Are you a money avoider? Here’s how to know your money personality.
Money avoiders shut down conversations around money. To them, anyone who tries to question their spending habits is intrusive. What they really avoid is holding themselves accountable for their poor spending habits.
Often, money avoiders are financially broke. They get very defensive when asked where their money went.
Most African households avoid having conversations around money.
Parents feel it is not their obligation to disclose their net worth to their children.
Conversations around debt only arise when a loved one is dead. The burden of debt is then transferred to the immediate family members.
Money conversations are difficult.
Many people think that conversations around money should be centred exclusively around investments or income opportunities. It is important to discuss debt, emergency funds, and savings.
Our households contribute to 99.9% of how we relate to money. Thus, many young adults have turned into money avoiders.
Spotting a money Avoider.
Try asking your parents if they have a retirement plan. If they turn defensive, your guess is good as mine. Here’s how to spot a money avoider;
1. They get very defensive when confronted about money.
Whenever questioned about their spending habits, money avoiders get angry. They throw tantrums and in extreme cases and can even turn violent.
It always feels like a personal attack when you question their spending.
Woe unto you if your spouse is a money avoider. Most divorces are attributed to finances. That is why financial literacy for couples is important.
In one village, a died. During the funeral arrangements, the family realized the man had gotten items on loan from the kiosks around to sustain their livelihoods. They were deeply in debt. The eldest son who was jobless had to shoulder the burden of paying back what he owed. No one deserves to inherit debt. Unfortunately, in many African households, this is very common.
When approaching a money avoider, try to be as reasonable as possible. They will try justifying their spending habits with any narratives in place.
Remember, it is not what you say but how you say it that influences change. Help money avoiders understand the importance of having money discussions.
2. Money avoiders are ever broke.
Wonder how someone is broke immediately after getting paid? Few days into the month, with wrong priorities money avoiders have nothing to show for their work.
Most money avoiders have wrong financial priorities. They make very poor financial choices.
A money avoider believes that the future is catered for. They assure everyone around them that they’ll make more money to cater to their needs.
3. Money avoiders easily get into debt
Anyone who fails to budget their spending can easily get into debt. Money avoiders do not budget, they do not know where exactly their money goes.
4. They fear investing
Most young people have limited knowledge of investment options. Steve Down argues that young adults have the best opportunity to learn from people around them on investing.
Young people inherit money beliefs and in turn fail to invest. If investing scares you chances are you are money avoided.
To learn more about money personalities, click here.
