Main Points to Remember
- The things we learn about money as children can turn into habits that may make it harder to reach our goals as adults.
- There are clear steps we can take to create a better mindset when it comes to money.
- Mental health and money are strongly connected. When one suffers, the other often does too.
Most people think money choices are simple and based only on facts. We look at the numbers, follow our budget, and choose what makes the most sense financially.
But the truth is that our money choices often come from how we feel, not just what we know. Studies show that emotions play a bigger role than logic when it comes to spending and saving. Many of these feelings come from the beliefs we formed during childhood. These early lessons can sometimes lead to decisions that don’t support our goals. The way we see spending, saving, wealth, and debt might even hold us back from the progress we want to make.
Letting go of wrong ideas about money is important. It helps us build a healthier mindset and makes sure we don’t pass these ideas on to others, especially the next generation.
What We Learn When We’re Young
Experts say that kids start forming their views about money as early as 5 years old. These ideas are shaped by what they see in their family—the habits, values, behaviors, and culture around them. Over time, these beliefs become strong and hard to change.
Here are a few examples:
- A child who watches their family struggle to afford basic needs might grow up always afraid of being poor. Even as an adult with a steady income, they may feel nervous about spending money on big things like a home or car, even when they can afford it and it would improve their life.
- A child whose family had a lot of debt might grow up believing all debt is bad. They could find it hard to accept that credit, when used carefully, can be a useful tool.
- A child raised in a home where spending was never questioned might think money will always be there. As adults, they may spend more than they earn, pile up credit card debt, or buy things on impulse.
How to Make a Change
The good news is that these beliefs and habits can be changed. Both mental health professionals and money experts suggest the following steps:
Pay Attention to How Money Makes You Feel
Take time to write down your thoughts and emotions when you get paid, shop, pay off bills, or plan for a big expense like a vacation or a home. Try to connect these feelings to things you experienced as a child.
Practice Being Mindful
Thinking about money may bring up negative feelings about past mistakes. Try to be kind to yourself. Instead of judging those feelings, accept them for what they are. This can help you look at your choices more clearly and take different steps in the future.
Keep Track of Your Spending
There are many apps for budgeting, banking, and credit cards that sort your spending into categories. These tools give you a clear picture of where your money goes. You can then use that information to set goals, see the difference between needs and wants, and make changes where needed.
Picture What Success Looks Like
A helpful exercise is to write a letter to your future self, celebrating the fact that you reached a goal. In the letter, explain what you did to reach it, describe how success feels, and consider what would have happened if you hadn’t met the goal.
Don’t Be Afraid to Ask for Help
Many people deal with money problems, and there are plenty of ways to get support. You can find helpful tools online, read books, attend workshops, or talk to financial planners or therapists who understand money issues. Trusted friends who manage their money well can also be great people to talk to for advice and support.
Money and Mental Health Are Connected
Money has a big impact on mental health. A recent study found that more than 60% of workers feel stress about their money situation. In some cases, this kind of stress can even lead to mental health challenges.
Sometimes people deal with anxiety or sadness by shopping. Buying something can release a feel-good chemical in the brain called dopamine. But that feeling doesn’t last, and guilt or regret often follows. The brain then wants more of the good feeling, and this can create a cycle of spending to feel better.
Understanding that your views about money from childhood might not be helping you now is a major step toward better financial health. The way you grew up does not have to decide how you live today. You have the power to change your habits and your future.
