Influence: How Our Behaviors are Impacted by Family and Friends

Let’s talk about how our relationships with family and friends can affect how we handle money. Understanding these influences can help you spot habits you might want to change. Let’s check out how these connections can shape our money habits.

1. Copying (or Rejecting) Family Patterns: A lot of us either mimic our parents’ spending patterns or do the opposite of how we were raised. Those who had penny-pinching parents might realize they spend in the same way. Others might realize as grown-ups that they tend to impulsively spend since they didn’t have the opportunity to as a kid. Most of us don’t realize that we’re copying or rejecting what we witnessed growing up. Recognizing this can help us decide which habits are worth keeping and which to let go of.

2. Observing Your Friends: Ever notice how you start doing things like your friends? It’s because what we see others doing becomes ‘normal’ to us, so whatever your friends do will eventually influence your decisions. But here’s the thing – your money situation may be totally different from theirs. It’s important to make money choices that fit your own goals, not just what your friends are doing.

3. Peer Pressure and Keeping Up: Sometimes, we feel pressured to spend money just to fit in with our friends. It’s easy to get caught up in trying to keep up with others, even if it means going into debt. But putting your financial well-being first is super important, even if it’s tough. Prioritizing your financial well-being over keeping up with others is hard to do, but the benefits are enormous.

4. The Impact of Financial Shaming: People can be pretty judgmental when it comes to money. Whether it’s getting criticized for spending too much or not enough, it can really mess with how we feel about ourselves. But remember, your friends don’t have to live with your money decisions, you do.

Understanding how family and friends influence your financial habits is key to making better choices. By recognizing how our upbringing, friends, peer pressure, and financial shaming affects us, we can build a healthier relationship with money. Let your financial choices reflect your goals and values, because money is personal.