Money Mindset – How Your Past Can Shape Your Financial Future

Money Mindset
If you have a negative mindset about money, it will surely work against you

A Brief Introduction to Money Mindset Definition

One of the greatest lessons I’ve learned when talking about money mindset relates to a timeless saying you’ve probably heard before, and it’s worth repeating here. It’s that the apple does not fall far from the tree. Generally speaking, your money mindset is like that apple that hasn’t fallen far from the tree. That’s an analogy that often refers to a parent-child relationship. Your money mindset is generally similar to your parents’ as they have a large impact on your thoughts and feelings about money.

Here’s how:

  • How they managed their money affected your quality of life as a child
  • How they spoke about money affected your thoughts about money
  • Your parents’ reactions to financial setbacks made an impression on you whether you know it or not

Why Your Parents’ Money Mindset Is Impacting Your Thoughts About Money

1. How your parents managed money affected your quality of life

Whether you wore hand-me-downs, or your clothes came from the finest stores, this was a direct result of your parents’ thoughts about money. The types of foods you ate and whether or not you ever vacationed as a child was due to your parents’ mindset about money and subsequent decisions about their budget.

If you lived hand-to-mouth or affluent, it was a direct result of your parents’ ability to earn and manage their income. Their thoughts about money were absorbed by their personal experiences as well. That’s why you may have had plenty of money but also had a parent who always thought the sky was falling so they never spent anything, or a parent who was always overspending and putting the family at risk with their financial decisions.

2. How they spoke about money affected your thoughts about money

If your parents believed that the path to wealth was tied to working hard or saving for a rainy day, you likely place a very high premium on grinding it out and not spending. If your parents shared their worries over the utility bills or told you things you wanted were “too expensive,” you may have gotten the message that things you’d like to have are bad or make you greedy. These sorts of messages can linger in your psyche – even if you have more than enough income today.

3.Your parents’ reactions to financial setbacks made an impression on you whether you know it or not

You may not have had a front row seat to the conversations your parents had when a financial setback happened, but you likely knew something was up. Tension in the home or blatant fear or anger often leak out when people are stressed about income. This tension or the outward expression of fear always has an impact.

As a child, you may not have been able to connect the dots, but as an adult you might have unexplained weird feelings or thoughts about money simply because you were in proximity to your parents while they were under stress.

Looking at your past can help you see if you have money mindset issues absorbed by your childhood. Left unchecked, these can be a predictor of how you will manage your wealth, financial and otherwise. The great news is, you can undo any negative mindset or beliefs that you absorbed as a kid and replace them with healthy and wealthy beliefs.

Below you would find some of the greatest books on money mindset transformation. The first one I read was Think and Grow Rich by Napoleon Hill a couple of years back. I’ve gone on to read T. Harv Eker’s Secrets of the Millionaire Mind. I believe these are must haves in your family library and be read not once but many times if needed. They will change your money mindset from sabotaging you to working for you.

What do you think?

Written by Michael Allsworth

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