Money Phenotype

Yesterday I talked about money archetypes. There are few basic money personalities that are commonly found in the financial independence community. When I talk about the money maker and the penny pincher I am referring to deeply ingrained behaviors that in some respects are just plain human nature. The question thus becomes, are our financial behaviors preordained or a result of an amalgamation of what we learned over time? This is your typical nature vs nurture discussion. The result of whatever admixture makes up us, is our money phenotype.

Phenotype: *Whereas the “genotype” is the genetic makeup of an organism, the phenotype is how genetic and environmental influences come together to create an organism’s physical appearance and behavior. … Variation in phenotype is an important element in evolution. *

Can we evolve? Can we get better at handling our finances, or are we doomed to follow the dictates of our genetic material.

Nature

We all know them. Maybe they are friends or relatives. A hapless neighbor or a struggling coworker. We see their money mistakes as clear as day, and yet time and again we are not able to help them correct. They can regurgitate the right steps and understand the financial mechanics, and yet somehow it all falls apart.

They spend too much, save too little, and tend to make a mess out of any well-intentioned investment.

And we sigh, and say they are bad with such things, and generally frown at such behavior. Until we find that they are just like their crazy uncle or spendthrift grandparent. They walk the same, talk the same. Money even burns the same hole in their pocket.

Which all makes sense except that they never lived with these relatives. They never shared a home or learned from such fiscally inept behavior. In fact, their parents may have been much more frugal and wise. Their money phenotype seems completely unaffected by environment, and completely ruled by wayward genetics. Passed down in the worst sort of way.

Nurture

Yet, we also know of many who are completely the opposite. Loose of coin at an early age, it seems like no bit of financial information will ever stick. Just when it looks like they will be a complete disaster, they respond to good financial modeling from their parents. Or discover Dave Ramsey and cut up all their credit cards.

It was as if their money DNA has been stripped and cleaned by the right nurturing hand. The money phenotype has transformed like a chameleon revealing an inner financial independence enthusiast.

Something clicked.

Why It Matters

If we are to understand ourselves, if we are to help others, we have to be able to parse out what makes up our money phenotype. What levers can be pulled to either enhance or decimate our innate genetics? How the right coaching can model good behavior that not only makes intellectual sense, but sticks.

Especially if you are a parent. While my son is a money maker, my daughter is a penny pincher. How do I teach my son to be more frugal and my daughter to be more adventurous?

Final Thoughts

We each have a money phenotype which is an expression of our genetic makeup altered by environmental phenomenon. Nature verse nurture. In order to build within ourselves and others healthy financial habits, it is necessary to attempt to alter this phenotype.

We want to enhance the good and minimize the bad.

This is no easy task.

It makes sense that such polarizing figures as Dave Ramsey and Mr. Money Mustache have come to the fore of the financial independence movement.

It takes quite a personality to alter DNA.