“To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly.” ― Henri Bergson

Throughout each period of our lives, we’re shaped by our experiences. One example of this is our relationship with money; as we make mistakes, learn, and grow, the way we view and handle money shifts.

Money = Fun

Did you get an allowance growing up? Even just a few dollars were exhilarating. Your understanding of money was likely limited – it was just a way to buy some candy or get that toy you wanted.

Your family upbringing, economic background, and schooling continued to shape your view of money as you grew up. If you didn’t grow up with much, you may have observed how you were treated badly because of it. If you had more than you needed, perhaps you didn’t fully understand the importance of it until later.

Money = Freedom

At some point in our lives, we all transition from relying on others to financial independence. Teenagers and young adults, thirsty for freedom, begin working to earn their own money. Going to college and moving out of their parents’ home bring them closer to independence.

Through experience, these young adults have tolearn how to handle money well. Independence ends up being harder than expected. With real-world consequences of poor money management, such as overwhelming debt and not being able to pay rent on time, young people learn not to take money for granted.

Money = Stability

As you get older, your view of money shifts yet again. More responsibility often comes your way: a spouse, children, homeownership, and more.

Instead of the focus on freedom that you had as a youth, your focus has now become stability. Money is a tool that’s required in almost every facet of life: caring for your health, keeping a roof over your family’s heads, and providing future education for your children, just to name a few.

Although you still have things you want to do, such as go on vacation or enjoy nice things, you have tobalance these desires with the responsibility you carry.

On top of daily concerns, you also begin thinking ahead to retirement  – now is the time to put aside funds that will eventually become your main income.

Money = Preservation

In your later years, after decades of hard work and personal growth, you approach retirement. Money still equals fun, freedom, and stability, but now it has an added facet: preservation. It allows you to continue caring for your needs, even after you leave the workforce.

The money you saved for retirement, likely coupled with Social Security, will sustain you for the rest of your life. It’s a weighty task. Your focus shifts to making it last: reducing debt, reevaluating your needs, looking into different investment methods, and choosing the right health and long-term care insurance for your situation.

You look past yourself, as well, and into the future; you plan how to provide for your loved ones when you’re gone. You want to leave behind a legacy.

Conclusion

Through every stage of life, our relationship with money changes. It’s logical why, too; our mindset changes to fit our current needs. For example, if you spent your whole life viewing money as a child does, just for fun, you’d neglect to plan for the future or cover the cost of your needs.

Each person’s financial situation is different, though, and your experiences are unique to you. We at AZTEC Financial Group would be happy to meet you wherever you’re at on your financial journey.