During class this week, a guest speaker, Claire Loupe of the Federal Reserve Bank of Atlanta (New Orleans office), gave a presentation regarding the manner in which one's financial habits and attitudes affect the way someone handles their finances.
**The views expressed here do not reflect the views of the Federal Bank of Atlanta.**
The following are the important points which I documented during the presentation:
Claire Loupe
- Works for the Federal Reserve Bank of Atlanta
- Has a Bachelor's Degree in Business Education and a MBA
- Works with students, teachers, leaders with companies in area to encourage personal financial knowledge
- Economic and financial education specialist
If financial management and planning is about basic math, adding and subtraction, why do many people in U.S. find themselves in financial trouble?
- Emotions
- Behavior patterns can make or break a plan
- Individuals’ financial plans/goals vary
The behavioral component of money management is tightly influenced by emotions.
- Emotion (attitudes) + habits (History) = varied action and results
Money Habitudes
- Habit: something you automatically do
- Attitude: something you automatically think
- Our environment greatly impacts our habits later. We may pick them up or rebel against them later.
- Also influenced by our experiences and feelings
- There is ALWAYS a different perspective; it depends on you.
Influences to Your Spending
- People: Being around certain friends or people can affect your behaviors
- Be aware of who causes you to spend more than normal.
- Emotions: many people usually handle money one way when life is good and differently when stressed
- Be aware of how others are affected by stress when considering personal financial plans. (Find individual's middle ground)
- Example situation: typically can save but can blow it all playing video games, on vacation, or with “retail therapy”
Outcomes for in class assignment regarding our individual habitudes:
**The views expressed here do not reflect the views of the Federal Bank of Atlanta.**
The following are the important points which I documented during the presentation:
Claire Loupe
- Works for the Federal Reserve Bank of Atlanta
- Has a Bachelor's Degree in Business Education and a MBA
- Works with students, teachers, leaders with companies in area to encourage personal financial knowledge
- Economic and financial education specialist
If financial management and planning is about basic math, adding and subtraction, why do many people in U.S. find themselves in financial trouble?
- Emotions
- Behavior patterns can make or break a plan
- Individuals’ financial plans/goals vary
The behavioral component of money management is tightly influenced by emotions.
- Emotion (attitudes) + habits (History) = varied action and results
Money Habitudes
- Habit: something you automatically do
- Attitude: something you automatically think
- Our environment greatly impacts our habits later. We may pick them up or rebel against them later.
- Also influenced by our experiences and feelings
- There is ALWAYS a different perspective; it depends on you.
Influences to Your Spending
- People: Being around certain friends or people can affect your behaviors
- Be aware of who causes you to spend more than normal.
- Emotions: many people usually handle money one way when life is good and differently when stressed
- Be aware of how others are affected by stress when considering personal financial plans. (Find individual's middle ground)
- Example situation: typically can save but can blow it all playing video games, on vacation, or with “retail therapy”
Outcomes for in class assignment regarding our individual habitudes:
- Main Description: Planning – You use money to intentionally reach your goals.
- Secondary Description: Security – You use money to ensure your financial security.
Article 1 - What Are the Four LifeValues?
(September 23-29)
- Inner LifeValues
- Social LifeValues
- Physical LifeValues
- Financial LifeValues
- This recovery leaves a lot to be desired.
- The new boom is a rehash of the old one.
- Big businesses are doing a lot of buying.
- Investing in housing is nothing like buying a home.
- Interest rates are on the rise.
(September 23-29)