psychology of money - cityofws.org
TRANSCRIPT
PSYCHOLOGY OF MONEY
WHY DO WE SPEND THE WAY WE DO
LISA TERRY
APRIL 29, 2021
ABOUT US
Housing and Urban Development (HUD) approved agency
National Foundation for Credit Counseling (NFCC) member agency
United Way of Forsyth County Member Agency
We counsel individuals through crisis
We coach clients to meet their financial goals, whatever they may be
We provide financial education to improve financial capability in our community
Our credentials that formulate quite a unique agency.
Our mission is to help individuals and
families improve financial well-being.
OVERVIEW
What is the Psychology of
Money?
Spending Behaviors
Habits
The Money Disconnect
What’s Next?
What is the Psychology of
Money
Psychology
The scientific study of the mind and
behavior
Behavioral Economics
The way in which one acts or conducts
themselves
Behavior
The study of psychology as it
relates to decision-making processes
The psychology of money is the study of our behavior
with money. Whether or not you're successful
with money isn't about knowledge, IQ or how good
you are at math.
Social
Personality
What influences our spending behaviors?
Knowledge
Decision
Behavior
How and why we spend
Conscious
• Planned
• Deliberate
• Lists
• Needs vs wants
• Goal attaining
• Awareness
• Convenience
• Scarcity / Abundance
• Money mindsets
Unconscious• Impulse
• Mood
• Feelings
• Marketing / Advertising
• The senses (smell, sight, taste, touch, sound)
• Convenience
• Decision fatigue
• Scarcity / Abundance
• Money mindsets
SPENDING BEHAVIORS AND
HABITS
WHY IS IT SO HARD TO CREATE NEW HABITS?
Replacing Bad Habits with Good Spending Habits
1. Give yourself a solid reason to spend wisely.2. Live on a budget.3. Actively practice gratitude.4. Research before you shop.5. Avoid your spending triggers.6. Find an accountability partner.7. Don’t shop while you wait.8. Develop patience.9. Look for savings before you buy.10.Make room for fun.
Creating New Habits Take Time!
Aligning Your Spending with Your Goals
Step 1
Identify your goals
• https://www.incharge.org/financial-literacy/budgeting-saving/how-to-set-financial-goals/
• https://www.nerdwallet.com/article/finance/how-to-set-financial-goals
Step 2
Review your spending
Step 3
Build your savings
#
Cards
Debit, Credit, Benefits, Wages
Online Banking
Computer, Smart Phones, Apps
Direct Deposit
Automatic, electronic, no paper
e-Pay
Touch Pay, i-Pay, SpeedPay, etc
The Money Disconnect
How is your relationship with your money?
Online Resources• https://financialpaths.org/
• https://www.mymoneycheckup.org/financialpathways
• https://www.usfinancialcapability.org/quiz.php
• https://www.yourmentalwealthadvisors.com/our-process/your-money-script/
• https://www.smartaboutmoney.org/Tools/Financial-Identity/Quiz
• https://www.smartaboutmoney.org/Portals/0/Worksheets/NEFE-smart-about-money-activity-SMART-Goals-Worksheet.pdf?ver=2016-10-12-164326-807
• https://www.moneycrashers.com/psychology-of-money-saving-spending-habits/
• https://www.moneycrashers.com/how-technology-has-changed-our-financial-lives-affected-society/
• https://www.thebalance.com/get-control-of-finances-2386026
• https://www.pewresearch.org/internet/2018/04/17/concerns-about-the-future-of-peoples-well-being/
• https://www.daveramsey.com/blog/psychology-of-money
www.financialpaths.org
www.surveymonkey.com/r/FPPFinEd
https://www.cityofws.org/2900/RUMA-
Pandemic-Assistance
https://portal.neighborlysoftware.com/winston-
salem/Participant
For more information:
For online application:
•Must have been affected by the economic impact of the
coronavirus pandemic, such as a reduction in household income
or other financial hardship due to the pandemic.
•Must have a household income that is 80 percent or less of the
area median income. See chart below.
•Recipient must be named on a lease, mortgage or utility
account.
•Must have lived in their house or apartment in Winston-Salem as
their primary residence for at least three months.
•Must be at least one month behind on their rent, mortgage, and
utilities at the time of application.
Eligibility: