Money makes the world go round but everyone’s attitude toward money is going to be different. Some people love to splash out while others will penny-pinch and buy in bulk to save some money, they’re the two extremes of course as many people also fall into the middle. 

But even if you described yourself as neutral when it comes to money you are still going to have a slight preference one way or another. Some people are going to be a little more frugal while others might be a little more frivolous. 

But why do we all have different attitudes towards money? Is it down to how our parents raised us, is it because of our environment growing up or are psychological factors at play? Well really it’s a combination of all three and there is no one rule either. 

A person who grew up in a poorer household in a more impoverished environment is probably going to be more cautious when it comes to spending money and will have a stronger inclination towards saving. While someone who grew up in a wealthier home in a more affluent environment will usually be less cautious and more likely to spend.

However, this certainly won’t always be the case it’s simply something that can have an effect on a person’s attitude towards money. Let’s take a more in-depth look at the other factors, shall we?

Emotional Behaviours 

Our attitude towards money aren’t simply shaped by how we grew up, that might have an impact but it would be an oversimplification to say it’s the only thing that matters. Everyone will have some sort of emotional feeling towards money and this can change throughout your life. 

For example, you might feel like a sense of accomplishment when you reach a particular saving goal but the opposite is also true for people as well. Some people might feel a boost of happiness when they go out and buy themselves a new gadget or outfit. These emotional responses can easily shape how we save and spend.  

There are also cultural attitudes we should take into account as well as these can affect people’s individual emotional behaviour as well. Some people argue that the rise in social media as made image more important than ever so people are spending more money and leaning more towards instant consumption rather than saving. 

Problems With Extreme Spending/ Saving 

Being a little frugal or a little frivolous aren’t inherently bad attitudes towards money it’s all really down to personal preference. The problems with these attitudes are when they are taken to more extreme levels. 

Overspending can lead to a lot of problems, debts can spiral out of control and you can even be left homeless in more extreme cases. However, extreme saving can also be a problem it might not be as well publicised as people who spend too much but it can cause problems as well. Although on balance overspending is the more serious of the two. 

The issue with these two extremes is that many who fall into either category will say they are simply unable to stop. This is known as learned helplessness and is usually caused because someone lacks the confidence to save money themselves because they believe themselves incapable of doing so. 

This will be because they have been constantly supported or helped in the past. For example, if someone overspends but always as a friend or family member to help them cover their debts they won’t feel the need to save because they can always turn to someone else for cover. Over time this becomes learned behaviour that they will feel unable to break. 

However, nowadays there is more support available for people. There is much more choice when it comes to finical services and plenty of ways to help people save money like savings accounts for example. Extreme saving can be more difficult to conquer in some respects because the problems with it aren’t as well publicised but with support from friends and family, it can be done. 

In Conclusion, What Have We Learnt? 

So, what can we conclude about people’s attitudes towards money? Well, quite a lot really, people’s attitudes towards money are shaped by many things and they can change over time. Neither position is inherently bad or damaging either but you do have to be careful you don’t go too extreme and remember help and support is out there if you need it. 


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