Clover Cents: Money Decisions

February 17, 2021

This video uses activities about understanding who shapes your money decisions and understanding our money choices from the Consumers Financial Protection Bureau . It will be helpful to print off the student worksheets to use in conjunction with the video. 

This is one in a series of nine instructional videos in the Clover Cents series that helps students to understand basic properties of money and how to manage it.   

Video Transcript

Hi, I'm Dave Radloff an educator from the Michigan 4-H program. Today I'll be talking about your money style and your money circle. Both of these affect how you make money decisions. Your money style describes how you make choices about money. Would you rather save money or spend it? Do you plan how to spend money? Or do you make quick decisions about what to buy? Do you feel confident about money or do you worry about it? These are all parts of your money style. If someone gave you $25, what would you do with it? Your answer can tell a lot about your money style. Money style describes how you make choices about money. Your money style is a combination of different ways you think and feel about money. So what's your money style? Are you a Saver, someone who routinely sets aside money or avoid spending money. Maybe you're a spender, someone who makes purchases right away or buys things easily. Perhaps you're a planner, someone who thinks through expenses and makes money decisions ahead of time. You might be impulsive. Someone for whom immediate desires often influence their money choices. Perhaps you're a worrier, someone who second guesses their financial decisions and regularly imagines the worst-case financial scenarios. Or are you confident? Someone who is sure of themselves when making financial decisions? These are all examples of your money style. Your money style can affect how you make money choices. Would you call yourself a saver or a spender? A saver is someone who regularly sets aside money or avoid spending it at all. A spender is someone who makes purchases right away or buys things easily. Are you confident about the way you manage your money in the future, or do you worry about it? Confident means that the person is sure of themselves. A worrier is someone who imagines the worst things that could happen. Do you plan how to spend money or do you make quick decisions about what to buy? A planner is someone who thinks through expenses and makes money decisions ahead of time. Impulsive means the person's immediate wants influence their choices. One way to help determine your money style is to answer the question, how does thinking about money make you feel? As we go through some of the typical answers to this question, think about which answer is most like you. A spender is someone who is impulsive and may say, thinking about money makes me feel excited. It's time to go shopping. Someone with the confident money style may say thinking about money makes them annoyed. They may ask, why is everyone always so worried about money? If this is your response, you were confident in the decisions you have made about how you save and spend your money. You're probably a saver or a planner if you think about money and it makes you feel focused, it's time to make a plan and save money. If thinking about money makes you anxious, always worried that there won't be enough to get the things you want, you're probably a worrier. Your ultimate money style can often be a combination of different styles. Perhaps when thinking about money, you feel secure that you have enough and are secure in how you've budgeted for your wants and needs. This is a combination of both the confident money style and the planner money style Combining the planner and the spender can make you feel empowered when thinking about money. You probably have created a plan for how you want to spend your money that you have earned. Each person is unique in how they make money decisions. What's important to you, how your parents and friends communicate about money and make financial decisions, how you grow up, your values and many other factors all influence your money personality. Most people have a mixture of different attitudes, values, and beliefs that affect how they use their money. Whether we recognize it or not, the decisions we make about saving or spending money are affected by people close to us. When it comes to money, each person may have different ideas about what's important and why. Your money circle is your family members, friends, and other people in your life who help shape your decisions about money. Everyone has a unique money circle because it's based on each person's individual relationships and feelings. The way finances are talked about in your house can also help you identify how you feel about money. Think of one or two adjectives or phrases that describe how the people you live with view money. Maybe it's all about savings. Maybe it's carefree spending. It might be stressful when the topic of money comes up or it may not be discussed at all. Think about the people in your money circle that shape how you think and feel about money. Do they use rational, well-thought-out processes with every dollar being accounted for? Or do they just throw caution to the wind and go with what feels right? Maybe they're apprehensive about making purchases. Perhaps they only buy necessities and save every penny. Write down at least three people for the following questions and determine what their money style may be. You may want to stop the video after each question to give yourself time to think. When I go shopping or buy things, I'm usually with.... Is this person a saver, a spender, Planner? Are they impulsive? Are they a worrier? Are they confident? When I make decisions about money, I usually talk with.... How does this person influence your spending habits? The people in my life who make money decisions that affect me are..... Ask yourself the same question. What money style do they have? Everyone has a unique money circle because it's based on the influence of the individual money personalities and the styles of the people in your money circle. You've learned a lot about people's money personalities and styles. While you're learning about how to handle your finances, it can be helpful to have conversations about money with people who are in your money circle. Here are some questions to think about now that you've explored money styles and circles You may want to stop the video again and discuss each one. Is the way you save or spend money the same or different from your friends and family? People with different money styles can work together even when their style seem to conflict. Different styles can be both helpful and challenging. By seeing what's the same and what's different, you can begin to understand how individual styles shape people's choices about money. The last time you spent money, How did you decide to spend your money that way? Knowing your spending habits and strategies can help you make the best choices for you. Are the money styles of the people in your money circle, similar or different from yours? How did their money styles affect you? It's our tendency to use other people as a frame of reference for our own decisions and attitudes about spending and saving money. Recognizing how others beliefs affect your own can help you to decide what your money style will be. Now that you understand money styles and how people in your money circle may shape your choices, I leave you with one final question to ponder. What could you do in the future to make sure you're making the best money decisions for you.

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