Talk about “money personalities” might seem silly to some. But an earnest exploration can lead to insights on how to raise resilient and well-adjusted kids, especially if they are being raised in families with significant wealth, some of which will pass on to them. As the ancient Greeks said, true knowledge starts with knowing yourself.
To help things along, consider this basic “Money Personality” quiz. Quizzes such as this are intended to reveal tendencies. And let’s face it. Those tendencies do not usually come as a surprise. We tend to know if we’re too tight or too loose with money, and so does our partner in life.
Say you know yourself to be very conversative about spending money (aka a “saver”). That tendency is generally a net positive. But it can also have some downsides such as foregoing spending on things and experiences that enhance life, not to mention passing up on once-in-a-lifetime travel or other opportunities. In this case, what you perhaps could have used more at a young age is more encouragement to SPEND constructively and SHARE.
Offsetting the Negative
Children’s money personalities tend to show quite young, before age 5, and children raised in the same family can have very different money personalities. Each money personality has both positive and negative attributes (to view, scroll down in the Money Personality Quiz). What parents can do is to accentuate the positive aspects, while helping to offset the negative.
Encouraging kids to pursue their interests at a young age can be a great way to balance out their tendencies when it comes to money. If your young Spender loves to tap dance, she’ll find it a lot easier to SAVE for a dance event or GIVE to a dance fundraiser. Or if your Saver/Security seeker is into soccer, encourage him to SPEND or GIVE some of his money/time to soccer-related events.
So next time you’re reading a book, blog post or article about raising money wise kids, keep your child’s personality in mind. If your son is prone to overspend, you might want to encourage him to save or give in different ways. If your daughter is an enthusiastic saver at heart, great! Focus more on ways to engage her in smart spending, giving and sharing, all tied to her interests.
