6. The Psychology of Money

Are you a compulsive spender, or do you hold on to your money as long as possible? Are you a bargain hunter? Would you rather use charge accounts than pay cash? Your answers to those questions will reflect your personality. According to psychologists, our individual money habits not only show our beliefs and values, but can also stem from past problems.

Experts in psychology believe that for many people, money is an important symbol of strength and influence. Husbands who complain about their wives' spending habits may be afraid that they are losing power in their marriage. Wives, on the other hand, may waste huge amounts of money because they are angry at their husbands. In addition, many people consider money a symbol of love. They spend it on their family and friends to express love, or they buy themselves expensive presents because they need love.

People can be addicted to different things, for example, alcohol, drugs, certain foods, or even television. They are compulsive in their addictions. That is, they must satisfy these needs to feel comfortable. In the same way, according to psychologists, compulsive spenders must spend money, for those who buy on credit, furthermore, charge accounts are even more exciting than money: in other words, these people feel that with credit, they can do anything. Their pleasure at spending enormous amounts is actually greater than the pleasure they get from the things they buy.

There is even a special psychology of bargain hunting. To save money, of course, most people look for sales, low prices, and discounts. Compulsive bargain hunters, however, often buy things that they don't need just because they are cheap. They want to believe that they are helping their budgets, but they are really playing an exciting game: when they can buy something for less than other people, they are winning. Most people, experts claim, have two reasons for their behavior: a good reason for the things that they do and the real reason.

It is not only scientists, of course, who understand the psychology of spending habits, but also business people. Stores, companies, and advertisers use psychology to increase business. They consider people's needs for love, power or influence, as well as their basic values, beliefs and opinions, in their advertising and sales methods.

Psychologists often use a method called "behavior therapy" to help individuals solve their personality problems. In the same way, they can help people who feel that they have problems with money. They give them "assignments." If a person buys something in every store that he enters, for instance, a therapist might teach him self-discipline in this way. On the first day of his therapy, he must go into a store, stay five minutes, and then leave. On the second day, he should stay for ten minutes and try something on. On the third day, he stays for fifteen minutes, asks the sales clerk a question, but does not buy anything. Soon he will learn that nothing bad will happen to him if he doesn't buy anything, and he can solve the problem of his compulsive buying.