Introduction
Memories from childhood before the age of twelve related to money can help shape a person’s financial behavior later in life. Personal experiences influence both the development of positive traits and the potential manifestation of negative characteristics in the future (Rosenberg et al., 2020).
Empathy and Its Double-Edged Impact on Financial Behavior
Several qualities that are associated with childhood experiences can be identified and manifest in current life with dual results. Among the closest childhood experiences are empathy and resilience. Empathy contributes to a more adequate perception of others’ financial problems and can promote compassion. This quality was related to the first childhood observation of homeless and unemployed citizens who had no money at all and had to ask strangers for it.
Nevertheless, empathy for others’ problems in this context can be seriously detrimental to one’s finances in adulthood. Unfortunately, empathy contributes to gullibility and indiscretion, which unaccountable citizens or scammers can exploit. Such adverse experiences of cheating without serious consequences have already occurred because of an excess of compassion.
Resilience as a Product of Financial Hardship in Early Life
A child who grew up in a financially secure family may have a very light attitude toward spending or saving. Therefore, having experienced a financially unstable and heterogeneous family situation, an additional legacy and result of a child’s money memory was resilience, which exists in some cases as opposed to empathy (Rosenberg et al., 2020). Such quality allows one to overcome financial failures or successes confidently and to adapt to new conditions in time.
Conclusion
Thus, the attributes mentioned above were most likely formed due to the so-called monetary memory. The experience of financial transactions before the age of twelve can make one aware of the need for resilience and empathy for others but does not deprive one of curiosity. Growing up in a family with not the highest income fostered empathy and trained resilience simultaneously. Despite the lack of adaptability in my current reality, my financial situation can still be assessed as satisfactory. Flexibility and resilience in the face of problems are mandatory for financial growth.
Reference
Rosenberg, M. D., Martinez, S. A., Rapuano, K. M., Conley, M. I., Cohen, A. O., Cornejo, M. D., Hagler, D. J., Jr, Meredith, W. J., Anderson, K. M., Wager, T. D., Feczko, E., Earl, E., Fair, D. A., Barch, D. M., Watts, R., & Casey, B. J. (2020). Behavioral and neural signatures of working memory in childhood. The Journal of Neuroscience: The Official Journal of the Society for Neuroscience, 40(26), 5090–5104. Web.