good by giving to others
Spontaneous
Money helps you to enjoy the moment
Carefree
Money is not a priority
Some Money Habitudes may look alike, but the behavior is motivated by different needs, wants and messages.
People with Security and Planning as dominant Habitudes may be thoughtful about how they spend and save money, be more conservative, and want all the facts before they make money moves. The difference is that Planning dominant people already have an idea or plan for using money and identified ways to achieve their plan. Security dominant people want to feel financially secure and prepare, however they may not have a plan beyond saving as much as possible.
People with Spontaneous and Carefree as dominant Habitudes may be able to respond quickly to others, situations and opportunities. They make choices that meet their immediate wants and needs which can leave them looking irresponsible and impulsive with their finances. The difference is that Spontaneous dominant people are focused on the moment. This may mean that even if they know what they "should" do, they may act on impulse and experience buyers remorse afterwards. Carefree dominant people simply don't want to deal with money or be responsible for it. They'll often let others take control of their finances.
People with Giving and Status as dominant Habitudes may both appear to be generous and thoughtful. Others depend on them and find them to be very reliable. The difference is that Giving dominant people give out of the joy of helping others to make life easier or better whether or not they can afford it. Status dominant people give to make a positive impression and either want to fit in with a group or stand out in a crowd.
But What Does This Mean?
Being successful in managing your money means you have to be aware of what motivates your behaviors, not just the behavior itself. By identifying the motivation and emotional payoffs for their seemingly irrational behavior, they can either work through those needs or use strategies to get their needs met in less financially demanding ways.
Where Can I Go to Learn More?
We know achieving financial success is easier when you have a financial partner who goes above and beyond traditional banking. This is why we've partnered with Banzai to bring you clear, in-depth lessons and resources to help you dive into the financial topics you care most about.
Azura members also have access to our team of Certified Credit Union Financial Counselors. They're available by appointment and their services are free of charge to members.
Our Financial Counselors are certified to assist you with:
- Creating a budget
- Understanding your credit report
- Managing your cash
- Setting financial goals and making a plan to achieve them
- Creating a savings plan
- Regaining control of your finances and getting out of debt
If you're a Washburn University student, we know you face unique challenges when it comes to managing finances while pursuing an education. That's why we've created a holistic program designed to address these challenges head-on.
Our WU Financial Wellness program at Washburn University is designed to offer financial-based education sessions, mentoring, and other resources for students.
Whether you're a first-year student or further along in your academic journey, our resources and support are here for you.
