Self-Control – Money Week

There will be many people (mainly men) feeling rather sheepish with the expose of participants in the ‘let’s do adultery’ web site Ashley Madison. The hackers of this website, the name derived from the two most popular female names of recent times, have created an international quilt laden concept (maybe). For most, denials will prevail, after all if one is prepared to cheat on ones partner continuing the subterfuge is hardly likely to demean personal criteria for character and behaviour. Historically religious did the guilt thing the best – for some the threat of purgatory being sufficient to follow the ‘non sinners’ line, for other guilt became a label. Something by which mothers especially controlled their family under the auspices of their particular religion and beliefs. John Knox was especially effective. When it comes to frugality many of his followers prevail today. Thou shall not mention their country of origin for fear of political incorrectness but just as the uses of the Ashley Madison web site know who they are (as do the rest of the world) so to with the niggardly – the countries of origin and religious beliefs.

In opening this article leading into money week my intention is not to be flippant but to expose the human frailties of behaviours. Some years ago now behavioural scientists (both psychologists and economists) tested kids and their gratification control. A little like a most recent TV advertisement showing children tempted by sweeties. What was previously thought from the scientist’s perspective was that personality traits of the young did not necessarily follow into older age. They tested the kids 20 years later and were hugely better off in most circumstances when they got older. What we know from many years in providing financial advice is that the religions got it right. Indoctrinate early and young and the habits are most likely to prevail. I use the example not to be demeaning but to emphasise to Mums and Dads that their behaviour will inevitably lead to similar behaviours from their children. Money week can only be successful financial control is practiced at home. Teaching the kids at school about money habits expecting them to be conscientious with savings and investing is wasted if Mum and Dad behave without self-control and display ongoing habits of self and instant gratification.

For those readers that link the cost benefit analysis of using the AM website versus the local ‘splash club’ – the likely savings element was unintentional, even in money week. But wouldn’t it be great if someone did the analysis of AM users – their background, country of origin and beliefs. Not likely to earn a Nobel prize in social science but it would probably get more youngsters interested in a science with previously negative and boring connotations

Unlike AM the role of your financial adviser is: To ensure your ‘financial affairs’ are in order and there are no surprises.