A few months ago, we wrote an article where we explained the importance of understanding the way you (and your family) view money, and the role it plays in your household.
A recent study between University College London, the Open University, and BBC Lab UK showed that the way people saw money greatly affected their spending habits.
The study showed when people see money as security, it reduces the risk of financial problems. Alternatively, when people see money as a means of power or status, it can increase the risk of financial problems.
The study also concluded that there are four distinct ways that people look at money. Some people constantly worry about how much money they spend, other people buy things to make themselves feel better, where as others are in absolute denial about their spending habits.
Read on to see what type of spender you are, and if you should think about changing the way you see money.
4 Ways To See Money
Here’s four ways people look at money according to the study participants:
Status spenders: See money as a status symbol, a tool to influence or impress others.
Secure savers: See money as a source of security. Secure savers are more comfortable saving money even if they’re not saving for anything in particular.
Independence lovers: Hedonistic type people, living only for the present day without any thought for future financial security.
Generous indulgers: Love spending money on others as a way to show affection and appreciation.
Now that we’ve explored the four ways people view money, let’s look at different behaviour types when it comes to shopping:
Fanatical shoppers: Shop frequently. Often, these types of shoppers “accidentally” purchase a lot more than they originally intended. For example, they might enter a store to buy a pair of shoes but end up buying an entire wardrobe and more.
Frugal shoppers: Will do everything to save money. They generally spend hours comparing prices in store or online, to ensure they get the best price. Additionally, they might drive across town to save a few cents on an item despite that it took a lot longer.
Escapist shoppers: Believe in “retail therapy”, by creating a distraction from their job or personal life through spending money.
Reluctant shoppers: Apprehensive about spending money, and will put off purchasing until the very last minute. For example, this type of person may delay purchasing an airline ticket until the last minute, or if they are in need of a new pair of shoes, they will wait until their current pair is completely worn out before upgrading.
Self-esteem shoppers: These types shop as a way to boost their self-confidence, often buying expensive clothes or items in an attempt to make themselves feel better.
So, what about you? Whatever the type you are, it’s good to be aware of your spending behaviours and the way you view money.