A PSYCHOLOGICAL PERSPECTIVE ON MONEY MINDSET

There are different perspectives as to how individuals relate to and perceive money. So far from experience, people have different approach to how they spend money,utilize money,invest money and so on. Several perspectives to money mindset could include; the financial freedom mindset where the individual is confident enough that his or her income can conveniently cover up their monthly or yearly expenses without been dependent on anyone. The purpose driven mindset draws from the personal aspect of sustainability, individuals spend their resources on their set goals and personal values that brings about a grater purpose.

Also, there is the Growth Mindset,where individuals See their financial skills as a liability that is open to improvement through learning, adaptation, and resilience. There is also the investor mindset, in this case people use their money or rather put their monies in places where it can offer a return by investing for long-term financial growth and security. For instance in Nigeria, buying of landed properties and investing in real estate is the real deal as land tend to appreciate more,where there is an increase in the value of an asset over time. Hence, investing in underdeveloped areas can bring about profits over the years.

There is also the consumers mindset kind of people, I see these people as those they tend to satisfy their ego and live above their means. They spend the money as they see it without any budget whatsoever. Rather they Primarily channel their focuses on spending and acquiring possessions for immediate gratification. Speaking from experience, scarcity can be a mindset for money spending, the individual Focuses on limitations, the fears of not having enough ,thus ensuring to spend carefully and frugally and also individuals in this space tend to have a constant sense of financial insecurity.

In view of all that has been said , the Understanding of the psychological aspects of money mindset allows individuals to not only manage their finances more effectively but also cultivate a healthier habit and also a more positive relationship with money. Thus, from a psychological point of view a person's money mindset is deeply influenced by their beliefs, attitudes, and emotions surrounding financial matters. This could be borne out of experiences they had in childhood,failed businesses,scam ,fraud, negative beliefs,stress and so on. This is not farfetched, because as Nigerian we get to experience this a lot, the economy is so hard and difficult that these people put their emotion to work on spending money.

One thing I have come to realize in my daily life is the fact , a child experience with money can shape ones attitude towards it. No doubt, Understanding the impact of early money experiences is crucial for individuals seeking to reshape their money mindset. This is an aspect that parents can help handle the situation because when a child gets used to the negative aspects of money mindset could be difficult to curtail. But also,Recognizing and addressing any negative patterns from the past can pave the way for healthier financial attitudes and behaviors in the present and future.

Just like I mentioned above children because psychologically inclined to money by observational learning from their parents or guardians. I know a family that is not well catered for, the husband is basically jobless with nothing to do, the wife goes around with the last child, a baby strapped to her back asking people for food or money. Hence, it is not surprising when the other child follow the mothers path by asking strangers for money. They now have a psychological mindset that money is to be begged from people not to work for it. In turn , these children might either grow up to be armed robbers or thieves is that mentality is not corrected. While on the other hand habits formed during childhood, such as saving money in a piggy bank or kolo as it's called in nigeria, receiving allowances either monthly or quarterly, or being exposed to responsible spending, can carry into adulthood.

Thus, addressing issues that has to do with with money can be a difficult especially from a objective point of view,but in the case of the psychological aspects of money, individuals can develop a more positive and empowered money mindset, leading to better financial outcomes and a healthier relationship with wealth. In all , people should focus on the positive mindset rather than the negative, in terms of abundance mentality, setting achievable financial goals, mindful spending, undertaking financial education and so on.

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