The relationship we have with our finances can be complicated – we bury our heads in the sand, we spend too much, we spend too little. But understanding what’s behind this can help us build better habits (and savings) for the future, says financial journalist Claer Barrett
If there’s one thing I’ve learned during my 20 years as a financial journalist, it’s this: never underestimate how much our emotions govern our relationships with money. With budgets squeezed by the cost-of-living crisis, it’s tempting to think that having more money would be the answer to all our problems. However, this won’t address the money hang-ups and bad habits we’ve accumulated over the years – something that accounts for why around 70% of lottery winners end up going broke.
So let me tell you one of the biggest money secrets of all: deep down, pretty much everyone I have ever met thinks they could be doing a much better job of looking after their money – me included!
Women especially, often have far too much other stuff going on in their lives to make financial planning a priority. Money is complicated, and most of us – including those who work in the financial industry – have dozens of money questions we secretly want to ask but don’t want to look stupid by admitting we don’t know the answers. Add to this the almost complete absence of financial education in schools, universities and the workplace, and is it any wonder that we end up tying ourselves up in financial knots?
This is why I decided to put pen to paper and write my first book, What They Don’t Teach You About Money, which looks at the most common money issues we all have and how to sort them. And trust me, it’s never too late to learn! Here are some ideas for exploring your own emotional relationship with money, overcoming those blockages and building better financial habits when you do.
START WITH A QUESTION
What’s your earliest money memory? This is a question I ask every guest on my Money Clinic podcast, and it’s often surprising what gets dredged up. For example, you might remember feeling proud of saving up your pocket money as a child, so as an adult, setting money aside for a rainy day comes naturally to you. Alternatively, your most vivid memor
