How Money Memories Affect Your Personal Finances

Our first step in the “understanding” category is one designed to help us understand ourselves. Many of our financial behaviors are greatly influenced by our experiences with money over the years, but especially during early childhood.

For example, one of my sisters was always embarassed when she shopped with my grandfather because of his “dickering” over prices as they called it then. Nevertheless, she grew up to be a great negotiator over prices, especially at yard sales and the like.

Ask yourself questions. What is your first memory about money? Did you have to earn your spending money as a child or was it given to you.

Were you often told that you couldn’t do things because your parents didn’t have enough money? Did you grow up thinking you were poorer than your friends? Or did you grow up thinking you were lucky to have more than a lot of people?

Did your family ever experience a financial crisis? Did you grow up thinking you were at the mercy of others to give you a job or did you grow up feeling self-reliant?

Now ask yourself how you interpreted these experiences as a child and how you see them now. As you see how your past experiences have taught you to think and behave in certain ways, make a list. Reflect a bit on how they are affecting your financial well being now.

Now try thinking about it from a different angle. Write down any other habits you have developed in using your money and think in reverse. Why do you think you behave in these ways? Don’t judge good or bad. Just try to understand your financial thinking and behavior.

As you go along in your financial education you will want to reflect on these habits, especially if some of them may be holding you back.

Once you understand yourself and the way you think about money, you will be able to explore possibilities for change where it is needed and reinforce those traits that are positive and helpful.