Financial Strategy
December 17, 2021

What are Money Personalities and Why Do You Need to Know Yours?


Managing our money and setting ourselves up for the future has never been more important. But for those of us who can barely stick to a skincare routine let alone budget, it can feel like we're doing something wrong. Well, we're here to tell you that you're certainly not alone, and that the answer to your saving woes may come down to tailoring your approach to suit your 'money personality'.

Now, we all have a different relationship with money and sit at varying levels of being financially savvy, there are five distinct types of money personalities and these can say a lot about how much you're optimizing your savings.

It is worth understanding your money habits and getting ahead of any of any problematic tendencies that may come back to bite you in the future.

Getting to know your money personality means looking at the role money plays in your life and using those insights to inform the ways of saving that might best suit you and your lifestyle and  how you should go about saving, as well as understanding the psychology behind it all!

The major personalities are big spenders, savers, shoppers, debtors, and investors.

Big Spenders

The Big Spender

Big spenders love nice cars, new gadgets, and brand-name clothing. People with a "spending" personality type aren't typically bargain shoppers; they are fashionable and always looking to make a statement. This often means a desire to have the latest and greatest mobile phone, the biggest 4K television, and a beautiful home.


The Saver

Savers are the exact opposite of big spenders. They turn off the lights when leaving the room, close the refrigerator door quickly to keep in the cold, shop only when necessary, and rarely make purchases with credit cards. They generally have no debts and may be viewed as cheapskates.

Savers are conservative by nature and don't take big risks with their investments.


The Shopper

Shoppers often develop great emotional satisfaction from spending money. They can't resist spending, even if it's to buy items they don't need. They are usually aware of their addiction and are even concerned about the debt that it creates. They look for bargains and are happy when they find them.

Shoppers are varied in terms of investing. Some invest regularly through 401(k) plans and may even invest a portion of any sudden windfalls, while others see investing as something they will get to eventually.


The Debtor

Debtors aren't trying to make a statement with their expenditures, and they don't shop to entertain or cheer themselves up. They simply don't spend much time thinking about their money and therefore don't keep tabs on what they spend and where they spend it.

Debtors generally spend more than they earn and are deeply in debt while not putting much thought into investing. Similarly, they often miss taking advantage of the company match in their 401(k) plans.


The Investor

Investors are consciously aware of money. They understand their financial situations and try to put their money to work.

Regardless of their current financial standing, investors tend to seek a day when passive investments will provide sufficient income to cover all of their bills. Their actions are driven by careful decision-making, and their investments reflect the need to take a certain amount of risk in pursuit of their goals.

Now that you know what each of the money personalities entail, you can tailor your financial plan that allows you to indulge in your guilty pleasures while making sound financial decisions. Not sure how to get started?

We can help! Reach out to our team at +254 103 172237 and we can help you kickstart your financial journey on Koa.