Money isn’t just numbers on a screen or a stack of banknotes in your wallet—it’s also deeply personal. For many of us, how we think, feel, and act with money is shaped not only by what we earn or spend but by who we are, where we come from, and the financial stories we’ve inherited along the way.
Our upbringing, community, cultural values, and early financial experiences silently shape our financial behavior in ways we often don’t recognize. This silent influence plays a significant role in how we save, invest, take risks, or avoid them altogether. And for beginner investors, especially in their 20s or 30s, understanding this connection is a crucial first step toward building a healthier financial life.
The Family Blueprint: What Did You Learn Growing Up?
For most people, the first “money lessons” don’t come from school—they come from home. Whether your parents talked openly about finances or treated it as a taboo topic, those early experiences leave an imprint.
If you grew up in a household where money was tight, you might carry a scarcity mindset, feeling the need to hold on tightly to every euro or being hesitant to invest. On the flip side, if you saw reckless spending or lived in financial instability, you might now crave control and financial security, even to the point of financial anxiety.
Research supports this. A 2023 study by Morningstar found that adults who had early exposure to money conversations—like budgeting, saving, or investing—were significantly more likely to start investing before age 30 and reported higher financial confidence later in life. In contrast, those without such exposure often delayed investing due to fear of making mistakes.
Cultural Norms and Community Expectations
Our cultural background also plays a key role. In some cultures, family financial support is a shared responsibility—young adults might feel obligated to send money home, delaying their own investing or saving goals. In others, discussions around wealth might be frowned upon or viewed as boastful, leading to a lack of openness or knowledge sharing around financial planning.
Even geography matters. For instance, in Southern European countries like Italy or Spain, homeownership is deeply embedded as a financial goal, often prioritized over investing in stocks. Meanwhile, in the U.S. or Northern Europe, financial markets are more commonly embraced as a route to build wealth—especially among younger generations, with over 60% of U.S. millennials owning stocks as of 2024, according to Gallup.
The key takeaway? Our decisions are not made in isolation. They are often guided by invisible frameworks we inherited, and recognizing them is essential to building a strategy that aligns with your real goals—not someone else’s expectations.
Gender, Wealth, and Risk Tolerance
Identity also intersects with how different groups approach financial risk. Women, for example, have historically been more conservative investors than men. A 2024 Vanguard report showed that, on average, women hold 20% more of their portfolios in cash or fixed income products than men—despite performing better over time due to fewer trading errors and more long-term discipline.
Why the risk aversion? It can stem from many factors—lower average income, gender pay gaps, or fewer role models in finance. But awareness is the first step toward change. Understanding that your caution might not be about your ability, but your environment, allows you to reassess and recalibrate.
From Reflection to Empowerment
So how do you move forward with this knowledge? First, take a moment to reflect: What money stories did you inherit? Are they helping or hindering your financial growth? Do you save out of fear or invest out of confidence?
Second, give yourself permission to unlearn. You are not confined to the financial identity you were given—you can rewrite it. That might mean starting small with automated investments, talking openly about money with friends or mentors, or learning the basics of diversification and compound interest.
Financial literacy isn’t just about knowing how markets work. It’s about understanding yourself as an investor. When you align your financial decisions with your values—rather than inherited fears or pressure—you build not just wealth, but resilience.
Rewrite the Money Narrative
We all come to money with baggage—some heavier than others. But your past doesn’t have to define your financial future. Recognizing the link between identity and money gives you the power to break cycles, challenge assumptions, and build a financial life that truly fits who you are and where you want to go.
Wealth isn’t just about numbers. It’s about freedom, confidence, and control—and those are things worth working toward, no matter where you start.
