What's Your Family Budget Personality?
Every family budget is different, but you probably fall into one of these three "money personality" categories. Find out which one best describes your finances, and how you can spend smarter
Think family finance is just a matter of dollars and cents? Think again. Ask a “money psychologist” (yes, they exist) and he'll tell you your attitude toward money is tangled up with your upbringing, and like your prized antique armoire, you just might hand it down to your kids. Gulp. Identifying your money personality (be honest!) is the first step to sanding out the rough spots.
Your Money MO: Your kids may not have designer clothes on their backs, but they'll always have a roof over their heads! “You're the squirrel who knows winter is coming,” says Brad Klontz, Psy.D., author of Mind Over Money, so you hoard money like nuts…but may have trouble enjoying “spring” with your fam.
Strategy: Odds are you have solid savings and low debt. Great. But there are also risks to being overcautious, notes Linda Descano, president and CEO of Citi's Women & Co. financial community (womenandco.com). You may stash cash in “safe” accounts that don't keep up with inflation. Ease into higher-return investments, and relax the pursestrings a bit: Kids of protectors may rush to college with a jones to spend, Klontz warns.