Your money mindset is equivalent to the saying that an apple does not fall far from the tree, which is a common analogy for a parent-child relationship. Your money mindset is generally really similar to your parents, as they have a significant influence on your financial thoughts and feelings.
Here’s how it works:
How your parents managed their money affected your quality of life as a child; how they spoke about money involved your thoughts about money. Whether you realize it or not, your parents’ reactions to financial hardships left an impression on you.
This is why:
Your parents’ financial management influenced your quality of life: Whether you wore hand-me-downs or spent a large amount of money on designer brands, your clothing choices were influenced by your parents’ financial attitudes. If you were wealthy or poor, it was due to your parent’s ability to earn and manage their income. Their personal experiences influenced their money thoughts as well. Often that’s why there are parents who always thought the world would end and purposely never spent anything, or parents who are consistently overspending and putting their family’s finances at risk.
How they talked about money influenced your thoughts on money: If your parents believed that the path to wealth was associated with hard work or saving for a rainy day, you undoubtedly place a high value on working hard and not spending. If your parents expressed concern about utility bills or told you that things you wanted were “too expensive,” you might have gotten the message that items you want are harmful or make you materialistic. Even if you have more than enough money today, these kinds of statements can linger in your mind.
Whether you realize it or not, your parents’ reactions to financial hardships left an impression on you. You may not have been fully aware of your parents’ conversations when a financial problem occurred, but you were probably aware that something was wrong. When people are worried about their income, the tension in the home, or outright fear or anger, often leaks out. This tension, or the outward embodiment of fear, affects everyone. You may not have been able to connect the dots as a child, but as an adult, you may have had unexplained strange feelings or thoughts about money simply because you were near your parents while they were stressed.
Looking into your past can help you determine if you have money mindset issues ingrained in you as a child. If left unchecked, these can predict how you will manage your wealth, both financial and non-financial. The good news is that you can undo any negative mindset or beliefs you picked up as a child and replace them with healthy and prosperous thoughts. Stay tuned for future wealth-management articles!
