AP PSYCHOLOGY

Detailed explanation-1: -There are two common attitudes toward money, one of optimism and abundance and one of scarcity and pessimism. People with an attitude of scarcity have a negative view of money and see money as a source of anxiety, fear or disgust.

Detailed explanation-2: -From family experiences to other factors such as the media, a range of influences shape our views of the world – including the money habits we put into practice each day. Whether we have patterns of spending, saving, investing or even budgeting, these habits are usually shaped by our past experiences.

Detailed explanation-3: -Money attitudes are not perfect predictors of financial behaviors. However, how we feel about budgeting, spending, and investing can and does impact our financial goals. Indeed, our attitudes can affect the entire financial planning process, especially when working with others who may not share our perspectives.

Detailed explanation-4: -You can evaluate your financial wellbeing by examining your relationship to money at four levels: financial literacy, values, emotional and symbolic meanings, and processes for dealing with money, according to financial psychologist and Emory alumna Mary Gresham.