One of the things that we as humans all have in common is the fact that WE all have a relationship with money. Some of us have a healthy relationship and view with money, while others struggle with it. Oftentimes this relationship can be a very emotional one regardless of one’s income. It should not come as a surprise that people are often led by their impulses and emotions. Sometimes people need help sorting through reoccurring patterns that interfere with their ability to make sound financial decisions. There are times when people need help with simply coping with the stress that comes with managing their finances.
In a recent online survey conducted by the American Psychological Association, they found that 75% of 2,500 persons interviewed stated that money was the number one source of stress in their lives. Several studies have revealed that those with money do not always have a healthy relationship with money. In fact, having money never guarantees happiness, but instead can sometimes lead to more stress and anxiety in people.
There have been a host of problem financial behaviors that have been identified over the years by psychologists. A few of these problems are:
- Underspending (also known as depression mentality)
- Serial Borrowing
- Financial Infidelity (“cheating” on a spouse by spending money and lying about it)
- Financial Incest (lording money over relatives to control them)
- Financial Enabling (throwing large sums at friends or relatives who are not motivated to support themselves)
- Guilt and/or Shame around poverty or wealth
Needless to say, most humans have an emotional relationship with money. The emerging field of financial therapy can be beneficial to persons who are open to understanding and changing their money patterns and beliefs. Oftentimes this relationship with money is deeply rooted and is the result of beliefs and patterns that have been inherited. Financial therapy has been shown to be an effective practice in helping persons gain a more positive and rational relationship with money.