The material presented here is for educational purposes only, and is not intended to be used as financial, investment, or legal advice.
Quiz: What’s Your Money Management Style?
Your money management style says a lot about you. It can determine how successful you are at saving money, achieving financial goals and retiring in comfort. It can also reveal your strengths and weaknesses when it comes to prioritizing and planning for the future.
Answer the four questions below to reveal your current money management style.
1. What are your greatest strengths?
- A. Reliability and diligence
- B. Shopping smart and going with the flow
- C. Setting goals and accountability
- D. Patience and focus
- E. Restraint and research skills
2. How do you manage your money?
- A. I just wing it.
- B. I check my balances daily.
- C. Once a month, I revisit my budget and see if I'm on track.
- D. I regularly check my loan and credit card statements to see the balances.
- E. B, C and D - I do it all!
3. If you received a large windfall of cash, what would you do first?
- A. Go on a shopping spree
- B. Buy a few things I need and set the rest aside for later
- C. Finally get a new car or buy a home
- D. Pay down excessive debt
- E. Contact a financial advisor
4. What would give you the biggest happiness boost?
- A. Getting a free gift card in the mail. Time to hit the mall!
- B. Staying on track with my budget and having a full emergency fund
- C. Reaching my goal of saving for a big purchase, like a home or new car
- D. Getting a letter that says my car loan is finally paid off!
- E. Having more saved for the future than all of my friends. Woohoo! #supersaver
Mostly A: The Reward Seeker
This financial personality type knows how to game the credit card system to get more points. Why? It’s all about the rewards. While they may choose to take a cash back reward, it’s more likely that they choose a tangible item like a gift card. This gives The Reward Seeker a reason to manage their money well.
Think of it as a grown-up version of the “chore chart” you had as a kid. The gift card is the treat you get for smart money management. Use your credit card often, pay off the balance quickly and you’ll get rewarded with a gift card to your favorite big-box store, sports outlet or upscale makeup place — wherever you like to shop!
The downside is that it’s easy to overspend when you’re chasing rewards. That’s why reward-seeking is best for those who are really diligent in paying down credit card debt every month.
Mostly B: The Debit Diva
A common money management style, Debit Divas completely separate their spending cash from their savings. Typically, they set up direct deposit with their employer and have only the money they’ve budgeted for spending transferred into their checking account (usually with a little extra emergency money just in case). The rest is sent to a savings or money market account to plan for future purchases or retirement.
The Diva’s day-to-day purchases are all made on a debit card, which may reduce fees if they don’t already have a free checking account. If you opt for this money style, be sure to regularly check online banking to keep track of your purchases. When balancing your accounts, don’t forget to include any Auto Pay transactions and other bills if you pay them out of your checking account.
This style is great for those who need a little help saving since it automates your savings transfer so that you won’t even miss the money.
Mostly C: The Goal Setter
If you do better when focused on one goal at a time, this could be the perfect money management style for you! The Goal Setter chooses a goal, such as saving $2,500 for a vacation to Egypt and concentrates on filling up that trip fund. They use their checking account to pay for daily necessities and bills and open a savings account specifically for their goal — in this case, the trip. Once their goal is reached, they set a brand new goal and aim for that instead.
If you don’t multi-talk well and you tend to prioritize one goal at a time, goal-setting is the perfect fit. The downside is that you’ll have to put other goals, such as paying down debt, on the back burner.
Mostly D: The Prince of Payoffs
Payoff princes (or princesses) save for extra cash and funnel those funds toward their credit card balances or loan principal, paying more than the minimum balance. Then it’s time to rejoice when they see a zero balance on one of their credit card or loan accounts. Paying down high debt is a priority so they can work toward another BIG goal like saving more to invest more.
The downside of this money-management style is that it can feel like a revolving door. Pay off one debt and then another takes its place because you don’t have enough saved to cover the cost of anything new. But if you’re able to reach debt-free status, you’ll have a lot of extra money in your budget — which can mean saving much faster.
Mostly E: The Serious Saver
If you’re looking to buckle down and save for a major purchase such as a new car or a home, this style is a great place to start. The Serious Saver goes beyond a single savings account to really think about their various financial goals. They often have multiple savings accounts, including a separate emergency fund, retirement accounts and other savings solutions like money markets or IRAs that may earn higher interest.
The Serious Saver is focused on growing their money, so they may also venture into stocks, bonds and other investments with the help of a financial advisor.
This is a more advanced money management style best suited to those who are dedicated and have had success with saving. If you’re able to keep up with it, you’ll likely find yourself in a great financial position. #financialfreedom
What Your Result Says About You
There’s no “good” or “bad” result to this quiz. While you may lean toward a certain money management style now, as you change and grow that style may evolve. You may also fall into two style categories at once if you have multiple financial goals.
The important thing to remember is that your money management type should fit both your strengths and your financial priorities. By trying on the right style for you, you’ll reach your #goals faster and be more satisfied with the results.