Not that long ago, retirement meant being put out to pasture, with long days punctuated by occasional games of golf and bridge. But today, with lengthening life expectancies and dwindling pensions, many Americans are looking to retirement as an opportunity to start a new business. “We’ve never before seen so many seniors who are this active and doing so many things,” says Lisa Gundry, a professor of management at DePaul University’s Kellstadt Graduate School, who has worked with seniors in DePaul’s business incubator program. “They’ve accumulated enough financial security so that they are better able to take a risk on a business than someone who is younger and has a mortgage and small children.” (more…)
Our attitudes and beliefs about money have their roots in value-laden messages we have picked up along life’s journey. These money messages are not only clothed in the words of others, but in their actions as well.
The following paragraphs include a series of questions designed to jog your money memories. To gain insight into your financial beliefs and behaviors, look first to your childhood experiences.
In your home growing up, was there an atmosphere of plenty or scarcity? How did your parents and grandparents demonstrate their money beliefs? Did the adults in your life demonstrate responsible or irresponsible money management behavior? (more…)
For many years, the prevailing theory was that individuals have a genetically determined happiness set point.
In other words, scientists believed that each person could temporarily experience more happiness (depending on circumstances, relationships, and life events), but would then slide back to his or her “pre-programmed” set point. In fact, less than two decades ago, one researcher was quoted as saying, “It may be that trying to be happier is as futile as trying to be taller.” (more…)
Getting people to feel less stressed when thinking, talking, and making decisions about money is the goal of Financial Therapy; a combination of psychology and financial advice that is focused on developing healthy relationships with money.
While a financial counselor usually comes in at a point of crisis—like bankruptcy or intractable financial conflicts between spouses—the role of a financial therapist is to help us understand the stories we tell ourselves, true or not, about money. These “money scripts” usually reside outside of our consciousness, and act as an invisible force guiding our thoughts, feelings, and decisions about money. (more…)
In her blog “Good Thinking,” research psychologist Denise Cummins explains why the topic of allowances raises such a high level of concern and confusion for parents.
Allowances are powerful things. They are a child’s first exposure to the power of personal choice that financial means can bring. It is for this very reason that parents approach it with a mixture of fear and trepidation.
To some, it is the quintessential way to teach children financial literacy as well as character traits like patience, thrift and generosity. To others, however, allowances are dangerous things that take away parental power and authority, and teach nothing more than greed. (more…)