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As children, we're often taught that spending too much money is bad. We're led to believe that if we want to be successful in life, we need to save our money and not waste it all on unnecessary things. And while this advice is well-meaning, it's not always accurate.

Think about it, spending money can actually be a good thing - as long as you're spending it on the right things, that is. Money wasted on experiences or items that bring you joy is not money wasted. It makes you happy! And that, our friends, is priceless. But spending money on things that you don't need and will never use? Now that's wasted money.

So, how can you tell the difference between good spending and bad spending? Well, it all comes down to your spending behavior. Your spending behavior is determined by a variety of factors, including your personality type, your current financial situation, and your long-term goals.

From the things you buy to the way you manage your money, your spending behavior says a lot about you. And it can have a major impact on your financial health. If you're not careful, bad spending habits can lead to debt, poor credit, and a host of other financial problems. But if you're mindful of your spending and make an effort to control your impulses, you can stay on track and reach your financial goals.

If you're interested in learning more about how your spending behavior affects your finance and credit, read on for a crash course in behavioral finance, and the various personality types that come with it.


Behavioral finance is the study of how people's psychology affects their financial decisions. It looks at how our emotions, biases, and cognitive errors impact the way we make economic choices.

The goal of behavioral finance is to understand why people make the financial decisions they do and help create better, more rational strategies. For example, a financial advisor may use behavioral finance to help a client who is prone to impulsive spending. They can work with the client to develop a budget and spending plan that considers their spending triggers and helps them avoid making impulse purchases when it comes to their habits.

Behavioral Finance: Financial Habits

Spending habits are just one of the many areas where behavioral finance can be helpful. For instance, we know that there are good and bad spending habits, but did you know that there are also good and bad financial habits?

  • Some good financial habits include: Paying your bills on time, maintaining a budget, and saving regularly. These behaviors can help you stay out of debt and build up your savings over time.

On the other hand, some bad financial habits can put you in a difficult financial position.

  • Bad financial habits include: Spending more money than you make, using credit cards recklessly, and not saving for future goals. These behaviors can lead to debt and financial instability.

Whether we like it or not, our habits become predictors of future purchases. If you have good spending and financial practices, you'll likely continue to make good choices with your money in the future. However, if you have bad spending and financial habits, it's more likely that you'll end up in debt or face other financial problems down the road.

But habits are just one piece of the puzzle when it comes to spending behavior.

Another critical factor, one rooted deep inside each and every one of us, is our personality type. For example, certain personality types are more likely to make financial decisions that can lead to debt or other problems, while others are more likely to succeed financially.

Let's take a look at the four primary personality types and how they tend to spend their money. See if you can spot yourself!


Type A - The Director

The first personality type is Type A, or the Director. People with this personality type are confident, decisive, and competitive. They're often successful in their careers and love to be in control.

The Type A personality is incredibly goal-oriented, but not very detail-oriented. They prefer to delegate tasks to others where possible, and they're not afraid to take risks. Directors oppose limitations and constraints placed on them, which is why you'll never find them working for someone else for very long. Owning an entrepreneurial spirit, they may be a business owner or endeavor to run their own firm in the future. The Type A personality is rarely discouraged and typically radiates confidence.

As natural workaholics, it's typical to notice Directors putting in whatever effort is required to achieve their goals. They may appear hurried at times, especially if they believe someone is spending too much time going over details. This only makes them feel like they're wasting their time.

Type A personalities are motivated by money, but not just the spending of it. They're also inspired by the accumulation of wealth and the status that comes with it.

When it comes to the spending habits of a Director, they're typically pretty high. They enjoy spending money on things that make them look and feel successful. This may include expensive clothes, cars, jewelry, or other status symbols. They're not afraid to spend money on themselves, and they're often generous when it comes to gifts for others. However, because Directors are always looking for ways to increase their wealth, they're also pretty savvy when it comes to spending. They're not likely to make impulse purchases, and will always look for ways to get the best value for their money.

Financial Habits:

  • Paying bills on time

  • Maintaining a budget

  • Saving regularly

Type B - The Socializer

The next personality type is Type B, or the Socializer. People with this personality type are outgoing, social, and charming. They love to be around other people. In fact, they're often the life of the party!

Socializers enjoy talking about themselves. Some people may consider it selfish, but a Type B's real aim is to be accepted. They need to feel like they're part of a group or community and spending time with others helps them achieve that. They're also natural caregivers and love helping others, even if it means sacrificing their own time or resources.

While Type Bs are social creatures, they're not the best choice for a strict working environment. They prefer to work in teams but require a certain amount of freedom to do their best work. That being said, they may have trouble following rules or working on tasks that are repetitive in nature.

Socializers are spending personalities. They love to buy things for other people, and they're not afraid to splurge on themselves, either. They enjoy the finer things in life, and they're not above spending money to get them. However, their spending is often more impulsive than that of a Type A.

They may also have trouble saving money because they're always looking for ways to enjoy themselves. Socializers are more likely to be drawn to things that will give them a good time in the moment, even if it means going into debt. As a result, they're not very good at saving money, and they often have a hard time sticking to a budget.

Financial Habits:

  • Paying bills late

  • Impulse spending

  • Minimal savings

Type C - The Thinker

Logical, analytical, and systematic, Type C personalities are the Thinkers of the bunch. They like to have all the facts before making a decision, and they're not afraid to ask questions. In addition, they're always looking for ways to improve, and they're quick to point out flaws in any plan.

Thinkers are motivated by control and problem-solving. They need to feel like they're in charge of their own lives, and they need to be able to solve the problems that come their way. As a result, they're often drawn to careers that allow them to use their analytical skills, such as finance, accounting, or engineering.

When it comes to spending, Thinker personalities are pretty frugal. They don't like to waste money, and they're always looking for ways to get the best value for their dollar. They're not opposed to spending money, but they'll only do it if they believe it's a wise investment. Thinkers are also pretty good at sticking to a budget, and they often have a large amount of savings. After all, they are accountants by nature, so it only makes sense that they would be good with money.

Financial Habits:

  • Sticking to a budget

  • Saving money

  • Avoiding impulse purchases

  • Making wise investments.

  • Debt-free

Type D - The Supporter

Last but certainly not least, we have the Supporter personality type. People with this personality type are kind, caring, and helpful. The Type D personality is one that takes a more leisurely approach to both their job and life in general. They desire job stability and longevity, making them content with the same bland task every day.

Now, this is not to say that the Supporter personality type is lazy. In fact, they are far from it. They just don't see the point in rushing through life, and they're more than happy to take their time. This leisurely approach often means that they are incredibly skilled at their jobs. After all, they've had years of practice!

Type Ds are known for their generosity, but they are pretty tight when it comes to spending their own money. They're not opposed to spending money on others, but they prefer to save their own hard-earned cash. This is likely due to their desire for stability and security.

Supporters aren't fond of taking risks, and security is crucial to them. As a result, they're content with a modest lifestyle, never looking for ways to show off their wealth. This doesn't mean that they're cheap, but they are definitely more frugal than most.

Financial Habits:

  • Saving money

  • Avoiding risks

  • Leading a modest lifestyle


Now that you know a little bit more about the four personality types, you might be wondering why it matters. After all, spending habits are spending habits, right?


Your personality type actually has a lot to do with your spending habits. For example, a Type A personality is more likely to be drawn to spending money on things that will give them a sense of accomplishment or status. On the other hand, a Type D personality is more likely to be content with a modest lifestyle, and they're not as concerned with impressing others.

Knowing your personality type can actually help you to better understand your spending habits and make changes accordingly. For example, if you're a Type A personality and you find yourself spending too much money on unnecessary things, you can use your knowledge of your personality type to help you curb your spending.

Similarly, if you're a Type D personality and you find yourself struggling to save money, understanding your personality type can help you to develop a savings plan that works for you.

In short, your personality type matters when it comes to your spending habits because it can help you make sense of why you spend the way you do. Once you comprehend the reasons behind your spending habits, you can make changes accordingly. So, if you want to get a better handle on your finances, it's time to start paying attention to your personality type!

If you're interested in learning more about the 4 personality types, check out this blog post from Hire Success - ''Understanding the 4 Personality Types''. They provide a complete overview of each personality type, and even provide you with words and phrases to help you identify each Type. Trust us; it's fascinating stuff!


So, we've talked about why your personality type matters when it comes to your spending habits. But what if you're not happy with your patterns? What if you want to make some changes?

If that's the case, the team here at ScoreNavigator is here to help! We've put together a few tips to help you change your spending habits, no matter what your personality type may be.

  • Create a budget: This one is important for everyone, no matter what your spending habits are like. A budget can help you to keep track of your spending and make sure that you're not spending more than you can afford.

  • Set financial goals: Having financial goals is a great way to stay motivated and on track. When you have a specific goal in mind (like saving up for a down payment on a house), you're less likely to make impulse purchases that could put your goal at risk.

  • Focus on needs, not wants: This is a good tip for everyone, but it's especially important for those who tend to spend money on unnecessary things. When you're making a purchase, ask yourself if it's something that you need or if it's something that you just want. If it's something that you can live without, put it back on the shelf and walk away.

  • Think long-term: It can be easy to get caught up in the here and now, but it's crucial to think about the future when it comes to your spending habits. If you're making a purchase that will help you in the long run (like investing in a good quality mattress), it's probably worth spending the extra money. On the other hand, if you're just buying something because it's on sale, you might want to reconsider.

  • Create a spending plan: This is similar to making a budget, but it focuses on your spending habits. A spending plan can help you identify areas where you're spending too much money and make changes accordingly.

  • Talk to a financial advisor: If you're struggling to get your spending under control, it might be time to talk to a professional. A financial advisor can help you to create a spending plan, set financial goals, and make other changes to help you get your spending under control.

  • Check your credit score - If you're trying to get your spending under control, one of the best things you can do is check your credit score. This will give you an idea of where you stand financially, and it can help you to make changes to improve your financial health. Check your score today at ScoreNavigator.


Changing your spending habits is not always easy, but it is possible. By following these tips, and taking note of your spending personality type, you can make transformations to improve your financial health. And if you're not sure where to start, our team at Score Navigator is always here to help!

Whether you'd like to raise your credit score, create a spending plan, or set financial goals, we can support you in taking control of your spending and improving your overall monetary well-being. Enroll today to get started!

We hope that this post helped to clear the air on behavioral finance! If you have any questions, feel free to leave them in the comments section below or get in touch. We're always happy to help in any way we can.

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