When it comes to money, there is no one-size-fits-all approach—the way we spend, save and invest is highly personal. Everyone has a unique money personality shaped by their attitudes and emotional relationships with money.
As an advisor, knowing your clients’ money personalities, and also your own, can help guide better financial decisions, money management and insurance planning.
The important of understanding money personalities
Your client’s money personality can affect everything from how they view saving, investing, insurance and spending, to how they talk about money and prioritize it in their life. And just like spouses or partners may not enjoy the same activities or want the same toppings on their pizza, they also might have very different money personalities. It is your job, as an advisor, to recognize, understand and address each client’s specific money personality in order to help you offer your clients personalized service and recommendations.
Where does your money personality come from?
Not surprisingly, money personalities form primarily through your upbringing (both family and external influences) and are shaped by spending habits, cultural values, life experiences, education and social circles. For example:
- Families may be secretive or open about money
- Education levels may affect how people manage their money[1]
- Friends and peers may influence attitudes toward money, such as prioritizing saving or spending
Identifying different money personalities
Often, one of the best ways to uncover a person’s money personality is to see how they handle unexpected money like an inheritance or a bonus from work. Different personalities will see, and manage, the exact same source and amount of money very differently.
Some people might view unexpected money as “play money” and spend it on something extravagant or otherwise outside of their regular purchases such as a luxury vacation, or a designer handbag. Others will immediately relegate the money to savings or a conservative investment option, while others may even try to increase the windfall at the local casino!
Since receiving a large, unexpected amount of money is not a common occurrence that can be viewed in real time, you can still use this example to discover your client’s money personality by asking them what they would do with hypothetical lottery winnings, for example.
The many money personalities
According to Happiness and Money Expert Ken Honda, there are seven unique money personalities.[2] Understanding the individual personality of each client, along with the strengths and weaknesses associated with that personality, can help you provide a more personalized recommendation to meet their needs. Keep in mind that each client is likely to show characteristics of more than one money personality but one, or two, will likely be dominant.
Personality |
Strengths |
Weaknesses |
| Saver | Values security and stability, cautious | May neglect fun or current needs |
| Spender | Enjoys life experiences, is generous with their money | Struggles with budgeting, focused on the present |
| Moneymaker | Skilled at growing wealth, takes risks | May overlook personal growth and family time |
| Indifferent | Easygoing, not stressed about money | Overwhelmed by budgeting and financial management |
| Gambler | Thrill-seeker, risk-taker | Addictive tendencies, risky financial behaviors |
| Worrier | Constantly thinks about money, follows plans | Anxiety about finances, pessimistic, lacks confidence |
| Saver-Splurger | Mix of saving discipline and impulsive spending | Sometimes unpredictable financial behavior |
Applying money personalities
Understanding your client’s money personality may help you communicate more effectively with them and provide a more personalized plan. For example:
- Indifferents: Help them create a simple budget to reduce feeling overwhelmed around financial management.
- Worriers: Emphasize security and the value of following a clear, well-defined plan to provide reassurance.
- Spenders: Introduce short-term savings goals that allow them to enjoy experiences while staying financially responsible.
Remember, a money personality is neither good nor bad. It is simply a way of understanding how your client views money and its place in their life. As an advisor, you can use the characteristics of your client’s money personality to build rapport and create budgets that accommodate their habits and goals.
Money personalities affect how clients prioritize financial goals such as retirement, insurance and debt repayment. After uncovering your client’s money personality, you can use their motivation, whether security, freedom, or status, to frame insurance products in language that resonates with their personality type.
Understanding, and relating to, your client’s money personality is good way to start a meaningful conversation about their financial goals and the need for insurance protection.
To learn more about the art of influence, listen to our podcast episode, Understanding money personalities available at ivari.ca/podcast or wherever you get your podcasts.
Disclaimer
This article is intended for general information purposes only and should not be considered specific advice, nor is it a substitute for advice from a qualified professional. The article may contain information obtained from third-party sources. While reasonable efforts have been made at the time of publication to ensure that the contents of this article have been derived from reliable and accurate sources, including third party sources, ivari provides the information “as is” and ivari does not warrant the accuracy or completeness of the information contained herein.
Neither ivari nor its affiliates, officers, employees or any other person accepts any liability whatsoever for any direct, indirect or consequential loss arising from any use or reliance on the information or opinions contained herein.
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