Scientists have been trying to understand what causes some humans to either spend their money freely or save it securely.
And according to them, the main factors for spending habits are, ironically, not financial!
Have you ever been amazed or turned off by someone’s habits with finances? Maybe you love saving every penny for the near future, or you love to live life at the moment and spend almost everything. Whatever be your case, one always wonders what affects one to deal with finances?
Some of you may reckon about the significant factors of someone’s money spending habits. Many assume that people who spend too much maybe careless, reckless, or even people needing a lot of realistic simulation. While those who spend relatively a little and save a lot may be seen as miserly, not wanting to live in the moment, or even people who don’t where exactly to spend it.
But a recent study has discovered some answers to why people have different spending habits, and part of the reason is not actually from culture or personal needs, but rather from your upbringing, especially from the mother. Who knew that your financial behavior would lead to studies understanding psychological differences among humans!
Upbringing A Main Factor for Spending Habits
The pandemic has tempted many to spend more to keep themselves busy as life hasn’t returned to normalcy. From video game sales to pets to home devices, everything saw a surge during the pandemic. However, your habits also speak volumes about your ability to control yourself. Overspenders, be careful there!
Experts yet can’t understand why one ends up with the habit of overspending or over saving. However, they reckon that part of it is likely to be influenced by one’s family values. Scott Rick, an associate professor at the Michigan Ross School of Business, studies the emotional factors and consequences of a person’s financial usage orientation. He remarked, “Don’t particularly know why you end up with a hunch to splurge or save, but part of it perhaps has to do with your family, upbringing.”
Currently, the reason is being studied by researchers from behavior in children. However, initial data revealed that individuals tend to pick ways of spending from their mothers more than any other family member. So if you’re someone who saves too much to the point you may be called a miser, your mother most probably had followed the same financial path again.
According to Rick, one’s individual life experiences with money also play an essential role. If you were subjected to a substantial financial loss at any point in your time, then you may tend to become tighter or stingier with money. Sometimes, even when the situation evens out and turns better, one may still cling to the habit.
Ironically, Financial Income Doesn't Play a Role in Spending Habits
Sounds shocking right? Well, that’s what researchers suggest. It doesn’t matter if you’re a billionaire or not. Your monthly income has nothing to do with the amount you spend. According to Brad Klontz, a psychologist and founder of the Financial Psychology Institute, “All of these attributes make up your “money scripts,” or your beliefs and emotional connection to money.
They get accustomed as you go through life by watching other people, your culture, your neighborhood, and your friend group,” he added. However, your willingness to spend money depends on this significant factor, how physiologically uncomfortable you get when you have to pay for something you want to buy. This could be the sole determinant of what your personality most likely is too!
What Your Financial Habits Say About You
For those who love spending money, you could be carefree, free-spirited, and live in the present or the moment. This also means that if you were to see a lovely outfit on a mannequin, chances are, you have your company already in your hands, waiting to wear it at the perfect moment. However, this also means that you are someone who mostly doesn’t have self-control for yourself! This is a disastrous trait when it comes to being smart with savings and sometimes even yourself.
For those who are incredibly cautious with their savings to the point, it could physically hurt you or even stress out when it comes to spending money. You could be a more rational and planner. You could even possess a tremendous amount of Self-Control too. However, one of the downsides is that you could be prone to more over-thinking everything, especially when it comes to your future. Having trouble spending money also means that you could be a little less happy in your lives. However, having a little more in the bank account won’t hurt much.
If you’re someone who loves a healthy balance of both spending and saving, then hold it right there cause you’re going on the right track! However, suppose you’re someone who resorts to economical methods to save money, for example, fixing malfunctioned technology by yourself or even going to second-hand stores to buy something. In that case, you could have a lot in store for you. While it is good to be frugal, according to researchers, if you’re someone who is a frugal enthusiast and spending money is something that gives you the heebie-jeebies, then you most likely will be someone with little to no financial debts!