Some of the Causes for Your Lack Financial Knowledge
Some of the Causes of a Lack of Financial Knowledge May Surprise You…
In my previous article I asked if you found money issues dominating your daily thoughts, your time and energy. Meaning… the whole issue of dealing with your money often felt overwhelming, frustrating, confusing, stressful, shameful, or even terrifying. Gaining some financial knowledge is your solution.
You can revisit that article here: The Problem
In this article “The Cause” I’ll explore some of the reasons for these money issues in your life. In my next article I’ll share some solutions based on finding a learning method that’s right for you.
Now it’s time to deal with the program running in the background. What’s causing all that stress, confusion, or fear (unconsciously) when dealing with money?
Let’s take a look at what I believe to be some of the core causes of money issues today.
1. Why Would You Know Anything About Money?
If you never LEARNED HOW to manage your money, (create a budget, live within your means, make financial spending decisions, have savings, handle debt, know how much you actually need or spend, any or all of the above) from your parents, relatives, classes, books, or from somewhere at some point, then WHY would you know how to manage your money NOW? Financial knowledge doesn’t just pop in your brain at a certain age. Managing your money is not often second nature, especially if you are a creative type.
This is often one of my first discussions during my workshops or client sessions, when people sheepishly admit they’ve never really acquired the financial knowledge on how to manage their money very well or not at all. And yet they feel that they “Should” because they’re smart people.
I hear so many adults (young as well as older) tell me how totally embarrassed they are to admit they just assumed that somehow when they became a real adult, POOF, they would suddenly know “Money Skills 101” and instantly gain the financial knowledge to know what to do with their money.
Then, after years of living life (marriage, family, maybe even great jobs or family money) and maybe someone else handling most of the money issues, people start turning 40 or 50 and are totally mortified because they still haven’t figured out the money thing.
2. So what DID you learn about money from those childhood days?
What lessons or messages did you pick up about money from your past (when you were a child with the mind of a child)? How many of these unexamined messages do you still carry forward in your day to day adult life? And then the classic Dr. Phil question “How’s that working for you?”
Think about the money messages you heard, witnessed or felt in your childhood. Did adults argue about money, consider the topic of money dirty, shop when angry or worried, or often shut down emotionally? In some households, money was a secret, something never even discussed.
Or maybe you came from a background where money was definitely the topic, but what you were learning, or more likely observing, was not very helpful, nor healthy or not making any sense to your young mind.
On the other hand, many people grow up in a peaceful home with no awareness about money, other than it was always there. That’s a relief, but you realize you still never gained the financial knowledge and learned much about how money works.
And if you were fortunate, perhaps you had parents who took the time to talk about money in front of you and with you. Discussed purchasing decisions, charities, priorities and values. Encouraged you to start saving your money and paying attention to how you spent your gift money and allowance money.
Now notice if any of these patterns are showing up with your partner or in yourself.
Our childhood impressions have a huge impact on how we deal with money now as adults and with our partners. In the end, the reactions to handling money still come down to background experiences, and often are a result of the financial knowledge you gained in your youth.
AND don’t forget the role modeling you are currently providing for your children. Is this the financial modeling you want to pass on?
3. The Call of the 21st Century – “I want it now!” aka: the Call of the Sirens.
Okay, this is the challenging one.
Is it possible that another reason managing money is getting so challenging is the electronic world we now live in?
Think about it. You are up against a torrent of external, ongoing, daily tempting, addictive messages (social media, apps, video games, ads, commercials, movies, TV shows) that did not exist even a few years ago. All of them tempting you with limitless, juicy choices.
Unconsciously it can feel like the mythical sirens calling out to you. If you spend your money on “this”, see how exciting, adventurous, satisfying, meaningful or beautiful your life could be! Who wouldn’t want to buy into that life? And at what cost…financially, emotionally?
It takes a tremendous amount of conscious energy to resist the ongoing temptations and to be saying “No” to yourself, your partner and your children all the time. Not to mention the little dopamine hit you get every time you buy something or satisfy an immediate want. And it’s all so easy now to do. And pretty soon you want more of that little dopamine hit.
It’s a lot easier to think “Well, why not, after all, credit is easy”. You’re convinced you’ll be able to pay off the debt, or at least keep on top of it… somehow. Your income has been steady. And besides, your friends and neighbors all seem to be enjoying their life. What about you?
And by golly, you’ve been working really hard or you’re really exhausted and deserve to have these things too or deserve to feel better. So what if less money is going to savings or retirement right now? There’s always tomorrow.
And pretty soon, you’re sliding down a very slippery emotional and financial slope.
Is any of this sounding familiar to you?
Perhaps you feel yourself relating very strongly with one or all of the causes listed above. Could any of these causes explain some of the financial challenges in your life right now?
If you’re facing a lack of financial knowledge, and dealing with some of the causes outlined above, I want you to know there is powerful hope. There ARE solutions. You really CAN change your financial situation and your life. You can start moving to the thriving side of life.
I’ve witnessed this financial transformation for decades, and what a gift to be part of that.
Are you ready to make this year the year of change… ready to take advantage of my powerful personal coaching support to guide you through the challenges in this new journey?
Go to Article Three: The Solution
The key is knowing the learning style best for you.
“I’m really excited to finally start gathering this information, and have you review it with me. It feels so daunting, but now I have support. If I get stuck I know I can review this with you and get unstuck. I really like the idea of this coaching.” L.K. IL
I look forward to working with you and supporting you as you create your new life!
Wishing you much financial peace of mind.
Judy Lawrence, M.S. Ed.