The Personality Types of Money
Did you know that our personality effects how we manage our money? Some people naturally gravitate toward excessive spending, while others may naturally follow a frugal lifestyle. There are people that feel anxiety, guilt or regret when spending money, while other personalities feel joy and contentment when making a fiscal transaction. It is important to recognize how your personality might impact your financial management. In this article, we will look at how psychology overlaps with finances, also known as the study of behavioral finance.
The Myers-Briggs Company which created the Myers-Briggs Type Indicator personality test partnered up with Goldman Sachs, an investment banking firm, to create a short survey to help people identify their financial personality type. There is no “correct” financial personality type. This test, along with this article, should be used to help you recognize your strengths and weaknesses so that you may become aware of how your personality might affect your money management.
Take the ten question test to find out your financial personality type here: https://www.marcus.com/us/en/resources/lifestyle/discover-your-financial-personality
This test recognizes four types of financial personalities.
- Confident Money Manager – This personality type gets excited about managing their finances.
- Value Based Planner –This personality type is future-oriented and is passionate about charitable giving.
- Laid Back Balancer – This personality type is very relaxed when it comes to managing money.
- Short Term Strategist – This personality type is careful and cautious with their finances.
As you might assume, there are strengths and challenges to each financial personality type. Below is an overview of those strengths and challenges.
| TYPE 1: CONFIDENT MONEY MANAGER | |
|---|---|
| Strengths | Challenges |
| Confident – This type is confident that they can manage their money wisely | Overconfidence – Might not consult outside opinions and/or approaches because you believe you have all the information |
| Interested & Engaged in Financial Management – This type might find it beneficial to follow a detailed budget or plan to guide decisions | Quick Decision – Might move too quickly through a decision just to receive clarity |
| Traditionalist – This type might plan to build long-term wealth | Overanalyzing – Might be unable to decide due to fear of failure |
| TYPE 2: VALUE BASED PLANNER | |
|---|---|
| Strengths | Challenges |
| Planning for the Long Term – This type likes to save early for long-term goals, while simultaneously working on short-term goals | Daily Disinterest – Might not have interest in daily details of a budget |
| Interest in Money Management – This type might be interested in finances | Quick Decision-Making Skills – May be quick to decide so that they don’t have to process the information |
| Lending A Helping Hand – This type might plan to build long-term wealth | Missing Pieces – Might overlook financial details |
| TYPE 3: LAID BACK BALANCER | |
|---|---|
| Strengths | Challenges |
| Relaxed Approach – This type isn’t as stressed about finances | Daily Disinterest – Might have lower levels or disinterest in financial management |
| Confident – This type could be a default, but confident in their laid-back approach | Missing Pieces – Might not be up to date with debt or spending levels |
| Values Driven – This type revolves around their values | Timely Decision Making – Might forget to make payments on bills or forget to make a financial decision before it’s too late |
| TYPE 4: SHORT TERM STRATEGIST | |
|---|---|
| Strengths | Challenges |
| Confident – This type finds confidence in researching financial topics | Over-Evaluation – Might not be ablet to make a decision because they can’t stop researching topic |
| Flexible – This type focuses on short-term gains and is willing to change long-term goals to meet short-term goals | Over-Analyze – Might mull over simple decisions for too long |
| Interested & Engaged – This type strives to be educated about finances and potential opportunities | Non-Committal – Might be challenging to stick to one plan based on new information received |
It is important to note that you may have traits from all four of these personality types. After you complete the personality test, I encourage you to reevaluate your finainces and affirm what you are doing well and bring to light what areas could improve.
Citation:
Gravier, E. (2021, March 9). In just 5 minutes, this quiz can reveal your financial personality type. CNBC. Retrieved February 15, 2023, from https://www.cnbc.com/select/financial-personality-quiz/