Financial Attitude and Financial Literacy

ImproveFinancialLiteracy

April is Financial Literacy Month! There are many aspects of being financially literate, and a significant part of that is your attitude.

Just like all other aspects of your life, your attitude towards your financial situation has a large impact on your finances. Your “financial attitude” goes hand in hand with your “money attitude,” as some refer to it.

What is a Money Attitude?

Your money attitude is specifically how you “feel” about money. There tend to be four major categories of money attitudes but it is possible to fall under more than one;

Adoring: It is pretty straightforward. If you adore money, you love to spend it. People who have this attitude tend to be impulse shoppers. He or she often relies on credit and shops because they can. They also tend to get themselves into debt because of this; they don’t recognize the fact that swiping your card adds up and they will have to pay it at some point.

Entitled: Those who have an entitled money attitude are the ones who love to show-off.  They have the best of everything, regardless of whether or not they can actually afford it. Behind closed doors, it is entirely possible they struggle financially and bare a large financial burden.

Avoidance: An attitude of avoidance isn’t about avoiding problems; it’s about avoiding the concept of money. This type of person gets stressed/ anxious about money very easily. They count every penny purely out of fear of not having enough. It is a hard attitude to change, but can still have a negative impact on your financial situation.

Cautious: Cautious people are those who are very frugal or “scrooges.” They refuse to spend their money on anything that isn’t deemed necessary. This can cause them to miss out on opportunities and any sort of enjoyment. They also tend to squeeze everything they can from their budget, but not in a good way.

What is A Financial Attitude?

Your financial attitude is how you react towards things such as money, financial obligations, etc. Your money attitude tends to influence your financial attitude, which also is split into four categories. Think of your finances as a pool, the deeper you go, the scarier it can get. The four categories can be represented by pool depths.

Hesitant to Start: These people have just dipped their toe in the water. They have started on their financial journey, but they do not have a foundation yet. They may be intimidated by doing things such as making a budget.

Taking the First Steps: These people have waded into the shallow end of the pool. They are involved in financial basics but still have not achieved financial literacy. If you fall into this category, take another look at your finances. Go over it with a fine tooth comb and see where you might have some mistakes and are possibly losing money. If you are dealing with debt at this stage and aren’t really getting anywhere, contact TLG today! We can give you a free consultation as to your situation and how we can potentially help alleviate some of your debt.

Making Progress: You are up to your waist in water but aren’t quite swimming yet. These people care about their finances. They track their expenses, manage to pay their bills, etc. People in this stage should focus on maximizing their money- whether it is paying down debts quicker or putting more money into savings/ retirement.

Solid Foundation: Welcome to the deep end! You can swim on your own, but that doesn’t mean you should stop your journey just yet. It is essential to keep learning about financial literacy and your finances! This will ensure you are consistently progressing towards your goals and be equipped to make informed money decisions. The key to having a solid foundation is to be prepared for unexpected financial disasters.

How Do I Change My Attitude?

Changing your money attitude first requires a desire to do so. You cannot be helped if you do not first help yourself! Here are a few tips to help improve your attitude and financial literacy:

  • Read financial literacy books such as Life and Debt by Leslie H. Tayne, Esq. Reading about financial literacy can enhance your understanding and help you realize you are not alone.
  • Take a financial literacy class- there are many education centers or community colleges which may offer these kinds of classes. They will help you learn how to manage your money and narrow in on where you struggle financially
  • Use the tools you are given. Things such as automatic payments, financial software, money management apps, etc. are all designed to improve your finances and reduce the stress placed on you.
  • Visit an expert! Sometimes big problems require bigger steps. If your debt is keeping you down it may be time to look into other debt repayment options or visit a debt consolidation expert. There are also financial advisors who can help you plan for the future. Advisors look at how you handle credit, what assets you have, etc. and determine how this will affect your future.
  • Acknowledge your problems! Everyone struggles with money at some point. Everyone has debt. It is important to face your debt head-on instead of denying it or letting it control you. Owning up to your financial situation goes a long way in changing your attitude towards your finances.

No debt is too big or small, what matters is how it affects you. If a debt is controlling your life, Tayne Law Group can help! Call us today for a free consultation about your financial situation. We aim to help all of our clients on their path to a debt-free life! You can also visit our blog for more helpful articles on a variety of financial topics.

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