In an era where financial literacy has become an essential skill discussed across all ages, another often overlooked aspect is one's "financial personality."
In reality, even with equal financial knowledge, people make vastly different money decisions shaped by beliefs, life experiences, and emotions formed by family, environment, and economic conditions over time.
CNBC compiled financial personality types from the book Happy Money by Ken Honda, who studied the psychology of money and happiness for nearly ten years, categorizing various financial personalities.
Thairath Money summarized four financial personalities that anyone can identify through three basic questions about daily spending habits.
Food / Housing / Travel
Stocks / Mutual funds / Insurance
Shopping / Credit cards / 0% installments
Buying life experiences
Think carefully about whether it’s truly necessary.
Prefer to invest the money instead.
Wait for promotions or coupons.
If you like it, just go for it; why save?
Savings bonds.
Growth stocks.
Lottery with popular numbers.
Better to spend money on something else.
Signs you might be a Compulsive Saver:
You save endlessly, sometimes without a clear goal.
You believe saving money is the only way to feel secure in life.
You are frugal and often advise friends on the best times to buy plane tickets or the most cost-effective phone plans.
A weakness is that some fear losing money so much they live without spending what they’ve worked hard to earn.
Financial advice for compulsive savers is to find "balance"—learn to balance saving with living life.
Signs you might be a Compulsive Moneymaker:
You believe earning more money is the key to success.
You devote most of your energy to making as much money as possible.
You find happiness in recognition and praise from others about your financial achievements.
A weakness is that while on a strong path to financial freedom, you may neglect other important life priorities.
Financial advice is to realize life is more than money; the goal is to build wealth alongside other life dimensions.
Signs you might be a Compulsive Spender:
You often spend on things you don’t truly need.
You are sociable and enjoy giving gifts, sometimes without special reasons.
When distressed, your solution is spending money for immediate satisfaction.
A weakness is that despite substantial debt, compulsive spenders keep shopping, sometimes hiding large purchases from friends and family, risking bankruptcy if spending consistently exceeds income.
Financial advice: Creating a budget plan will help you gain a different perspective on your finances.
Signs you might be Indifferent to Money:
You rarely think about money at all.
At worst, you may believe money is inherently bad.
You feel money shouldn’t influence major life decisions.
A weakness is feeling content with very little money, leading to indifference toward finances but potentially a lack of financial responsibility.
Financial advice: Focus on knowing where your money goes, your monthly expenses, and debt status. Doing so helps manage money naturally, even if you don’t care much about money.
Ken Honda points out most people are a mix of these personalities. Understanding yourself and your personal "pitfalls" helps manage money better, reduce emotionally driven spending, and build long-term financial stability.
Source:CNBC
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