In today’s busy world, money has a crucial role to play in our life, from a medium of exchange to the well-being of a person. The response towards money can indicate a person’s money personality. In the financial planning process, it is vital to know the money personality of an individual.

Measuring the money personality or attitude towards money can indicate the comfort level of a person with various investment options. It is a psychological tool to identify risk profile to understand the money attitude. The discipline that has been developed is known as psychometrics. Risk profiling systems have gained an international recognition as the world’s best practice to establish the risk profile of an individual. It provides an individual’s risk tolerance and one such example is Finametrica—an Australian solution.

There are four money personalities: spenders, savers, shoppers and flyers, and investors. Your money personality is dependent on many factors. While it may not be easy to change attitudes, the way you react to money matters can help understand your approach towards spending, saving, and investing. In the financial planning process, it is vital to know the money personality of a person.

The money spenders

Money spenders always spend more money than they should. They actually don’t care how much they spend or on who they spend. These types of people always prefer the present situation and are willing to spend money to make life more enjoyable. They usually spend first and think later. For this category, saving money is a difficult task, as they always think to buy and services for immediate pleasure. So it can be a challenge to accumulate enough to meet the long-term financial goals.

If you fall in this category, you need to consult your financial adviser and explore long-term goals.

The money savers

Money savers are the exact opposite of money spenders because they always believe in price comparison. They find a good deal while shopping and rarely make purchases with credit cards. This type generally has no debts and they are not concerned about following the latest trend in the market. They are more conservative as far as investment is concerned. If you fall in this category, you have to consult your financial adviser to grow your money. Develop an attitude to put your money to work for you.

The shoppers and flyers

The shoppers derive satisfaction from spending money in the shopping mall. They always seek new things or services to get comfort and pleasure in life. They look for bargain and search for a good deal every time. They are least bothered about investing money or making financial plans for their life. Sometimes, they invest a lump sum and may even invest a portion of a windfall such as bonuses from company or inheritance money. Sometimes, the shoppers and flyers become money avoiders.

If you fall in this category, try to learn the philosophy from the financial adviser strategies for successful saving plans.

The investor

This category is well-aware about the money. They believe in budgeting, saving and investing. They are keen to learn money concepts. They are aware about their current financial situations. Often they explore various options for investment and make informed decisions on financial matters. Financially speaking, they are doing well and are keen to continue learning.

Varun Jani is the personal assistant to Michael Taylor AFA whose Disclosure Document can be found at  This article is of a general nature and no substitute for personalised financial advice.