September 19, 2023 | Allison Robertson

The 5 Money Personalities: Which One Are You?


The 5 Money Personalities: Which One Are You?

cash and woman split image

Understanding your money personality can be the key to better financial decisions, improved savings, and even healthier relationships. These personalities describe the tendencies and behaviors that influence how we approach finances. 

Let's dive into the five common money personalities and their traits.

1. The Saver

A person holding a jar of coinsTowfiqu barbhuiya, Pexels

Savers are the individuals who always seem to have a financial cushion. Their primary satisfaction comes from watching their savings grow, and they get a sense of security from having money stashed away.

Personality Traits:

  • Thrives on saving money and often feels a sense of accomplishment when they can put something away for a rainy day.
  • Cautious about spending and tends to avoid unnecessary purchases.
  • Often has a well-thought-out budget and sticks to it.

A Gallup poll revealed that about 28% of Americans are "active savers." This means they not only save but actively seek ways to increase their savings and cut costs.

2. The Spender

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For spenders, parting with their money in exchange for items or experiences brings joy. They might often be seen sporting the latest trends or dining at the newest places in town.

Personality Traits:

  • Finds pleasure in buying things, whether it's necessities or luxuries.
  • May struggle with impulse purchases.
  • Often has a "live for today" philosophy and might not prioritize saving for the future.

A CreditCards.com survey showed that nearly 3 in 5 Americans admit to impulsive spending. Out of these, about 54% have spent $100 or more on an impulse buy, highlighting the spender trait.

3. The Risk-Taker

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Risk-takers find excitement in the unknown elements of financial ventures. While they can reap high rewards, their approach is not for the faint-hearted.

Personality Traits:

  • Comfortable with high-risk, high-reward investments.
  • Enjoys the thrill of the financial gamble.
  • May jump into financial opportunities without fully analyzing them.

According to a report from FINRA Investor Education Foundation, around 15% of American adults display high-risk behavior in their investment decisions, a significant indicator of the risk-taker personality.

4. The Avoider

Woman wearing blue shirt is seating on the table with sad faceKarolina Grabowska , Pexels

Financial discussions make the avoider uneasy. They'd rather not confront their financial realities, often leading to missed opportunities or growing problems.

Personality Traits:

  • Feels overwhelmed or anxious about money and tends to avoid financial discussions or decisions.
  • Might delay opening bills, checking bank accounts, or dealing with debts.
  • Often lacks a clear financial plan.

The American Psychological Association has found that about 30% of Americans say they feel stressed about money constantly. This persistent worry is a hallmark of the avoider money personality.

5. The Planner

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Planners relish order and strategy in their financial lives. With a clear roadmap for their finances, they tend to be forward-thinking, analyzing various possibilities before making a move.

Personality Traits:

  • Always has a financial strategy in place.
  • Prioritizes long-term financial security over short-term gains.
  • Is proactive in researching and understanding various financial avenues.

A survey from Charles Schwab indicates that 33% of Americans have a written financial plan. This segment, although still a minority, embodies the planner personality, focused on detailed and strategic financial moves.

Which Money Personality Trait is the Best?

A woman looking over receiptsKarolina Grabowska, Pexels

It's important to note that no single money personality is inherently "the best" across the board. Each personality type has its own strengths and weaknesses, and the effectiveness of a particular money personality can vary based on individual circumstances, goals, and the broader economic environment. 

However, for the sake of providing an analysis, here's an examination:

The Planner often stands out as an advantageous money personality due to its balanced and proactive approach to finances:

Long-term Focus: Planners prioritize long-term financial security, which can lead to stable wealth accumulation over time. By focusing on the future, they're better equipped to avoid short-term financial pitfalls and to capitalize on long-term growth opportunities.

Informed Decision-Making: Their propensity to research and understand various financial avenues means they're less likely to make impulsive decisions and more likely to make choices that align with their financial goals.

Adaptability: Because they're always strategizing and thinking ahead, Planners can adjust their financial plans as circumstances change, ensuring they remain on track.

Financial Awareness: Having a clear financial strategy in place means they're generally more aware of their financial health, expenses, and investment opportunities. This awareness can lead to better financial decisions overall.

Which Money Personality Trait is the Best? Cont'd

Life-Ruining SecretsShutterstock

It's worth noting that an over-reliance on planning without room for flexibility can sometimes be restrictive. A balanced approach, potentially combining the strengths of multiple money personalities, might be ideal for many people.

For example, a person might predominantly be a Planner but adopt the frugality of the Saver when trying to achieve a particular savings goal. Or, they might take calculated risks like the Risk-Taker when a promising investment opportunity arises.

Self-Awareness Above All Else

Young man is looking at his phone and smiling ,having a happy face.Andrea Piacquadio, Pexels

Ultimately, self-awareness is key. By understanding one's own money personality and recognizing its strengths and weaknesses, an individual can tailor their financial behaviors to best align with their unique goals and circumstances.

Final Thoughts

Young woman is holding money and smiling.Mikhail Nilov ,Pexels

Understanding your money personality is crucial in identifying both your strengths and areas for improvement. By recognizing your own patterns and behaviors, you can tailor your financial approach to better suit your goals.

Remember, no single money personality is inherently good or bad. Each has its own advantages and challenges. The key is awareness and making informed choices that align with your financial aspirations.


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