Understanding Your Financial Style: Tips for Managing Your Finances

It’s only natural for couples to have different perspectives and beliefs on managing money and finances. In fact, these beliefs are ingrained into us very early on, which then place us into a specific category called a “money archetype.” A lack of compatibility between these archetypes often creates contention in relationships. However, understanding both you and your partner’s money archetype is a major step toward reaching your shared financial goals, while also improving your level of safety and trust.

Continue reading to gain a deeper understanding of your financial style as we explore the five primary money archetypes. Plus, we’ll share the resources you need to guide you toward a balanced financial relationship.

(Note: If you're unsure about your money style, take our Quiz now to discover it.) 

If you’ve ever found yourself debating whether or not you should make a purchase simply because saving is far more appealing than spending, then chances are you fall into the Saver archetype. Savers are frugal and cautious with money and often prioritize saving their dollars over spending them. On one hand, you’re great at creating financial security for yourself as you’ve built up a reliable savings, but on the other hand you tend to find it difficult to justify purchases that aren’t out of necessity.

In a relationship, you’re the reliable partner who can be trusted to put money aside for future goals or emergencies. However, you may also bump heads due to your lack of flexibility when it comes to splurging on something you or your partner may want.

As a Saver, you have a unique advantage when it comes to setting yourself up for your golden years. By using an online investing app, you can put your money saving prowess to good use by investing in a Traditional, Roth, or SEP IRA. To help you expand your savings, consider banking with SoFi. SoFi offers savings rates well above the national average so you can have more money to put away for your future.  

Shopping and splurging can be a fun pastime for some, but for others, it can be the very thing that prevents them from developing stable financial habits. If you’re someone who prioritizes material possessions or experiences over saving for the future, then you definitely fall into the Spender archetype. Whether you’re an impulsive or intentional shopper, overspending has probably had a negative effect on your bank account.

In a relationship, your spending habits may cause a significant amount of strife between you and your partner, especially as you plan for your future. While they may enjoy receiving gifts, going on trips, or trying new experiences, it could be frustrating if your partner can’t rely on you to put money aside for future goals like buying a home or starting a family.

To help you achieve balance between spending and saving, you can take advantage of money tracking apps. Not only can you track your spending, but you can set monthly spending targets to prevent you from overspending while staying within your budget. One way you can use your spending habits to your advantage is to pay off your student loan debt or your home mortgage. With competitive rates and flexible options, you can make consistent payments that will help you achieve future financial stability and success.  

Becoming financially independent is no easy feat. For some, it takes years of hard work to build the necessary habits needed to take control of their finances, and for others, financial independence has been ingrained in them since they were young. While it can feel empowering to rely on no one but yourself to achieve your financial goals, you may occasionally find it challenging to share finances with your partner. If this sounds like you then chances are you fall into the Financially Independent archetype.

In your relationship, you tend to be a reliable person who can be trusted to make smart financial choices. You may even be the breadwinner that also manages the primary expenses. While these are positive attributes to have, you may also struggle with merging your finances with your partner or handing over control.

In order to protect your assets and create a safety net for yourself and your dependents, financially independent individuals should consider investing in online insurance. With the financial means to do so, those who are financially independent often set their sights on purchasing valuable properties and expensive vehicles. Investing in homeowners insurance and auto insurance provides financial protection and peace of mind in case of unexpected events while also helping to mitigate financial loss or legal liability. 

As you aim to protect your physical assets, it is equally as important to protect yourself online. With cyber insurance, you can protect yourself from cyber-attacks, identity theft, financial fraud and phishing scams when you browse websites, make online purchases, and access your online banking accounts.

Whether you intend on being a stay-at-home spouse or you struggle with financially supporting yourself, chances are you fall into the Financially Dependent archetype. Those who fall into this archetype often feel uncomfortable discussing or managing money and tend to focus on spending rather than saving for long-term goals. If you and your partner are content with this dynamic then there may be no need for you to find ways to be a pillar of financial support in your relationship. However, if you and your partner find yourself in constant disagreements over how money is being handled in the relationship, then it may be time to find new ways to become more financially independent.

One way you can achieve a sense of financial independence is by investing your money. With an Automated Investing account, you can take a hands-off approach to investing by having a portfolio of stocks recommended to you based on your specific goals. If you’ve accrued any amount of debt, then taking personal action toward paying it off is a huge first step toward becoming financially independent. Depending on your financial situation, taking out a personal loan is an efficient way to pay down your debt until you can stabilize your financial standing and begin planning for the future.

Having a healthy relationship with money as an individual and within a partnership is one of the strongest attributes one could have. If you fall into the Collaborator archetype, then you have a strong financial foundation and clear goals for the future. You believe in maintaining a level of open communication with your partner when it comes to your finances and you’re always flexible when it comes to budgeting, saving, spending, and investing. You value both the present and future financial goals of you and your partner and strive to achieve balance.

In order to promote open communication and financial transparency in your relationship, consider creating a joint account through SoFi Checking and Savings. Using a joint account to cover bills and combined expenses is a great way to create a sense of solidarity in your relationship. Additionally, both you and your partner can work towards your shared financial goals by assessing your spending and saving habits, establishing an effective budgeting plan, and ultimately growing your savings by contributing to your joint account.

Knowing your money archetype can help you identify your financial habits and better understand your relationship with money. While there is no right or wrong money archetype, it’s important to be mindful of the ways in which your beliefs and patterns surrounding money can impact your relationship. By taking advantage of online tools and products that cater to the needs of individuals within any money archetype, you’ll develop the necessary skills needed to take control of your finances and successfully plan for the future.