While financial literacy often emphasizes logic—like the importance of saving, investing, and avoiding debt—our emotions frequently override what we know to be rational. For example, someone may understand that saving for retirement is crucial, but they may still spend impulsively because shopping gives them short-term emotional relief.
This emotional relationship with money is often formed early in life. The way our parents talked about money, the financial experiences we witnessed growing up, and even moments of financial scarcity or abundance shape our beliefs. Some people grow up thinking money is a source of stress or conflict, while others may see it as a measure of success or security.