Welcome to the exciting month of May! We continue this month with bringing you insights on all you need to know about ‘money management’. Today we will be sharing on how our ‘cultural beliefs affect our money management skills’.
Remember that we had shared on how ‘belief systems’ remain one of the key components of building your personal finance to achieve financial wellness. In understanding how belief systems play out; we must take to mind that belief systems are values and attitudes that stem from cultural, social, gender and religious influences. Having that understanding helps us to begin to see topical issues around finance differently.
Let us start with the savings culture. Savings is typically one of the major attributes of money management, right… but have you ever asked yourself why it is somewhat easy for some people to save more than others even if they probably earn the same income? Now, there are foundational principles of finance as we have iterated on numerous occasions, yet it is easy to begin to see a pattern that brings to the fore the fundamental differences between people. (Check out our article on Money personalities).
Let’s quickly look at a country like Nigeria, does it support a national savings culture? Not necessarily; and this is not even evident in the sum we spend; it is the things we have elevated to be of value that speaks to the national attitude and culture as it relates to money. So you look at the spending pattern of the government, the lifestyle of the people and begin to understand that there are values steeped in culture that may seem popular but are wrong hence the need to have the ability to unlearn some of these cultural values.
In Nigeria, there are three dominant tribes: the Yoruba, Igbo and Hausa people and each of these tribes have unique money values. The virtue of values is either hinged on frugality, extravagance or legacy building which are ethos that have been transmitted down from generations. Ultimately, the attitudes of today are mostly shaped by our past. If we are only bound by the cultural values that are inherent in many of us, it becomes increasingly difficult to make the right financial decisions for yourself given that the world has evolved.
Whether your cultural values about money come from the understanding that it is a tool of calculation as a material form or a means of creating and sustaining differences in social hierarchy and rank; these practices must be backed by money management skills that can serve you for present and future needs. Since, no one can predict recession it will be foolhardy to underestimate the uncertainties of the future and not make adequate provision for it.
Conclusively, when we think about money and finance generally; it is wise to remember that the first thing to do is go back to the beginning of unlearning and relearning our money language and culture. Please understand that these cultural money values may not necessarily be wrong; it may just be that it is not in tandem with your financial objectives of the moment. Our abilities to unlearn and relearn ensures that our decisions are not only informed but tow the path of financial and mental wellness.
If you will like to check out more of resources and see what we are all about; visit www.prosharefoundation.com and follow our social media channels – twitter and Instagram @proshareFDN, on LinkedIn you can find us at Prosharefoundation and you can also access our creative contents via our YouTube channel as well. You can also speak to us via our email channel -firstname.lastname@example.org we will love to hear your money stories.
With love and wellness,
Proshare Foundation team.