Culture that we have been brought up in plays a significant role in our financial decisions. Just have a look around, there might be two colleagues who are from different cultural backgrounds. One might be spending lavishly and enjoying it with a YOLO (You Only Live Once) mindset, while the other might save a lot and live frugally. They might earn almost similar amounts of money, but their view on money and financial decisions differs.
Jack might only consider himself and take riskier financial decisions. He might invest in cryptocurrency and will be ready to take up losses if it occurs. While John might think about the family and go for investment options such as bonds and high yield saving accounts. Jill focuses on the impact of her decisions on family and avoids too much of a risk.
Whether we prioritize saving, spending, or investing is heavily influenced by the cultural upbringing. Some culture will emphasize on building wealth, another culture might place emphasis on spending lavishly for experiences. Traditions and expectations of society in many cultures force people towards spending lavishly on grand weddings.
When it comes to debt some culture does not encourage debts. But people in a different culture, see debt as a tool for financial growth.
Sometimes we have to think rationally rather than emotionally when dealing with financial decision. This would help us grow financially. We are not here to judge anyone’s view, but we have to accept that culture plays a significant role in our money decisions and our mindset towards money. Then we can focus on shifting our mindset and correct our lens in which we see money in a better way.
