Money, we all have our own individual habits just as we do in all aspects of daily life. Whilst some of us claim we simply aren’t ‘programmed to save’, others are able to hide the pennies away for a rainy day or something bigger. The University College London, in collaboration with the Open University and BBC Lab UK, conducted a study assessing why we have different attitudes towards money – investigating spending behaviours and the psychology behind it.
Interestingly the study revealed that there are four core attitudes that we adopt towards money, as based on our relationship with spending and the emotions we experience be it guilt or exhilaration after. The different psychologies were broken down as follows:
- Status spender – for this group, money essentially equals power. Whether it’s the latest model of smart phone or car, objects act as a symbol of your importance. Not all their spending habits are necessarily self indulgent – for the status spender it’s all about ‘flashing the cash’, which can mean they are often first to volunteer to pick up the bar tab or restaurant bill.
- Generous indulger – for this type of spender, showering a loved one with gifts is a means of expressing their emotions. Although spoiling others can give provide feelings of satisfaction, for some this becomes a substitute for real emotion.
- Secure saver – the value and safety money can afford is never overlooked by the secure saver as it offers an undeniable security. However over budgeting can sometimes cause individuals to miss out on priceless memories.
- Independence seeker – money functions as an escape from routine be that home or work commitments. Weekend outings and expensive hobbies offer a momentary break from the monotony of the working week.
As shown above, each spending behaviour has both its positives and negatives. Regardless of which category you find yourself in, the key to avoiding money worries is to develop a healthy relationship with money.
Household debt is a serious problem in the UK, with financial issues going beyond negative numbers in the bank account. On average the standard UK household owes £10,000 in debts through personal loans and credit cards. Often financial debt problems can trigger serious emotional and psychological problems leading to depression and anxiety as suffers of debt feel there is no solution.
Here at Farleys Solicitors our specialist Personal Insolvency department have a wealth of experience advising those struggling with debts and finances. Our bankruptcy solicitors are based in Manchester and can provide tailored solutions based on your personal circumstances. If you’re struggling with debt please don’t hesitate to contact a member of our dedicated team on 0845 050 1958. Alternatively please complete the online enquiry form.