When it comes to taking charge of your relationship with money, you’ve probably heard the common — yet, sound — advice to focus on establishing financial literacy and comprehensive financial planning to allow you to allocate your assets in alignment with your goals.
But, an often overlooked key aspect of building healthy financial foundations is to understand yourself.
Your money personality is a crucial part of your financial journey. Each of us has a unique set of habits, attitudes, and beliefs that shape the way we handle our finances.
Your response to internal and external factors, how well you stick to your plan, how you spend your time and money, and how you invest will all significantly impact your bottom line. Once you understand your money personality, you can recognize limiting habits and traits that are holding you back and start to make better financial decisions.
Whether you’re a natural saver or someone who enjoys spontaneous spending, being aware of your money personality can help you navigate your financial journey much more effectively.
There are several models that can help identify your financial tendencies, from Money Habitudes and Money Archetypes to the Klontz Money Script Inventory (KMSI) and even personality frameworks like the OCEAN traits.
In this blog, we’ll explore these popular money personality models and how they impact your spending, saving, and investing decisions. By the end, we hope that you’ll see how understanding your money personality can empower you to make more informed choices and work with your financial planner to create a strategy tailored just for your money personality.
What are Money Personalities?
Your money personality is the unique blend of beliefs, habits, and emotions that shape how you think about and handle money. Your financial behaviors are often rooted in underlying patterns that have developed over time.
These patterns aren’t random — they are shaped by life experiences, cultural influences, and even your upbringing. Recognizing your money personality can help you make more informed financial decisions, avoid common pitfalls, and create a personalized financial strategy that aligns with your unique values and goals.
How Money Personalities Influence Financial Behavior
Understanding your money personality is kind of like understanding your emotional triggers — it can help you make sense of behaviors that may seem irrational on the surface.
For example, if you’re someone who tends to spend impulsively, it might not just be a matter of poor discipline. Your spending habits could be driven by a deeper need for emotional satisfaction or a way to cope with stress.
Similarly, if you’re hyper-focused on saving, it might be because financial security provides you with a sense of control, especially if you’ve experienced economic uncertainty in the past.
Here are a few ways your money personality can influence your financial life:
- Budgeting: Some personalities thrive on structure, making them natural budgeters, while others might resist the idea of strict financial boundaries and prefer flexibility.
- Spending and Saving: Your emotional relationship with money determines whether you’re more likely to save for the future or enjoy the present by spending freely.
- Investing: Risk tolerance varies widely across money personalities. Some people are comfortable with high-risk, high-reward investments, while others may shy away from anything that feels uncertain, which can be costly in the long run.
- Debt Management: Your approach to borrowing and debt is also shaped by your money personality. While some people may be comfortable with leveraging debt to achieve financial goals, others may avoid it at all costs, even when it’s beneficial.
Money Habitudes
Money Habitudes is a practical and accessible framework designed to help people understand their financial behaviors and motivations. Created by Syble Solomon, it categorizes individuals into six key money personality types, known as “Habitudes” — a blend of habits and attitudes toward money.
By identifying which Habitude(s) dominate your financial life, you can get insight into how you make decisions around spending, saving, investing, and managing financial stress. Each Habitude comes with its strengths and challenges, and understanding where you fall on this spectrum can empower you to make more balanced financial decisions.
Security
People with a Security Habitude prioritize financial stability and control, focusing on saving, budgeting, and planning for the future. They favor low-risk investments and maintain substantial emergency funds for peace of mind.
While they excel at protecting their finances, their caution can lead to missed opportunities for growth. To thrive, Security types need to balance their desire for safety with taking measured risks, allowing their wealth to grow while also enjoying it in the present.
Spontaneous
Spontaneous types thrive on the thrill of the moment, often making impulsive financial decisions that prioritize immediate gratification over long-term planning. Whether it’s an unplanned shopping spree, frequent dining out, or splurging on vacations, they seek instant joy in their spending.
While this spontaneity can add excitement to life, it also poses challenges, such as accumulating debt or falling short on savings for future goals. Sticking to a budget or saving for retirement may be difficult for them due to their focus on enjoying the present. To find balance, Spontaneous types can create “fun money” allowances—dedicated funds for flexible spending that still contribute to their long-term financial security.
The goal for a Spontaneous type is to strike a balance that allows for happiness now and in the future (a Life Money Balance®, if you will).
Selfless
People with a Selfless Habitude find fulfillment in using their money to help others. Whether supporting family and friends, donating to charities, or lending a hand in times of need, they feel a strong sense of purpose in sharing their resources. This generosity strengthens their relationships and aligns with their mission of contributing to the greater good.
Selfless types, however, may neglect their own financial health, giving away money they need for security or future goals. They often struggle to set boundaries, which can lead to financial strain.
To maintain financial balance, it’s essential for Selfless types to practice self-care alongside their charitable spirit. Setting a budget for giving can help them support causes and loved ones without compromising their own financial stability.
Status
The Status Habitude reflects a desire to use money to project wealth, success, and social standing. People with this money personality find joy in purchasing luxury items, the latest technology, or high-end experiences that enhance their image — motivated by the recognition associated with financial success and take pride in their high-value purchases.
While this mindset can drive them to achieve ambitious financial goals, it also risks overspending and financial instability if not managed carefully. The pressure to maintain a certain lifestyle can lead to debt and insufficient savings for long-term objectives like retirement.
To avoid these pitfalls, Status types should focus on financial habits that foster genuine wealth, ensuring their pursuit of prestige does not compromise their future security.
Free Spirit
Those with a Free Spirit Habitude often avoid thinking about money and take an unstructured approach to finances. They prefer to live in the moment, free from budgets or financial plans.
While this laid-back attitude helps them avoid money-related stress, it can also lead to significant financial instability. Free Spirits may find themselves living paycheck to paycheck, neglecting savings, and accumulating debt, which leaves them unprepared for emergencies or future goals like buying a home or retirement.
To break free from this cycle, Free Spirits can adopt simple habits, such as automated savings or collaborating with a financial planner, that allow them to maintain their freedom while building greater financial security.
Targeted Goals
People with a Targeted Goals Habitude are meticulous and detail-oriented in their finances. They thrive on structure, setting clear financial goals, and creating budgets or plans to achieve them.
Whether saving for retirement, managing daily expenses, or building wealth through investments, they exhibit strong discipline and commitment to their strategies. Their ability to anticipate future needs allows them to create effective long-term plans.
This strict focus on planning, however, can lead to challenges, such as being overly rigid when circumstances change or prioritizing saving at the expense of enjoying the present.
For those with a Targeted Goals Habitude, it’s important to try to incorporate flexibility into their financial plans and allocate funds for experiences that bring joy. At the end of the day, what good is a financial plan if it doesn’t make you happy?
Money Archetypes
Money Archetypes offer another perspective on understanding financial behavior.
The Eight Sacred Money Archetypes, developed by Denise Duffield-Thomas, provide insights into how individuals interact with money based on their beliefs and behaviors. Learning about your archetype can help you understand your financial habits and make more intentional choices
The Nurturer
Nurturers are compassionate and prioritize the needs of others. They find fulfillment in providing financial support to loved ones and charities, but this can strain their own finances. To thrive, Nurturers need to establish boundaries and prioritize their financial well-being.
The Romantic
Romantics view money as a means to enhance experiences and enjoyment. They often spend on luxuries and memorable moments, leading to potential financial challenges if overspending occurs. Romantics can break free from toxic money cycles by forming a balanced budgeting approach that allows for enjoyment while securing their future.
The Accumulator
As an Accumulator, saving, investing, and achieving financial stability are second nature. Their disciplined approach allows Accumulators to grow their resources effectively; however, it’s important to ensure that their focus on accumulation doesn’t overshadow other aspects of life.
The Alchemist
Alchemists are creative thinkers who view money with innovation and resourcefulness. They excel in entrepreneurial ventures, but they may overlook practical financial management. Balancing creativity with structured planning is essential for translating ideas into financial success.
The Celebrity
Celebrities are born to shine and embrace a lifestyle to enhance their self-image and status. They are comfortable spending money on luxury items and experiences that reflect their identity. While this can lead to a vibrant lifestyle, Celebrities need to balance spending with financial stability to avoid potential pitfalls.
The Ruler
Rulers are assertive and decisive, often taking charge of their own financial destinies. While skilled at planning, their need for control can lead to rigidity — too much of which can be a detriment. Practicing flexibility and collaboration is important to foster healthy relationships with money and others.
The Maverick
Mavericks thrive on risk and taking unconventional paths. They are not afraid to challenge norms and often find creative ways to attract and use money. While their adventurous spirit can lead to significant financial rewards, it’s vital for Mavericks to ensure that their risk-taking aligns with well-thought-out strategies to protect their future and build stability.
The Connector
Connectors prioritize relationships and understand how significant they can be for financial endeavors. They build and nurture connections that can lead to financial opportunities. Their ability to empathize and communicate effectively can open doors for collaboration and success, but Connectors need to maintain a balance between relationships and their own financial goals.
Klontz Money Style Inventory (KMSI)
The Klontz Money Script Inventory (KMSI) is a psychological tool designed to help individuals understand their beliefs and attitudes toward money. Developed by Dr. Brad Klontz and his colleagues, this inventory identifies unconscious scripts that influence financial behaviors and decisions.
Understanding these scripts is a critical step toward healthier financial behaviors and more fulfilling relationships with money.
The KMSI consists of various money scripts, categorized into four main themes:
- Money Avoidance: Those with this script often feel uncomfortable with money and may actively avoid financial discussions or responsibilities. They may believe that money is bad or that they don’t deserve it.
- Money Worship: Those with a money worship script often equate financial success with self-worth. They may obsess over wealth accumulation, believing that more money will solve their problems.
- Money Status: This script links personal identity and status to wealth. Individuals may prioritize spending on luxury items and experiences to maintain an image, often leading to financial strain.
- Money Vigilance: Money-vigilant individuals are usually more cautious and frugal, often fearing loss and instability. While this script promotes savings, it can also lead to an excessive focus on financial security at the expense of enjoyment.
Understanding OCEAN Traits
The OCEAN model, also known as the Big Five personality traits, provides a framework for understanding how personality influences financial behavior.
The acronym stands for Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism, each of which plays a role in shaping your financial decisions and attitudes.
Studies, like those performed by the Concurrent Financial Planning founder, Dr. Preston Cherry — alongside Sarah Asebedo — have shown the relationship between specific personality traits and financial decisions like purchasing life insurance and investing in long-term care (LTC).
For example, those who scored higher for Conscientiousness were more likely to invest in life insurance. In contrast, Neuroticism had a negative correlation with those who own life insurance, implying that individuals who experience more emotional instability or anxiety are less likely to own life insurance or invest in LTC.
Openness
People who are high in openness are typically more willing to explore new financial strategies, investments, and ideas. They may be more receptive to innovative approaches, such as impact investing or alternative financial products, which can enhance their financial portfolio.
Conscientiousness
Those with high conscientiousness tend to be disciplined and organized in their financial management. They are likely to set clear financial goals, create budgets, and adhere to long-term financial plans, which could lead to greater financial stability.
Extraversion
Extraverted people often value social interactions and may be more likely to share their financial decisions with others. This trait can encourage collaboration and networking, but it may also lead to impulsive spending if influenced by peers.
Agreeableness
Individuals high in agreeableness prioritize relationships and may make financial decisions that reflect their concern for others. While this can foster strong partnerships, it may also lead to compromises that do not align with their own financial goals.
Neuroticism
Those with high levels of neuroticism may experience anxiety related to financial matters, leading to avoidance or over-cautious behaviors. This trait can create barriers to effective financial planning and decision-making, but can also lead to under-spending.
Bottom Line
Understanding money personalities and archetypes is vital for effective financial decision-making. By recognizing your financial behaviors and beliefs through frameworks like Money Habitudes, Sacred Money Archetypes, the Klontz Money Script Inventory, or OCEAN traits, you can work to identify and overcome roadblocks that hold you back from achieving your financial goals.
The first step to breaking the cycles that you find yourself falling into is learning about yourself and how your brain works so that you can be mindful of money pits and more easily navigate your financial journey.
Having a deep knowledge of your financial personality can also help you work with your financial planner to allow for more tailored planning. Want to create a plan that works for you and your money personality? We’d love to set up a chat to see how we can best serve you!
