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September 6, 2023 • 17 minutes
Whether you know if or not, you have a type – a money personality type. And, the attitudes you have about money will likely impact your retirement. Knowing and learning about your money personality type can help you avoid pitfalls and use your strengths to your advantage for a secure and happy future.
Your money personality type is determined by your beliefs, attitudes, values, and habits around money.
Your type has been forged since birth and is determined by your:
The tendencies of your parents and the circumstances you have experienced all come together to determine how and why you spend, earn, save and invest money.
Want to explore your type? Explore some of these 87 questions to help you understand your approach to money and wealth.
Money personalities have been defined in many different ways and, as in a personality quiz, many people will likely identify with several of the profiles. There is a lot of research, each with their own spin on personality definitions: money beliefs, spending and your personality, money personality traits, personality and debt, money personality and life satisfaction, personality and financial well being, and the list goes on…
Explore some of the types below and learn how to use your financial tendencies to your advantage for future wealth, security and happiness.
Big spenders are people who are not afraid to spend their money. And, so long as you don’t OVER spend, there is really nothing wrong with throwing your money around.
Some big spenders have had their needs met their whole lives – giving them no reason to fear poverty. Other big spenders grew up quite modestly and spend money to feel a sense of abundance they lacked growing up.
Pros: The big advantage of being a big spender is that you get what you want. And, being able to part with your money is a skill that not everyone has.
In fact, when it comes to retirement, many people actually can spend a lot more than they are planning on spending. Experts say that many retirees aren’t spending enough!
Cons: Overspending and going into debt is easy. Living on a budget without work income — a necessity in retirement — may come as a shock.
It is possible to have too much of a good thing. Over savers are likely to be people who count pennies. They are apt to turn off lights when leaving a room and shop with coupons. Savers usually avoid debt since paying interest is often akin to throwing money out the window.
Many savers have experienced financial hardship and they don’t want to ever experience that again.
For more perspective on over saving, explore: Advice from People Who Have Saved Too Much and How to Know if You Are Saving Too Much.
Pros: Savers know how to make the most of every dollar (and cents).
Cons: Savers sometimes miss out on enjoying life. And, they might be apt to delay retirement because they really fear spending their hard-earned assets.
Planning tips for over savers:
Some people are eagles – keeping a watchful and wise eye over every financial metric. They go beyond balancing their bank accounts, they monitor and manage every penny and carefully watch credit scores, rates of return, investment fees, tax liability and so much more.
Power planners are constantly weighing the trade offs of different financial strategies. They might even create their own spreadsheets and use multiple retirement and financial tools online.
Power planners want knowledge and control over all else. They create infinite contingency plans and can be pretty sure that there is no way they will ever run out of money.
Pros: Being on top of your money is great. Long term financial security can give you peace of mind and a great feeling of confidence. However, weekly or monthly checks ins are probably adequate. And, some data needs only a quarterly or annual analysis.
Cons: Sometimes it is better to set your financial plan and then forget about it. Reacting to financial information too often can cause bad long term decision making. Furthermore, some power planners can be like a bride or groom who obsesses over all the party planning details and aren’t prepared to really enjoy the party in a meaningful way.
Plannning tips for power planners:
Emotional shoppers are people who derive a lot of positive emotion from shopping. A new car, dressy shirt or even just a grande latte can give them an outsized emotional boost.
If you are on budget, extravagances are okay. But, emotional shoppers are also dangerous investors because they tend to overreact to market fluctuations.
Emotions – especially fear – are what cause people to sell low (and buy high) – which can have a devastating effect on your long term prosperity.
Pros: Emotions were once considered pretty negative. We now understand that when channeled appropriately, emotions can focus us into action.
Cons: There is nothing wrong with emotion, but understanding how it is motivating you can be useful.
Tips for emotional decision makers
Bargain hunters are always looking for the best deal. And, they sometimes buy things because they are a bargain, not because they need it.
Bargain hunter investors often buy low cost stocks that are actually a risky bet.
Pros: It is always good to look for good deals. No one should overpay for anything.
Cons: Bargain hunters are too focused on the price and not on actual value.
Planning tips for bargain hunters
Debtors are people who spend more than they earn. It might be circumstantial – your car breaks down and you need to get it fixed. Or, debt might happen because you just aren’t managing your monthly budget.
Pros: There is not really an upside to credit card debt. However, using credit to manage money is usually not a problem. And, using debt to acquire things you need and would spend money on otherwise – a house or car – can be an investment in your future self that pays off.
Cons: Debt is costly. You are using your hard-earned money to pay interest to use someone else’s money.
Tips for debtors
Sharers are people who love spending their money on other people. They might blow the budget over the holidays or contribute too much to a charitable fund. And, most commonly, sharers might over contribute to their children’s college expenses (or their parents care giving) over their own retirement savings.
Sharers might also scrimp on their retirement lifestyle so that they might be able to leave a larger inheritance to children.
Sharers sometimes just like giving. Other times they are looking to boost their ego with their largess.
Pros: Giving is one of the surest ways to boost happiness.
Cons: If you don’t have it to give, you are really hurting your short and long term financial stability.
Tips for sharers:
Risk takers are people who are willing to put their finances in danger in order to reap a higher return or bigger reward.
They might buy a home that is too expensive in the hopes that their incomes will increase over time. Or, they’ll invest in a stock at an early stage in the hopes that they will see massive returns. They might be willing to bet big on starting a retirement business.
Pros: No risk, no reward rings true. And, you need to invest aggressively enough to try to at least keep pace with inflation.
Cons: Taking risks is necessary sometimes, but you shouldn’t put money that you are going to need in peril.
Tips for Risk Takers:
The opposite of a risk taker is a conservative money manager. Conservative money managers are really worried about financial risk and often avoid putting their money to work.
You might think that these types are relatively rare. However, in 2017, 58% of Americans held investable assets in cash.
To be clear, cash is not a good retirement investment. Keeping your savings in cash is like holding onto seeds and never planting a garden. If you plant seeds and tend to them, they will not only produce more seeds but also plants and fruit or flowers. Similarly, if you invest your savings, you get investment returns that can be reinvested to keep growing more and more.
Pros: Being conservative is absolutely necessary with some of your finances.
Cons: Being conservative with your money can cost you in the long run. You need your money to work for you.
Funnily enough, the first piece of advice for conservative money managers is the same as it is for risk takers. Balancing risk and reward is important for most people:
You probably aren’t an ostrich if you are reading this article. Ostriches hide their heads from financial information.
They typically make ends meet month to month by luck or instinct, but do very little long term planning. Avoiders sometimes believe that they don’t deserve money or that money is not the most important thing in life. For an avoider, pursuing wealth can be as stressful as not having wealth.
Pros: Money avoiders don’t overtly worry about money, so that might be considered a plus.
Cons: While ostriches live seemingly care free, many have underlying financial stress. Ostriches often don’t save adequately for retirement and that can be a little nagging source of worry – whether they acknowledge the voice or not.
Tips for ostriches:
Know it alls are people who say that they know a lot about personal finance. They are quick with a stock tip, know the ins and outs of Roth conversions, and seem to have it all figured out.
And, some people do know a lot about personal finance. However, a 2017 survey suggests that financial literacy is lower than even most people might expect. Fidelity asked more than 2,000 people — half who were between the ages of 55 and 65 and not retired — questions in eight different retirement categories.
The average that people got right was a mere 30 percent. Absolutely nobody got all the questions correct and the highest overall grade was 79 percent.
Can you do better? Take the quiz now.
Pros: There is a lot to be said for having financial knowledge. Reading as much as possible will likely help you make better decisions.
Cons: It is probably better to acknowledge what you don’t know rather than think that you know it all.
Tips for know it alls
Optimizers are people who want to make all the “right” decisions. They want to allocate every dollar to maximize returns, minimize taxes, and spend at efficient levels. They want to get the most out of every dollar and every financial decision.
Pros: Optimizing to get the most out of your money can… get the most out of your money which most would agree is a great thing. And, many optimizers really love working on they financial plan. It is fun.
Cons: It can take a significant investment of time and emotion to optimize every single financial decision. It can be stressful and take you away from things that might matter more.
Did you identify with any (or a few) of these personality types? Did you learn anything that makes you want to change something in your Boldin Plan?
It might also be useful to run a Scenario in the Planner from a perspective that is different from your own. For example, if you are an optimizer, try running a scenario from a spender point of view. Assess what you learn. Use Scenario Comparisons to see the difference in outcomes and assess if there is anything you might want to change in your own baseline plan.
A: A money personality type reflects your money attitudes, values, and habits developed over time. It influences how you earn, spend, save, and invest.
A: Understanding your personality type can help tailor financial decisions that align with your behavior and goals. It helps you build a personalized retirement plan that fits your money habits.
A: Surveys show five common types: planners, savers, strugglers, impulsives, and deniers. Each type approaches retirement preparation differently, affecting confidence and readiness.
A: Yes. For example, planners tend to save and plan well in advance, while impulsive personality types may struggle without guardrails. Knowing your type shows where you may need extra structure or guidance.
A: You can assess your type through quizzes or reflective questions. Consider asking about your behavior toward risk, saving habits, emotional triggers, and how you plan financial goals.
A: It’s common for couples to have mismatched personalities around money. Recognizing the difference early helps you navigate financial decisions with communication and compromise.
A: Tools like the Boldin Retirement Planner adapt to your personality traits. For instance, if you spend impulsively, you can set clearer budgets or automate savings to stay on track.
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