Have you ever seen the Grand Canyon? I did this past summer with my parents, husband, and kids. It was on my bucket list and seeing it in person was breathtaking. This enormous natural wonder was primarily shaped by the Colorado River. Sure, wind played a role, but the river was the main driving force.
Your finances are similar to the Grand Canyon. While various factors have influenced where you are today, your money or financial mindset is primarily shaped by your childhood—what you saw and did growing up.
- Your Early Years and Your Wallet
- Your Role in Financial Learning
- Financial Mindset
- Making Every Dollar Work for You
Your Early Years and Your Wallet
Think back to your childhood. Did you see your parents saving diligently, spending freely, or struggling to manage their finances? These early experiences quietly but firmly set the stage for your adult financial life. Whether you realize it or not, they play a significant role in how you handle money today.
Your Role in Financial Learning
Did you have a savings account as a child that you interacted with? Did you learn the importance of saving for a new toy, or was money management done behind closed doors? If money was an open topic in your home, you likely have a decent understanding of your finances. But if money was a mystery, you might handle your finances messily and with confusion.
Awareness is the First Step
The good news is that once you realize your financial habits are outdated, you can start to change them. Understanding where these habits come from allows you to kick the bad ones and build healthier ones. It’s like getting an upgrade!
Understanding Financial Mindsets
Most of us learned how to handle money from older people in our lives. Just like learning to ride a bike, we developed what’s called a “financial mindset.” These mindsets can be as different as cats and dogs.
Consider this: if you’re a saver, you might look at spenders and think they’re out of their minds. Meanwhile, spenders might see savers as joyless penny-pinchers. It’s not about who’s right or wrong—it’s just different perspectives. Kind of like how some people swear by pineapple on pizza (really?) and others think it’s an abomination (and they are correct).
Changing Financial Mindsets
Shifting from a spender to a saver (or vice versa) can feel like learning a new language. For some, a new language is an exciting endeavor. For others, it’s more like being stuck in German 3 with no hope of passing. Instead of trying to learn a new language, let’s switch a few words around. Instead of “saving” and “spending,” focus on giving every dollar a job. Everyone understands the concept of a job—it’s something that works for you. Thanks to Jesse Mecham, founder of YNAB, for this insight!
Making Every Dollar Work for You
Next time you’re tempted to blow your paycheck, try this: give that money a job. Maybe it’s working towards a vacation fund, or perhaps it’s for that boring car insurance. By assigning a purpose to every dollar, you’re essentially saving without calling it that. It’s like sneaking vegetables into your kid’s muffins—they’ll never know it’s good for them. Remember, it’s not about how you start, but how you finish. It isn’t always easy to do this on your own! Feel free to reach out and set up a quick call to see if working together will help put you on a positive financial mindset path!
👉 Want more tips for understanding your money? Join my “TIPS & TIDBITS” email group for advice that makes managing money easier for the whole family.
