Personal Finance

The Emotional Side of Money: How It Shapes Our Spending, Saving and Financial Future

Emotional spending can wreak havoc on our personal finances. But there’s a way to eliminate the money mess.

Made with Canva

We all know that money is a highly charged emotional topic.

But did you know that your emotions play a major role in your spending and saving habits? It’s true.

Psychology tells us that many people act out of emotion rather than logic. And it’s these pesky emotions that can also seep into our financial lives, causing us money problems, headaches, and regrets.

Some people spend money when they’re happy. Others spend money to make themselves feel better. Some people save money compulsively. While others find it hard to save a single dime.

But the good thing is we can remove emotion from money by understanding how our feelings influence our financial decisions.

So, let’s look at the emotional side of money and how it exactly affects our spending and saving habits.

Childhood Often Dictates Our Feelings Toward Money