- The main basis of common attitudes towards money arises from how they spend.
- Basic needs result in an individual saving for future use and emergencies.
- The advantage of saving is that there is always some money in case of a rainy day.
- The other main attitude towards money emanates from direct earning and spending.
- The main advantage of this is that an individual has fun and enjoyment especially with the things that come from spending money.
- In retrospect, individuals are different and their views on money vary in a similar manner.
Two Attitudes towards Money
Different people have different attitudes towards money. The diversity of attitudes varies because of the diversity in people’s views. Each person has a specific view towards different aspects of life. Money is usually a contentious issue since it is the driver of all human activities. People work hard in their everyday activities to maintain their basic needs and wants. The two most common attitudes toward money are based on the way people spend money. Some people have the view that money should be earned and spent on the basic needs while the rest is saved. On the other hand, others think that money should be earned and spent on whatever one desires.
First, the focus on basic needs is driven by the need to save for future use and emergencies. People who have this perspective towards money have the constant need to save (Gilbert, Fiske and Lindsay 296). The money that they earn is usually budgeted for and the budgets are followed strictly. This attitude is associated with people who are careful and wary of the future. In addition, such people are concerned about emergencies that may arise forcing them to have some extra money for such circumstances. Besides, old age is also a concern for people with this perspective. They feel that they have to save so that they have an easy time during old age. In addition, people with this attitude are wary of the investments that they make because it is unlike them to take risks. They only invest in places where there is a surety of making profit.
The advantage of having this attitude towards money is that, a person will always have some money to spend incase of an emergency. The investments made by such people are also likely to be more successful. In addition, by saving money they have a secured a future incase they lose their job or other sources of money (Gore 5). One major disadvantage of having this attitude is that, a person does not enjoy the luxuries of life even if they can afford them. Besides, they might lose great investment opportunities because of the fear of taking risks.
The other common attitude towards money is that of earning and spending. This is an attitude found with the more outgoing kind of people. They believe that when a person works hard to earn money, they should take time to spend it too (Miller, 34). Saving is not an option for such people and when they do, they save very little amounts. It is also likely that they will withdraw the money and spend it. People who have this attitude tend to spend their money on luxurious things like cars, big houses, clothes and frequent holidays. This means that the money earned is spent in a very short time and they start the process all over gain. Such people make quick decisions as to where to invest and this may be positive or negative. It is an attitude that directs many people towards consumerism. They focus on purchasing material things, which are seen as a form of happiness.
The major advantage of having such an attitude is that, a person usually has fun and enjoys every opportunity in life. In addition, such people could get great investment deals by trying out different avenues. However, such people have a difficult time during emergencies (Miller 36). This is because they usually have no money left to spend when they are in crisis. The constant search for new things to purchase may result in debt whenever they do not have enough money to spend. It is also difficult for them to cope in old age.
In conclusion, people are diverse and so are their views towards money. However, it is
Important for a person to adopt an attitude that is best for them. This is because achieving a balance between these two attitudes is the best way to forge ahead. It is not advisable to be too rigid or to be a spendthrift. A person should strive to save for the future while satisfying their needs and enjoying life.
Gilbert, Daniel, Susan, Fiske, and Gardner, Lindzey.The Handbook of Social Psychology. New York, NY: Oxford University Press, 1998. Print.
Gore, David. Attitudes toward Money in Kenneth Burke’s Dialog in Heaven between the Lord and Satan. Kb Journal, 14 April. 2009). Web. 30 July. 2010. http://www.kbjournal.org/david_gore
Miller, Dorothy. Scales for Measuring Attitudes toward Money. s.l: s.n. , 1965 . Print.