Money Equals Emotions, Not Mere Math.

By Jeffrey Meenes, CFP® (Published Date August 17, 2023)

Discussing money is a universally acknowledged necessity, yet the difficulty we encounter in addressing it is undeniable. Perhaps this struggle emerges because money isn't confined within the realm of equations and calculations; it resides in the intricate corridors of human psychology. Our education on money, if any, has often emphasized spreadsheets and calculators, promoting notions of rationality and logic. However, when faced with the VISA bill alongside our partner, minor disagreements escalate into disputes – akin to unknowingly grabbing hold of an electrified fence.

Though the certainty of arithmetic declares that 2+2 is perpetually 4, the equation transforms when applied to money – yielding not numbers, but rather emotions. The revelation dawns: money isn't a matter for mathematicians; it's the domain of psychology. Given its emotional undercurrents, addressing money can be perplexing. Acknowledging this difficulty is essential, yet complexity should not be an excuse for evasion.

Patterns emerge around financial behaviors: excessive spending, seeking fleeting happiness in inexpensive trinkets, neglecting savings, and putting off retirement planning. In essence, our financial actions misalign with our professed values when it comes to capital expenditure, savings, and investments. Strikingly, no one ever guided us in mastering this domain, so the time has come to become our own educators.

If money were confined solely to spreadsheets, how might we quantify greed? What place does fear hold on our financial ledger? And what of the haunting notion that we might fail to provide our children the life we envisioned? These intricacies interlace emotions with financial matters, underscoring the crux: money equals emotions, not mere math.

Recognizing this truth expedites our journey toward realistic expectations regarding money discussions. As this insight takes root, we free ourselves from the fallacy that money is a sterile numerical pursuit, paving the way for more honest, constructive conversations.