Adult Influencers of an Individual’s Finances

As you learned, financial behaviors, sentiment, knowledge, and management systems start forming in childhood and are often established as habits by the time a person reaches adulthood. The problem here is that, once habits form, they are hard to change.

When working with adults, modifying their existing behaviors and expanding the education to include financial recovery is necessary for most people. In this section, you will learn about what influences an adult’s finances.

In This Section We Will Cover

Financial Situation – Initial Financial Decisions Impact Finances

Once they move away from home, the initial decisions people make will have a big impact on their finances later. Many people make early mistakes that take many years to overcome and put them behind in other important financial areas they should address.

Financial Behaviors – Addressing Established Behaviors

Financial habits are formed young, and data show that people in general have common behaviors that take them further away from financial wellness.

Financial Sentiment – Addressing Established Sentiment

As people age, they become more stuck in the ways they feel toward their finances. Avoidance, fear, and worry are common sentiments people develop around money.

Financial Education – Education for Adults Also Includes Recovery

Most adults never received any formal financial education. They rely on web searches, their friends, and financial servicepeople who sell products for their financial knowledge.

Systems & Support – How Money Is Managed

The data show that many adults lack financial systems that help them work toward their financial goals and make managing money easier.