GROUNDBREAKING RESEARCH INTO THE NATION’S ‘MONEY PERSONALITIES’
OVER 12 MILLION BRITONS EVADE THEIR FINANCES AND LIVE IN DENIAL
PEOPLE WHO HOARD THEIR MONEY MAY HAVE “FINANCIAL ANOREXIA”
20% OF THE POPULATION DON’T LIKE GOING TO THE PUB AS THEY DON’T LIKE SPENDING THE MONEY
An exclusive Reader’s Digest survey has revealed some startling statistics about the nation’s spending habits. Marking the launch of www.rdmoney.co.uk, a new jargon-free site offering a range of financial products from Reader’s Digest Financial Services Ltd, this innovative research explores five distinct money personalities:
The Ambler: doesn’t worry about their finances until they hit a financial brick wall
The Evader: avoids opening statements and lives in denial as to the amount of debt they owe
The Hoarder: is often worried about what they could lose and can be motivated by fear
The Splurger: is prone to bouts of impulsive buying leaving them in the red
The Validator: spends or invests money to be recognised and to improve self esteem
These money personalities give a unique insight into the population’s very different attitudes towards their finances and the effect these may have on their lives. They indicate financial strengths and weaknesses and can shed light on how, and why, people react emotionally to money.
Results of the survey conclude that we are a nation not in control of our finances. While 59% of the population can be identified as Amblers - those who don’t worry about their finances until they hit a financial brick wall - a startling 25% are Evaders, which equates to over 12 million adult Britons living in denial about their financial situation and possibly ignoring their debts.
Awareness of a money personality type is a first step toward taking control. As part of www.rdmoney.co.uk visitors will be able to identify their money personality by taking part in an online Money Personality Quiz.
Harvey Jones, an independent financial expert who writes a twice weekly blog on www.rdmoney.co.uk, comments; “Your personality may dictate how you spend or save your money, but sometimes you have to fight against your own worst instincts. Once you have worked out your own money personality, it may be time to embark on a little financial self-improvement.”
The following personalities illustrate the extreme nature of our attitudes to money, analysed by Brett Kahr, Senior Clinical Research Fellow in Psychotherapy and Mental Health at the Centre for Child Mental Health in London and Registered Psychotherapist, with additional comment from Harvey Jones.
EVADERS
25% of the population, the equivalent of 12.3 million adult Britons, are classified as Evaders - living with their ‘heads in the sand’ when it comes to their finances
28% of adult Britons have minimal savings that they use to treat themselves
18% of respondents said that they ‘like to eat out whenever they feel like it’
The Evader money personality often feels confused or angry about their financial situation whilst simultaneously avoiding opening bank statements and preferring to forget about the amount of debt they owe.
Leading psychotherapist Brett Kahr encounters this behaviour in his daily practice; “Evaders - those who shove their red letters from the telephone company or the bank into the bin or bottom drawer - use avoidance to block out their financial worries. By avoiding financial responsibilities, we remain in an infantile or child-like state, and thus can still preserve the secret fantasy that we have never grown up, and that a mummy or daddy will one day come along to save us from all the scary tasks of adulthood."
Harvey Jones comments; “Evaders need to pull their heads out of the sand and take a close look at their financial position. Their overdraft or credit card statements may make unpleasant reading, but ignoring them will only make matters worse. The sooner the Evader tackles their problems, the better. Playing the Lottery every week is no substitute for careful financial planning.”
HOARDERS
14% of adults in Great Britain are classified as having The Hoarder money personality
20% of respondents, the equivalent of almost 10 million adult Britons, said they ‘don’t like going out to the pub as they don’t like spending the money’
5% of the population do not buy presents (63% of those are men)
Being classified as a Hoarder, someone who may be motivated by fear to make unnecessarily cautious financial decisions, may seem justified during the current economic climate. However, Brett Kahr argues that “many Hoarders may actually have sufficient funds in their banks and pensions, but refrain from any sort of pleasurable spending due to an inhibition with their personality and might even be thought of as struggling with ‘financial anorexia’. This might result from guilt in experiencing pleasure, identification with very frugal parents, or from a whole host of other psychological causes.”
Harvey Jones observes; “Hoarders who leave their money in a familiar low-interest deposit account for safety’s sake could be missing out on better returns elsewhere, often with little or no extra risk. Plus, of course, nobody likes a miser!”
SPLURGERS
Only a small percentage (0.4%) of respondents were defined by researchers as being Splurger’s
But 18% of adults in Great Britain said that they prefer to spend their money rather than worry about investing it
5% - the equivalent of 2.6 million adult Britons – said they would first find the holiday they wanted and then ‘worry about how to pay it off later’.
Whilst only a small number of the UK’s population could be wholly defined as Splurgers, someone who spends freely on credit cards and regularly gets caught up in the moment, a significant proportion of the population display Splurger characteristics.
Harvey Jones cautions that even small aspects of The Splurger’s carefree financial attitude may result in a lifetime of money worries. “The first step to financial sanity is to prepare a budget planner, listing your monthly income and spending. You might be surprised to discover how much cash you are frittering away. Then the hard work begins, sticking to that budget, clearing your debts, and setting a little aside for the future that you have been ignoring for too long.”
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NOTES TO EDITORS
www.rdmoney.co.uk was developed by Reader’s Digest Financial Services Ltd to help simplify the process of finding reliable, jargon-free, financial services information. Featuring independent commentary on a variety of finance and money related topics from Harvey Jones, the site also allows visitors to obtain obligation free information and quotes, purchase products online and access special customer offers
Brett Kahr is available for interview. Kahr is Senior Clinical Research Fellow in Psychotherapy and Mental Health at the Centre for Child Mental Health in London, and a Registered Psychotherapist
Harvey Jones is a freelance financial journalist who writes regularly for The Daily Express and The Sunday Express, Guardian Unlimited, Reader’s Digest, Motley Fool, Money Market, Choice and lovemoney.com
More results from the survey are available. The research for was carried out online by Opinion Matters / Tickbox.net, on behalf of Reader’s Digest, between 27/03/2009 and 02/04/2009 amongst a nationally representative sample of 1,417 UK adults aged 16+. Opinion Matters / Tickbox.net follow the codes of the MRS (Market Research Society) and are fully registered and compliant with the Data Protection Registrar
For more information about Reader’s Digest please contact
Hannah Blake or Nazneen Nawaz at Colman Getty
T 020 7631 2666
E hannah@colmangetty.co.uk / nazneen@colmangetty.co.uk
