What kind of relationship do you have with money? Is your money plentiful or scarce? Are you afraid to take risks with money or are you a high roller? The relationship you have with money is determined by your money personality which in turn is influenced by many complex factors.

While your age doesn’t necessarily determine your attitude towards taking risks with money, it is generally true that the younger you are, the more willing you are to take financial risks. Taking on the responsibilities of a family usually means a more cautious approach with your money, as does moving into retirement.

Beliefs about money also help determine your money personality. Think back to the things that your parents used to say about money, for example, ‘money doesn’t grow on trees’ or ‘money is the root of all evil’. These beliefs can have a profound influence on your relationship with money in either a positive or a negative way.

Most people have had at least one bad experience with money or have heard of others who have, and these memories can influence behaviour and attitudes towards money. Business failures and share market crashes are two examples.

Your values also affect your relationship with money. For some people, success may mean living life in accordance with their values, such as having a wide circle of friends, caring about the environment, or contributing to the community. Money is often of little importance in itself to such people and they don’t aspire to accumulate a lot of it.

As you can see, your money personality is complex and it is influenced by many psychological factors that you may not even be consciously aware of. Understanding these factors will help you improve your relationship with money and enjoy a richer and happier life.