One might think the only color related to managing money is GREEN…and lots of it! However, money management is complex and related to our individual personality. Those who have been through Real Colors® personality style training understand that there are four colors related to personality styles, Gold, Blue, Green and Orange. Each of these colors has a specific set of personality characteristics that describe them. This is true of many personality tests; the important thing to realize is that money management is tied to our personality and to our emotions. Managing money is not always as easy as black or white.
Money is often linked to our sense of self worth, perceived power, control, security, or success to name a few. This linkage demonstrates the emotional connection. If who we are is tied to the amount of money we have, this can have an affect on the financial decisions we make. For example, if a feeling of security is important to an individual, then they will be more likely to plan and save for the future. If security isn’t as important to an individual, then they are less likely to save for the future and will concentrate more in the moment.
Let’s take a few minutes to look at money management through the Real Colors® perspective. The Gold personality has a need to plan, organize and feel secure, so this personality will be more likely to develop family budgets, and seek input from financial advisors to get a retirement savings plan in place. Gold personalities will also be more likely to judge others and the way that they handle their money. This makes it a little more challenging to come to a compromise with golds when managing money in partnership.
Blue personalities tend to be more emotional, concerned about others’ feelings, and not focused on the details, but rather the big picture. This personality may be more likely to spend money to make them feel better if they are having a bad day. They will be thinking about and planning for the future, but sometimes falling short because of the lack of attention to the details of the planning. Communicating about money issues with blues will be an open, easy conversation, unless there is conflict involved. If a blue feels the other party involved does not agree with them, they will avoid having the money conversation at all costs.
Green personalities prefer to deal with issues without emotion; they use logic and are also very good researchers. This personality will be good at determining what options are available and will have the best long term return all mapped out for their retirement savings. They will not spend money on what they would think of as frivolous; just the basics are good enough for them.
Orange personalities tend to be more carefree and living in the moment. They will think about and plan for the future when someone tells them they must do it. They are more willing to take risks and will probably have riskier investments then the Golds & Greens who are more conservative. Oranges are also more likely to spend now and save later.
Even with these very brief descriptions, you can begin to see there is a relationship between our individual personality and how we handle money. The challenge comes when we are working together with a personality of a different color to manage our money together. More than likely, compromises will have to be made by both parities involved. Understanding your own money personality, your values and your goals becomes very important when working with a spouse, business partner or family member to mange your joint business and personal accounts and plan for the future. You must understand yourself before you can communicate your goals to someone else. The first step is to spend some time getting to know yourself, how you feel about money and what your goals are.
There are several quizzes and websites that can help you understand your money management personality by looking at your spending habits, your saving habits, your goals and values, and other aspects of money management. Googling ‘money personality’ or checking out one of the many bank websites with financial information is a good starting point for determining your money personality. Each site has different names for the personality types, but personality descriptions are very similar from quiz to quiz. Spending a little time getting to know your money personality will help you as you make financial decisions, plan for the future, and maybe correct some of the current mistakes you might be making.
To learn more about this topic and other financial risk management topics a new workshop will be offered this winter for women in agriculture. This workshop will provide a more in-depth study of the financial risk related to agriculture and teach tools to increase women’s risk management skills. The program is inspired by the recent Annie’s Project Workshops and organized much like those workshops. Unlike the Annie’s Project Workshop, this class will focus only on one area of risk management, financial risk.
Workshops will consist of four evening classes during the winter of 2011. Each session will be three hours from 6pm – 9pm. The workshops will be very hands on and interactive. More information will be available in the coming months and will be advertised in local publications. There will also be an opportunity to learn more at the upcoming Farm Science Review in London, Ohio. Women in Agriculture programming will be a featured OSU Extension program in the Firebaugh Building. Presentations and information will be available all three days of the review. The Farm Science Review will be held September 21 -23, 2010. For more information visit the website at http://fsr.osu.edu. To learn more about the financial workshops or the Farm Science Review you can also contact the OSU Extension Office in Erie County.