Feel you are bad with money, and see shopping as retail therapy? These wrong views on money could hinder your savings.
Feel you are bad with money, and see shopping as retail therapy? These wrong views on money could hinder your savings.
Blame it on your parents because behaviour experts from the University of Cambridge believe that your views on money are shaped by the time you turn seven. “It is not what parents say but also what they do – for example, parents who always give in to children’s requests for impulsive purchases like candies and toys at the supermarket, are telling their kids that instant gratification is okay,” explains Dr Kym Irving from the Business School at Queensland University of Technology, “Research shows that the inability to delay gratification is linked to difficulties saving up, increasing debts, and gambling in later life.”
Here, we identify bad perceptions and beliefs learned in childhood and how to shift them for the better.
You think…
“SHOPPING IS RETAIL THERAPY”
You should think…
“SHOPPING IS ONLY A TEMPORARY RELIEF”
Many of us are mistaken that buying new stuff will make us happy. “Buying things might make you feel better, but only temporarily,” says David Penglase, author of Intentionomics ($31.96, from Books Kinokuniya). Be aware of your emotions when spending, adds Dr Irving. “If impulsive shopping is a means to make you feel better, try something else like watching a movie, chatting with a friend, or going for a walk,” she advises.
You think…
“MY FINANCES ARE PERSONAL”
You should think…
“MY FINANCES COULD USE SOME HELP”
Research shows that the top four reasons for relationship difficulties are financial stress, communication difficulties, different expectations and values, and a lack of trust. Relationship experts encourage couples to make time to discuss finances so you’re both on the same page when it comes to goals and expectations. Hiding receipts from your husband, setting up secret bank accounts and sneaking spending (or savings) can put undue strain on a marriage that’s supposed to be based on trust.
You think…
“WOMEN ARE BAD WITH MONEY”
You should think…
“WOMEN ARE GOOD LEARNERS”
Statistics show that women score lower in financial literacy. But researchers think it has to do with income and education rather than gender alone. Women are likely to find money matters stressful, uncomfortable or boring, plus they also have lower earnings, more interruptions to their career and have a higher chance of outliving their savings than men. Consider what you can do to make up for these lapses and accessing educational resources such as MoneySE NSE (www.moneysense.gov.sg), a national financial education programme for Singaporeans, to help you manage your money better.
You think…
“I CAN’T AFFORD IT”
You should think…
“I PREFER TO PRIORITISE”
There’s a difference between affordability and wisdom when it comes to buying something. “Rather than telling yourself you can’t afford something, it’s better to admit that it’s not something you want to spend money on and think of the things that have higher priority for their ability to enrich your life,” says David. It helps to reframe what prosperity means to you – and it doesn’t always mean luxury like driving a continental car or living in a condo. “Prosperity is having a happy, fulfilling life with enough money to enjoy experiences with your loved ones.”
You think…
“I’LL NEVER BE RICH”
You should think…
“I DON’T HAVE TO BE RICH”
If you feel slightly envious of what money can buy the rich and famous, you could be falling into the trap of spending for the sake of appearance or to keep up with your friends. Dr Irving recommends being realistic when appraising your financial situation. “Rather than comparing yourself to others, identify what your values and goals in life are, and how these might be achieved,” she says. “Research shows that individuals who set realistic financial goals that are linked to their values are more satisfied with their financial health.”
You think…
“IT’S RUDE TO TALK ABOUT MONEY”
You should think…
“IT’S OK TO TALK ABOUT MONEY”
Most of us grew up clueless about finance. “Money is somehow seen as a dirty subject and that’s made many people unaware how much they don’t know about money,” says Mark San Martin, author of ebook Hindsight Now and founder of online budgeting tool Squirrelr. “The best way to access information is to ask for help. Some people think financial advisors are only for people who have lots of money but there are some excellent resources for average people who want to be debt-free and make the most of what they earn.” W
DIGITAL BONUS
Click here for seven useful tips to avoid being in a debt trap.
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