Understanding your money heritage

Have you ever wondered why some people find it easy to save but to others it seems impossible? Or why some communities seem to churn out risk-taking business ventures, while others are more prone to charitable giving? Or why unmanageable debt is passed down from one generation to another?

Our history, where we come from and the values that we have been taught play a significant role in shaping our attitudes and behaviours regarding money. Whether its cultural, familial or historical influences, all these factors affect how we view and handle financial matters.

Here are ways that your heritage might influence your relationship with money:

1. Cultural values: Different cultures have varying attitudes towards money. For example, some cultures may emphasise saving and frugality, while others might prioritise spending on experiences and social connections. Your cultural background can shape your financial priorities and practices. Some of us come from families where family and community support is emphasised more than personal independence, which may result in you practising a more communal approach to your finances, such as pooling resources to support extended family.

2. Family traditions: Your family’s financial practices and beliefs can have a lasting impact on how you save, spend, borrow, give and even earn your money. As an example: if you grew up seeing your parents or guardians playing the lottery every week or buying scratch cards, but often the cupboards would be empty and basic essentials would not be covered. Because of this you might become extremely frugal with how and what you spend your money on. Or, conversely, you might believe that hard work alone is not enough and put more of your faith in the hands of luck.

3. Historical context: Your family's economic history can also influence your financial mindset. For example, families that prioritise financial literacy might encourage discussions about budgeting, investing and financial planning, while those that don’t might leave you less prepared to handle money effectively. This also applies to how you witnessed your family deal with debt – whether they used credit responsibly, struggled with debt, or avoided it altogether – this can influence your approach to borrowing, managing and even how you pay off your debt.

4. Social expectations: Growing up in poverty can often impede your dreams, and once you attain a certain level of success, the community you come from may expect you to live a particular lifestyle, which is often materialistic – to show you’ve “made it”. It could be expecting you to buy a car you can’t afford because a certain make of car gives you a seat at the table. But it is important to remember to plan for your financial future by investing or saving for the future. It’s also important to budget wisely and set boundaries with your friends and family.

5. Religious or spiritual beliefs: Your faith also shapes how you earn, save, give and what you spend on. Giving is a big part in the lives of people of faith – it is considered more blessed to give than to receive. Choose causes and organisations that align with your personal values and interests. This is one way you can ensure that your giving is meaningful and resonates with your beliefs.

6. Economic opportunities: The economic environment you grew up in has a big impact on how you use your money. If you grew up in an environment where money was scarce this might lead to a mindset of frugality, caution, and saving. Whereas if you grew up in an affluent home it may have given you an attitude of spending, investment and risk-taking. For example, most people with a frugal mindset often buy preloved items such as clothes, which saves them a lot of money, and they can redirect those savings towards their savings/investments.

Reflection questions

Understanding how these aspects of your heritage influence your money habits can help you make more informed and intentional financial decisions. It can also guide you in integrating your values and traditions with your financial goals. If you're looking to reflect on this, consider asking yourself questions like:

• What financial values or practices were emphasised in my family?

• How do my cultural background and community influence my spending and saving habits?

• Are there any financial beliefs I want to challenge or reinforce based on my heritage?

• What money heritage would I hope to pass down to my next generation?

By exploring these areas, you can gain insights into your financial behaviours and make choices that align with both your personal values and your heritage.

For more information and resources you can check our Values & Money course which helps us examine our attitudes, behaviour and values around each of the money values explored above. You can also read our previous blog on how to overcome a scarcity mindset.