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Understanding Money Attitudes: Misers, Spenders, Economizers

The document discusses three distinct attitudes toward money: misers, spenders, and economizers. Misers hoard wealth at the expense of their quality of life, spenders struggle to manage their finances and often overspend, while economizers budget wisely for future needs. The current economic climate necessitates a shift towards economizing for survival amidst inflation and financial challenges.

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28 views3 pages

Understanding Money Attitudes: Misers, Spenders, Economizers

The document discusses three distinct attitudes toward money: misers, spenders, and economizers. Misers hoard wealth at the expense of their quality of life, spenders struggle to manage their finances and often overspend, while economizers budget wisely for future needs. The current economic climate necessitates a shift towards economizing for survival amidst inflation and financial challenges.

Uploaded by

zehrabkr8
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ATTITUDES TOWARD MONEY

“A wise person”, Jonathan Swift is reported to have said,


“should have money in his head, but not in his heart”. At
first sight, what appears to be one of the most agreeable
ideas might later prove a bit controversial because people
these days are very concerned with the global as well as
the country’s economy and money. It seems that more people are having
to learn to spend less and to do so wisely due to the hard times we are
experiencing. Contrary to Swift’s witty aphorism and the present
economic conditions, it can easily be argued that people’s attitudes
toward money certainly differ, some of which are reflected by the
following three types of individuals.

One common type is misers. They accumulate money in banks if their


income is large, or in the house stuffed in mattresses or under the living
room rug if they are low-income people. They seem almost obsessed
with the idea of saving. The misers deprive themselves of many things,
and most live miserably in order to hoard their wealth. For example, my
90- year-old neighbor, having gained the sympathy of the other
neighbors, often collected groceries and money from them. She dressed
shabbily, and lived in an old deteriorated house. After her death it was
discovered that this old woman had left thousands of dollars to the
church and other organizations. She left nothing to her family.

Another type is called spenders. The spenders are people who cannot
seem to hold on to their money. They have a tendency to spend too
much on too many unnecessary things. They are often too generous,
making elaborate gifts to friends and family. Credit cards in some
spenders’ hands are often dangerous weapons. They become addicted
to using them only to regret it later when the bills come in, they are
unable to pay. Other spenders like to gamble, and this can also be
destructive if it turns into a vice. Many spenders do not necessarily throw
their money away but give it to charities for good causes, simply because
they enjoy giving. For instance, my uncle Mario is a big spender. He
makes over 25.000 dollars a year, but he never has any money in his
savings account because he spends his entire paycheck each week on
necessities and luxuries. Last week he spent 500 dollars on a new
moped, not because he needed one because he thought it would be fun
to own one. As a result of his spending, every year in April, he has to
borrow money to pay his taxes because he has spent it all.
One final type is economizers. The economizers are practical people
who spend wisely, usually making use of a budget. They can enjoy more
and various material things and activities due to their careful utilization of
funds. They spend in moderation and save in moderation for their future
retirement or the education of their children. Parents are usually the best
economizers. To illustrate, my mother, who budgets our money, resists
the temptation to buy things we do not need and cannot afford. Instead,
she makes a point of saving a certain amount of money from each of my
father’s paychecks. As a result, we always have some money in the bank
for emergencies and for education expenses. When my brother started
college, we had the money to pay for his tuition and books.

In conclusion, economizers are what most of us are having to be in the


2020’s. The acute problems of inflation, shortages and low salaries in
this nation are forcing us to become economizers. It is the only way to be
if we are to survive in the future. Hopefully, the misers and big spenders
will modify their extreme attitudes towards money and convert into
economizers.

Adapted from Refining composition skills (2009).


Adapted from Refining composition skills (2009).

Common questions

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Spenders can adapt their habits by implementing budgeting practices that economizers use, such as setting aside a portion of their income for savings and distinguishing between needs and wants to control impulsive spending. This approach reflects the mindset of economizers, who balance enjoyment with financial planning, ensuring funds are available for essential future needs such as emergencies or education, as illustrated by the example of a mother who budgets and saves routinely.

Misers are characterized by their obsessive saving and deprivation of personal enjoyment to accumulate wealth, as exemplified by the story of the neighbor who lived frugally yet left a significant inheritance to organizations. Spenders are marked by their inability to hold onto money, often spending excessively and impulsively, sometimes leading to financial difficulties, as shown by the example of Uncle Mario spending his entire paycheck and needing to borrow for taxes. Economizers represent a balanced approach, spending and saving wisely through budgeting, allowing them to enjoy life while preparing for future needs, like the example of a mother budgeting for family needs and saving for education.

Spenders are often motivated by a desire for immediate gratification, social status, and generosity, resulting in impulsive and sometimes excessive purchases, as seen in Uncle Mario's need to buy a moped for fun. In contrast, economizers are motivated by long-term stability, financial security, and the ability to meet future needs, prioritizing prudent budgeting and saving over immediate expenditures. Their motivation lies in ensuring financial preparedness and balance, evidenced by the mother who budgets and saves for education and emergencies.

Misers may have strained social relationships due to their extreme frugality and avoidance of spending on social activities, leading others to view them as distant or ungenerous. Their legacy might be mixed, as they could be remembered for their wealth accumulation in lieu of personal connections, similar to the old woman who donated her savings to organizations but left nothing for her family, highlighting a potential disconnect between personal wealth and familial or social bonds.

For misers, the long-term implications often include substantial financial savings and assets, but potentially at the cost of personal happiness and enjoyment. They may leave behind significant wealth, like in the example of the neighbor who left thousands to institutions but lived in poverty. Spenders, in contrast, may face long-term financial instability due to their excessive spending, leading to debt accumulation, inability to handle emergencies, and reliance on borrowing, similar to Uncle Mario who consistently spends his full income, leaving little to invest or save for major future expenses.

Individuals can transition by gradually incorporating budgeting and moderate spending into their routine, setting specific financial goals that include saving for enjoyment and future needs, rather than mere accumulation. Counseling or financial education can help misers recognize the value of balancing saving with spending on experiences that enhance quality of life, fostering a mindset shift akin to that of economizers, who judiciously balance resources for both current enjoyment and future security.

The economic climate of the 2020s, characterized by inflation, shortages, and low salaries, has necessitated a shift towards economizer behaviors, as people are pressured to manage limited resources effectively to ensure financial stability. The ability to budget and save for emergencies or future goals, like education expenses, has become crucial for survival in this challenging environment, prompting a societal movement towards economization to cope with these economic pressures.

Psychological factors driving someone to become a miser may include a deep-seated fear of poverty or insecurity, leading to an obsessive need to accumulate and hoard assets. This could stem from past experiences of financial instability or cultural beliefs valuing thriftiness. The lack of balance seen in economizers or the value-driven spending of spenders is overshadowed by the miser’s focus on financial control, often at the cost of personal fulfillment and social engagement.

The budgeting practice of economizers ensures a portion of income is consistently saved, allowing them to handle unexpected financial challenges such as emergencies or sudden expenditures without resorting to debt. This practice provides a safety net absent in the habits of misers and spenders, who either have capital tied up in savings but are unwilling to spend, or have little to no savings due to impulsive spending. Thus, economizers maintain financial resilience through prudent foresight and disciplined saving.

If a majority transitioned to economizing, society could benefit from increased financial stability and less personal debt, as individuals would be better prepared for future expenses and emergencies. The change could lead to a more balanced economy where consumer spending is consistent yet controlled, supporting sustainable economic growth. This shift could reduce reliance on credit and decrease financial vulnerabilities that result from extreme saving or spending habits, fostering a more financially secure populace.

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