Your relationship with money is related to far more than how much cash you have. In fact, psychological influences could be having more effect on your decisions and how you feel about wealth than you think.
Speaking to the Guardian in July 2025, financial psychotherapist Vicky Reynal stated she believes thoughts and feelings about money have “everything to do with our earliest experiences, deepest yearnings, and misgivings”.Â
Her unusual role sees Reynal work with clients to assess why they’re making certain financial decisions. She notes that while many clients understand what they need to do to improve their financial position at a rational level, they can’t bring themselves to do it.Â
For example, some people know they need to cut back to balance their budget, but still obsessively purchase non-essential items like shoes. Or, on the other end of the spectrum, one client has ample means to purchase nice things but will only buy the basics.Â
Taking a step back to understand why you make certain decisions could help improve your relationship with money and your chances of reaching long-term goals. Read on to discover some of the psychological influences that might affect you.Â
Recognising these psychological influences could improve your relationship with wealth
Previous experiences
Past experiences have a profound effect on how you view current situations, and lessons from your childhood can be particularly influential. Â
If your family had a mindset that money is meant to be spent, you might find it difficult to save or invest for the future, even though you know it would benefit you in the long run. Alternatively, if you were encouraged to save all your money as a child, you may be reluctant to spend money on luxuries even if they’re affordable for you.Â
A financial plan is centred on your goals and identifies the steps you need to take to turn them into a reality. So, by working with a professional, you could overcome the influence that past experiences might have.Â
Money beliefsÂ
“Money beliefs” refers to deeply held and unconscious ideas you have about money. Again, these often start to form in childhood, and it can be difficult to spot when they’re influencing your decisions.Â
For example, Reynal notes that if you grew up in a culture that thought of wealth as “immoral”, it can lead to a dilemma around what it means for you to become wealthy. For some, this money belief could mean they sabotage their financial security or build up wealth they worry about using for fear of judgment.Â
Working with a financial planner could provide an opportunity to re-examine your money beliefs and why you’re making certain decisions.Â
Comparing what you have to othersÂ
As the common saying goes, comparison is the thief of joy.
Sometimes, looking at what other people have can negatively affect your relationship with money. Such behaviour could then affect both your small and large financial decisions.Â
You might feel envious when a family member shows off their latest gadget. But if you let emotions get the better of you, it could lead to you splurging on the item even though you didn’t want it before. Or you may be looking forward to your retirement at 65, but feel less enthusiastic once you discover a friend plans to give up work earlier.Â
While it can be difficult at times, try to focus on your financial plan and stop making comparisons. Everyone’s path is different, and usually, you only see a snapshot of someone else’s life.Â
Get in touch to talk about improving your relationship with money
Setting clear goals and having a financial plan that reflects your circumstances could have a positive effect on your relationship with money. Please get in touch to discuss how you might turn your goals into a reality and feel more confident about your financial future.Â
Please note:
This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.