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Is It True That Your Personality Affects Your Spending Behavior?


by Stacy Miller

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Your personality has a significant impact on your spending behavior. You may not have ever considered this, but it is true. Various studies have shown that people with different personality types spend dollars differently. Let’s talk about each personality type in detail, and find out how it affects finances in various ways.

Personality Type #1: Money Hoarders

Financial Personality Type #1 - Money Hoarders - Piggy Bank


One of the dominant traits of this personality is insecurity. Money hoarders want to build a fat financial cushion so that they can always feel safe and secure. Childhood poverty, significant financial losses, and internalization of unuttered words of parents can create this personality type that affects spending behavior significantly. Insecure personalities can become money hoarders in their pursuit of creating a world where they can feel safe and secure.

My mom is a money hoarder. Mom was the fourth child of her parents. My grandfather was an English teacher at a small private school. He earned a lot of respect from his fellow teachers and students but failed to make enough money to run his family comfortably.

Mom had a difficult childhood. My grandparents loved her unconditionally but failed to fulfill my mom’s wishes. She couldn’t study in a top-notch school or wear branded clothes. She couldn’t go for a vacation with friends. In fact, the condition was so bad that she ate leftovers at dinner several days. These things made a tremendous psychological impact on her.

After her marriage, she could afford to live comfortably. Dad had a decent monthly income, and he never stopped mom from buying anything nice for herself. But somehow, my mom couldn’t splurge on herself. If dad bought a cute dress or a watch for her, she always felt that it was a waste of money. She wanted to save as much as possible. She is still like that. Whenever I buy something for her, she always says, “Why did you buy such an expensive thing for me? Why did you waste your hard-earned dollars? Save the money in your bank account.”

Personality Type #2: Money Avoiders

Personality Type #2 - Money Avoiders - Ostrich Buring Head in Sand

The primary trait of money avoiders is denial or financial rejection. Money avoiders are indecisive people. They avoid facing financial realities just to avoid making the wrong money decisions. But in the end, they end up making wrong financial decisions or no decisions at all.

Making no financial decision is a bad decision. Money avoiders often don’t look at their checkbook just to avoid an economic reality and make a bad financial situation worse. The truth cannot be avoided. If they try to overlook it, they can be in bigger trouble. In fact, they may end up paying an overdraft fee to the bank ultimately.

Ignoring a credit card bill is also equally dangerous. Money hoarders will only escalate their financial problems by not paying credit card bills. Their outstanding balance will increase, the credit utilization ratio will go up, and the credit score will drop.

Personality Type #3: Planners

Personality Type #3 - Planners - Financial Graph on PC

This personality type is more into a long-term investment. Planners know what they want in life and how to achieve it. You can give a list of probabilities and goals to planners, but they wish to know precisely what they will have every day. They can make a plan and achieve their goals with utmost certainty.

Planners love to think ahead of others. They want to see themselves as smarter than their contemporaries and make almost 12% of the entire population.

The problem with planners is that they are too much focused on the big picture and often forget to see the little details. They live in the future and miss out on opportunities here-and-now. For instance, they can save diligently for leading a comfortable retirement life, but they can quickly forget enjoying the present days.

Personality Type #4: Pleasers

Financial Personality Type #4 - Pleasers - Volunteers taking a selfie

Pleasers take finances personally. They love to spend money to please themselves and others. They are distinctly different from planners and comprise 12% of the population.

Planners would do everything to ensure they have food on the table and a safe environment. The pleasers are more concerned about the emotional needs of themselves and others. They can spend a fortune on their loved ones and get into credit card debt. They won’t mind.

A pleaser can be financially abused easily. People can easily take advantage of a pleaser’s desire to focus on others’ needs above his own. A pleaser can also ruin his financial fortune by overspending. A pleaser should always avoid toxic friends, think practically, and consolidate debts for having a secured financial life.

Personality Type #5: Players

Financial Personality Type #5: Players - Photo of two entreprenuers

They have an impulsive nature. They live in the moment and react accordingly. They are less likely to think long-term and are always at the highest financial risk. They are carefree and comprise 38% of the population.

Players are the risk takers. Their carefree attitude and resourcefulness help them to become a great entrepreneur.

So what type of personality do you possess? Are you a planner or a pleaser? Do you love to take risks or avoid financial realities completely? What steps have you taken to combat the negative traits of your personality? Share with us.

Author Bio: Stacy B Miller is the content writer and editor at Oak View Law Group whose articles have featured in various blogs and websites. She works to eliminate the stigma of debt and show readers the best options for handling their own debt.

About the Author 

Stacy Miller

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