The emotional and psychological aspects that shape our financial behaviors are crucial to understanding our money management. Therapy can significantly enhance your financial well-being — but how does it work?
Matt Lundquist, a psychotherapist trained at Columbia University and founder of Tribeca Therapy, recently spoke about the impact of therapy on financial health. Together, they explore the underlying causes of money-related issues and outline steps to foster a healthier relationship with finances. Here are some key insights from their discussion.
The Influence of Childhood on Financial Perspectives
Jean Chatzky: What is the process behind financial therapy? How does it contribute to better financial health?
Matt Lundquist: Financial therapy operates on the same principles as therapy for other challenges; it requires exploration to understand the complexities tied to an individual's relationship with money. For many, growing up in a financially constrained environment shapes adult perceptions of wealth. The experiences of scarcity, often seen in parents' financial habits, can profoundly affect how we handle money as adults.
People frequently think that achieving financial success will resolve past issues, yet even after overcoming material challenges, emotional baggage can linger, subconsciously influencing adult financial behaviors.
Identifying an Unhealthy Relationship with Money
Jean Chatzky: It can be difficult to determine if you have an unhealthy relationship with money. What signs should you look for?
Matt Lundquist: A common indicator is the feeling of surprise upon reviewing your credit card statement, thinking, "I should have more money than this." When your perceived financial reality clashes with actual financial data, it suggests an unhealthy relationship with money.
These discrepancies might not reveal the entire picture, but they should prompt you to reflect more closely. If it feels daunting, consider inviting a partner or friend to review your financial statements with you. Use these moments of confrontation with reality as motivation to examine your situation further.
Addressing Financial Challenges as a Couple
Jean Chatzky: Research shows that frequent disagreements about finances significantly increase the likelihood of divorce. What strategies can couples implement to harmonize their financial approaches?
Matt Lundquist: Money discussions often come with assumptions that partners should inherently know how to manage finances. During courtship, it's essential to have open conversations about money. Before complexities increase, couples should take the opportunity to discuss their financial philosophies and plans.
Bringing financial discussions to the forefront can help prevent future conflicts. Although letting issues slide can be a valuable skill, addressing them proactively fosters better understanding and cooperation.
Final Thoughts: Utilizing Therapy for Financial Improvement
Jean Chatzky: When should someone consider financial therapy, and how can they find the right therapist?
Matt Lundquist: If you've sought solid financial advice yet struggle to apply it consistently, or if you sense emotional factors hindering your decision-making, therapy may be beneficial.
Seek out a therapist who is comfortable discussing financial matters. Don't hesitate to ask questions to ensure they can help with the emotional aspects tied to your financial life. People should be discerning when choosing a mental health professional.
