Bradley R Daniels
Many people are not aware of the link of financial health to our overall wellness. Financial distress causes a significant increase in stress levels we experience in our lives- which impacts our health negatively.
People usually seek therapy when they feel stressed, depressed, or anxious. “Money worries” are often a significant contributing factor to increased levels of stress. The psychology of money gives us some insight to understanding this better.
The psychology of money refers to how our psychological make-up impacts our relationship with money. The first thing to note is that how we relate to money is normally socialised in the family of origin. In other words, we usually learn by observation what money is and its value.
The most significant learnings we make about money are through what we learn socially by observing how our parents, family, friends, and community relate to money. For example: if we observe our parents spending money impulsively, we too may adopt the same behavioral pattern or choose the extreme opposite and become quite frugal.
Why do so many people still struggle with managing their money effectively?
The challenge that many face in achieving their financial goals is that they tend to want to go at it on their own without the relevant support.
In South Africa, we certainly understand the great value that can be derived when we work collectively. We see this in the form of the classic ‘stokvel’ concept. We see this in employee benefits schemes where employees save collectively towards a pension scheme or medical scheme which the entire company contributes to.
There are informal ways in which we can work with appropriately selected individuals – whether family, friends, or colleagues – to start not just saving together, but also to hold each other accountable on how we work with money. Of course, it is important to be aware of your own money personality and that of the other parties involved.
The compatibility of the mix is crucial. Two shoppers together may have a lot of fun shopping. However, they may also create debt traps together. Perhaps a more optimal illustrative pair may be a saver and a shopper. Together they may balance each other out and so enhance each other’s financial realities into a more enjoyable and harmonious existence.
It is crucial that you become aware of how you were socialised into understanding money in your family or community context. Let go of the shame and guilt that you have developed around your finances and seek the appropriate support to help you turn your situation around. Whether you partner with appropriate family, friends or community members who have similar financial goals, support each other with your challenges on your journey.
Bradley R. Daniels- MA (CMHW) NYU is a clinical psychologist