Our relationship with money is often derived from our relationships with others.
We are first exposed to the world of finance as kids, and as such we adopt the views of our caregiver’s on the subject. For instance, if you come from a wealthy household, money could be seen as trivial, as is the case with Lavish a teen who apparently squanders thousands of dollars because his parents are loaded. Now, if you come from a modest household, you may look at money as a means to an end, as was the case with my upbringing. I lived with my grandparents who maintained a distrust of the banking system. They lived through the Depression, and their idea of money management was spending less than you make and hiding the rest under your bed.
These are both extremes, but are important points in defining our own relationship with money. Although I’ve kept some of the financial lessons of my grandparents, I had to define my own approach to money management. Times change; so do economies. The lessons of the past can be helpful, but you have to find your own path.
For some thoughts on redefining your relationship with money, I encourage you to read How to Break “Bad” Money Habits. The article offers simple advice for redeveloping the way you look at your finances.
Also, remember to join our Financial Literacy Month contest. If you answer the most questions correctly throughout the month, you could win a coaching session with ‘America’s Money Answers Man,’ Jordan Goodman. To enter, simply answer our Question of the Day at Cambridge Credit’s Financial Literacy Month Contest.
Until next time I’m Thom Fox for Cambridge Credit Counseling Corp.