Warning: Late repayment can cause you serious money problems. For help, go to www.moneyadviceservice.org.uk

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What Type of Spender Are You?

Are you a sensible saver or a big spender? Find out how your attitude to your finances shapes the way to spend your money. 

A couple of months ago we wrote an article where we explained the importance of understanding the way you and your family view money and the role that it plays in your household. 

A recent study between University College London, the Open University and BBC Lab UK showed that the way people saw money greatly affected their spending habits. For example, when people see money as security, it can reduce the risk of financial problems. On the other hand, if people see money as a means of power or status, it can increase the risk of financial problems. 

The study also concluded that there are four distinct ways that people look at money. Some people constantly worry about how much money they spend, other people buy things to make themselves feel better, while others are in denial about their spending habits. 

4 Ways To See Money

Status Spenders see money as a status symbol, a tool to influence or impress others.  

Secure Savers see money as a source of security. Secure savers are more comfortable saving money even if they´re not saving for anything in particular.  

Independence Lovers are hedonistic, living only for the present day without any thought for financial security.  

Generous Indulgers like spending money on others as a way to show affection and appreciation.  

Shopping Behaviours

Now that we´ve explored the four ways people view money, let´s look at the different behaviour types when it comes to shopping: 

Fanatical Shoppers shop frequently. Often, these types of shoppers “accidentally” purchase a lot more than they originally intended. For example, they might enter a store to buy a pair of shoes but end up buying several additional items.  

Frugal Shoppers will do everything to save money. To save money, these types of shoppers could spend hours comparing prices in-store or online to ensure they get the best price. Additionally, they might drive across town to save a few cents on an item despite that it took a lot longer.  

Escapist Shoppers believe in “retail therapy” by creating a distraction from their job or personal life through spending money. 

Reluctant shoppers are apprehensive about spending money and will put off purchasing until the very last minute. For example, this type of person may delay purchasing an airline ticket until the last minute, or if they are in need of new shoes, they will wait until their current pair is completely worn out before buying a new pair.  

Self-Esteem shoppers shop as a way to boost their self-confidence often buying expensive clothes or items in attempt to make themselves feel better. 

So, what about you? Whatever type you are, it´s good to be aware of your spending behaviours and the way you view money. 

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Representative example: APR 1270% if borrowing £400 for 4 months. Interest rate: 292% p.a. (fixed). Total amount repayable: £665.48 by four instalments of £166.37. Maximum representative APR: 1604% if full loan repaid after 7 days.