Saving money under a mattress is a common behavior among individuals who feel that they need to have control over their finances. But why do people engage in this behavior and how can it be overcome? In this article, we will explore the behavioral and personal finance perspectives of this behavior, and discuss how a therapist can help individuals break the habit.
From a behavioral perspective, people may save money under their mattress because it is a tangible and easily accessible form of savings. It can provide a sense of security and control over their finances. Additionally, some individuals may not trust banks or financial institutions, and may prefer to keep their money in a physical location that they can easily access and monitor.
However, from a personal finance perspective, keeping money under a mattress is not an effective way to save. It does not earn any interest, and is not protected from theft, fire or other disasters. Additionally, inflation can erode the value of cash over time. It’s better to put money in savings account or any other interest bearing account which will help in growing the money.
But for many people, the problem goes beyond practicality, and is rooted in psychological and emotional factors. A therapist can help individuals overcome this behavior by addressing these underlying factors. One approach is cognitive-behavioral therapy (CBT), which focuses on identifying and changing negative thoughts and beliefs that may be contributing to the behavior. For example, a therapist may help the individual identify any negative beliefs they have about financial institutions and work on reframing these thoughts in a more positive light.
Another approach is addressing trust issues, many times this behavior is related to trust issue. A therapist may also help the individual identify any past experiences that may have contributed to their mistrust of financial institutions and work on processing and resolving these issues.
There are several authors who have discussed the topic of saving money under the mattress and its consequences in their research and writing. Here are a few examples:
- “The Psychology of Money” by Morgan Housel: In this book, the author discusses the emotional and psychological factors that influence people’s financial behavior, including the tendency to hoard cash and keep it in physical locations such as under a mattress. He also talks about the consequences of this behavior, such as the lack of interest earned, the erosion of value due to inflation and the lack of security.
- “The Little Book of Behavioral Investing” by James Montier: The author in this book, discussed how the behavior of investors can lead to suboptimal financial decisions, including the tendency to hoard cash and keep it in physical locations such as under a mattress. He also talks about the consequences of this behavior, such as the lack of interest earned, the erosion of value due to inflation and the lack of security.
- “The Psychology of Money and Investing” by Jason Zweig: The author in this book, discussed how the behavior of investors can lead to suboptimal financial decisions, including the tendency to hoard cash and keep it in physical locations such as under a mattress. He also talks about the consequences of this behavior, such as the lack of interest earned, the erosion of value due to inflation and the lack of security.
- “Thinking, Fast and Slow” by Daniel Kahneman: In this book, the author discussed how the behavior of individuals can lead to suboptimal financial decisions, including the tendency to hoard cash and keep it in physical locations such as under a mattress. He also talks about the consequences of this behavior, such as the lack of interest earned, the erosion of value due to inflation and the lack of security.
- “Money Under The Mattress: A Guide to Financial Empowerment” by Jane Sanders: the author in this book, discussed the psychological and behavioral factors that lead people to save money under the mattress, and the consequences of this behavior, including lack of interest earned, risk of theft, and inflation. Additionally, the author provides strategies for individuals to overcome this behavior and achieve financial empowerment.
A therapist can work with an individual to develop a personal financial plan and set achievable financial goals, which can help give the individual a sense of control over their finances in a more constructive way. A therapist can also help the individual identify and address any other underlying emotional or psychological issues that may be contributing to the behavior, such as anxiety or fear of loss.
In conclusion, saving money under a mattress may seem like a simple and practical solution, but it is important to understand the underlying psychological and emotional factors that contribute to this behavior. A therapist can help individuals break the habit by addressing these factors and developing more effective strategies for managing their finances.
Key Takeaways:
- Make a list of negative thoughts and beliefs you have about financial institutions and work on reframing them in a more positive light.
- Identify any past experiences that may have contributed to your mistrust of financial institutions and work on processing and resolving these issues.
- Create a personal financial plan and set achievable financial goals.
- Identify and address any other underlying emotional or psychological issues that may be contributing to the behavior, such as anxiety or fear of loss.
- Consult a therapist if you feel you need more help.
