What’s your money type?

No shame in the money game

In her role as the Money Mentalist, accountant turned psychologist Lynda Moore helps people from all walks of life tackle financial challenges. With each money situation as individual as the person holding the purse strings, she teaches a wide range of skills to guide clients back on track, but the five money personalities can be a non-threatening first step.

Developed by American clinical psychologist Olivia Mellan, the test uses a range of questions to determine whether someone is an amasser, an avoider, a hoarder, a money monk or a spender, with most people showing a split across their two most dominant types.

“It’s been around since the 1980s, but it’s still very relevant and I believe it’s one of the best,” says Lynda. “Mellan was a couples counsellor who specialised in money conflict resolution.”

While sussing out where we sit on the money personality scale is an interesting starting point, the complex issue of money mindset spans way beyond neat categories.

“We start to absorb money influences as young as toddlers, and our financial beliefs tend to be deeply embedded,” Lynda explains. “Facing up to financial problems can be an emotional journey. When I’m working with people, there is often an ‘a ha’ moment, a sense of relief and quite often tears.

“The stigma around money is sadly so common. But it’s not about shame, it’s all about helping people understand how they think, feel and behave around money. Once people have that understanding, they are empowered to make better choices.”

The right balance

In Lynda’s Auckland-based practice, the term ‘budget’ is out due to its restrictive connotations. Instead, she works with clients towards a personalised money plan.

“It’s about identifying what’s most important,” she says. “A budget doesn’t drill down into the ‘why’ behind spending, but a money plan can be built into your everyday life, like a form of self-care.”

When it comes to the daily habits that influence our bank balance, Katrina Shanks from Financial Advice New Zealand agrees that delving into our individual money values is key.

“Many people we see have a lot of financial wastage – they’re spending their money on nothing in particular, and this is preventing them from reaching their goals. For most people, the first step is to really look at their financial situation, understand where they are at and what their goals are. You can still have hobbies, you can still spend on things you enjoy, but it’s just about finding balance.”

Katrina’s a big advocate for accessing expert financial advice as young as possible, as nailing healthy money habits from the first pay packet onwards can make a huge difference down the track. However, she says the second best time to take charge of personal finances is today.

“There’s no better time than right now, and it’s never too late. We’re all so busy, but we need to take the time to prioritise how we manage our money. It’s vitally important as it’s the number one thing that’s going to allow us more choices in the future.”

Guiding tamariki to financial success

With New Zealand-based financial literacy programme Banqer on their side, many Kiwi kids are now gaining all-important money skills from a young age.

Co-developed by tech entrepreneur and 2019 Young New Zealander of the Year Kendall Flutey, the programme has so far reached more than 300,000 students worldwide.

With digital simulations, games, badges and rewards to collect, the programme teaches primary and secondary school students about everything from investing in shares and selecting health insurance to paying tax and planning for retirement. And it’s playing a role not only in boosting financial literacy but reducing social inequality, says Banqer’s Alex Sorensen.

“To tackle this, financial literacy needs to be accessible to everyone. It needs to be taught at primary school and continue on to secondary so students enter adulthood with the essential knowledge and abilities to navigate their financial futures.”

While teaching tax to teenagers sounds like mission impossible, anecdotal evidence from schools throughout Aotearoa says the programme is hitting the mark.

“Teachers have reported seeing classroom engagement go up. Students are talking to whānau about money and opening their first bank account or KiwiSaver account,” says Alex.

“We know transforming an entire generation’s financial future is a massive job – and it’s a job for all of us – but we believe that, over time, we can create transformational impact and improve the overall wellbeing of all New Zealanders.”

Olivia Mellan’s five money personalities: