Understanding This About Yourself Will Help You Make Better Financial Decisions

how to manage your money
Isa Sorensen under Creative Commons

Do you feel like you keep making the same money mistakes over and over?

Maybe you put off asking for a raise, or maybe you find yourself swiping your credit card on yet another impulse buy.

Well, your financial decisions may have a lot to do with your personality, Redbook reports. Psychoanalyst Kachina Myers identifies four “Money Personalities,” as well as ways to understand and overcome the negative aspects of each personality.

Which money personality do you have, and what does it say about how you spend and save?

The Money Personalities

Myers lists the four money personalities as follows:

Financial Innocent

If you’re a financial innocent, you don’t like talking about — or even thinking about — money. You don’t comparison-shop and you don’t ask for raises.

Sometimes, you don’t even know how much money is in your bank account.

(If you’re one of the 4 out of 10 people who doesn’t know how much money your spouse makes, you’re probably a financial innocent.)


If you’re an overspender, you spend money as a way to feel good.

You’re likely to make impulse buys and use the phrase “retail therapy.” Bringing new things into your life gives you joy, but it also costs you a lot of money.

Poverty Addict

If you’re a poverty addict, you’re always afraid of running out of money — even when you have plenty.

You put off making purchases and avoid buying anything that feels like a “treat.” After all, you might need that money later.


If you’re money-codependent, you spend a lot of money on other people. You always volunteer to pick up the tab or bail out a friend, and you like to give people surprise gifts. You use money as a way to give and receive love.

Understanding Your Money Personality

Once you understand your money personality, you can learn how to overcome some of its negative aspects.

If you’re money-codependent, for example, remind yourself that your friends will still like you even if you don’t pay for their meals.

If you’re a poverty addict, it’s time to replace one worn-out household item (which, by the way, might save you money in the long run).

If you’re an overspender, tell yourself to wait 30 days before buying that new pair of shoes; you may find you don’t need them anymore.

If you’re a financial innocent, it’s time to set a meeting with your supervisor and ask for that raise!

Want to learn more? Read the full story at Redbook.

Your Turn: Which money personality do you have? Do you recognize yourself in any of these examples?

Nicole Dieker is a freelance writer focusing on personal finance and personal stories. Her work has appeared in The Billfold, The Toast, Yearbook Office, The Write Life and Boing Boing.

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