Saver vs. Spender
- Spender: the spender likes to spend and live life to the fullest in the moment
- Saver: the saver likes to save and prioritize
Take some time to discover your money preferences by answering the following questions about how you spend your time and money
What do you enjoy spending your money on?
In what ways are you a thoughtful spender?
What changes would you like to make in your spending habits?
Feelings about money
Sometimes our attitudes and the resulting emotional reactions can get in the way of achieving financial success. The way to alter our attitude toward money is to understand the values that lead to those attitudes. Our money values are influenced by several different factors:
- Family: The family in which a person is raised usually has the greatest influence on an individual’s values about money. Research finds that we are more like our parents than we might think. Our tendency to spend or save, the way we manage money, even the brands we choose, are strongly influenced by the choices our parents made, while we were growing up.
- Culture: An individual’s values are also influenced by cultural values. America has a culture of spending instead of saving. Since the explosion of easily available credit began in the 1980s, our cultural tendency has been to “buy now, pay later.” This has led Americans to owe approximately $1 trillion in credit card debt.
- Media: American movies and television shows are filled with images of “the good life.” The lifestyles depicted are often far from our reality. Yet these images deeply influence what we value and how we judge our level of success
Making spending decisions together
Once we have a greater understanding of our values and the factors that affect our attitudes about money we can make thoughtful decisions to help us reach our financial goals.
Here are some tips to help you get started:
- Tips for the Saver: listen to the spender, set aside money for activities which honor their free spirit and more impulsive purchases.
- Tips for the Spender: listen to the saver, consider values and goals and do your best to leave money alone that has been set aside to reach goals.
- Spending Plan: living paycheck to paycheck is stressful and can take a toll on the entire family. Consider both the saver and spender perspective in how you put together the plan. Be sure to include payments to your savings as well as money to be spent at will. A spending plan allows for greater flexibility by doing the things which matter most.
By working together it can maximize efforts towards financial health while giving everyone a voice and say.
If you need help getting started with a spending plan come and visit us in your neighborhood Financial Health Center where we are happy to help.