You might have heard of the ‘love languages’, referring to the different ways that people show – and in turn – want to experience love.

Want sweet-somethings whispered in your ear? Words of affirmation are your love language. Or perhaps you’re a self-proclaimed cuddler, who gets the warm and fuzzies when giving or receiving hugs and kisses. Your love language is physical affection. Maybe you consider fixing your partner’s washing machine to be the greatest demonstration of your affection. Congrats – your love lexicon is service.

But perhaps you haven’t heard of the money love languages, says Claire Klassen, Consumer Financial Education Specialist at Momentum Metropolitan. “These relate to how we show our appreciation for money, and also how we manage it.”

And with any love language, there are always positive attributes and behaviours we need to guard against, says Klassen. “Identifying which love language and spending style we best resonate with is the first step towards understanding what drives our spending, and empowering ourselves to make better financial decisions.”

Which money love language do you speak?

Splurging

Those who identify with this money love language are those who tend to spend without hesitation; someone generous beyond expectations. They’re happy to splash out, spoiling themselves and their loved ones with lavish gifts and experiences, while often telling themselves that they will deal with the financial fall-out later.

Find yourself regularly closing your eyes and swiping your debit card? Do you view a budget as more of a light suggestion, than a plan to live by? Is YOLO your life motto? Then your money love language is very likely Splurging, says Klassen.

“The upside of this love language is that those who identify as Splurgers are typically very generous, spontaneous personalities who live life to the fullest. However, there are major pitfalls to this spending behaviour that you should be wary of; namely debt, and not having adequate savings or financial protection should something go wrong, she warns.

Her advice for Splurgers - to temper your spending behaviour without quashing your generous spirit.

“The first step is to safeguard against debt, by not spending money you don’t have. Always do your research before splurging on a gift – often there are better deals if you take a little time to browse for them, and make sure purchases are made with money you have, and not on credit.”

It is also helpful to ‘pay yourself’ before splashing out. “Transfer a pre-determined chunk of your money to a savings account so that you can start building a rainy day fund, and ensure that your life, disability and critical illness as well as income protection cover is up to date. Alternatively, pay your disposable income into a separate account and view that as your ‘spending’ account, which stops you from dipping into the money you need to cover your essential expenses and savings.”

Squirreling

‘Squirreling’ refers to storing all of your disposable income away for rainy days. Squirrels enjoy having a stash of money tucked away rather than spending (what they regard to be) frivolously; thus, those who identify as this money love language are often viewed by others as stingy.

“However, there are many positives to this behaviour, says Klassen, “as Squirrels tend to have a good amount of money saved for emergencies. They also usually have a sterling credit record, and are more likely to be granted a home loan should they ever apply for one, or might receive preferential interest rates on credit cards or loans.”

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She says that the downside, however, is not ever enjoying any of the money you work so hard for; living in wait of the rainy days at the expense of living right now. “Squirrels also tend to look for the cheapest options when they do spend, she adds, “meaning that they might be at risk of purchasing goods of inferior quality, which could end up costing them more in the long run.”

Klassen’s advice for Squirrels: “The trick is to strike a balance between saving diligently, spending prudently and enjoying the funds you have specially allocated for luxuries and fun.

“Although it is undoubtedly beneficial to save money, there’s a balance that we need to attain to live a healthy lifestyle. It’s important to consider the effect of only saving and not spending. Do you have reciprocal relationships that you can count on for assistance in times of need? If you never spend to help, support or treat others, they will never do the same for you. There is a saying, ‘no man is an island’; meaning that people are meant to be in relationships with other people – and not only their money.”

Spend-savvy

This love language is the gold standard, says Klassen. Those who identify as Spend-savvy are wise in the ways of the money world. They save prudently and spend wisely, with their eyes wide open. They make sound investment decisions. They avoid debt and stick to a budget every month, keeping a little aside for spontaneous purchases or enjoyment.

Spend-savvies are financially literate and understand the important role that risk cover plays in their portfolio. They have a will in place, safely stored with a fiduciary, and are open to taking calculated financial risks. They are usually well on their way to achieving financial freedom (if they’re not yet already there).

Klassen’s advice for Spend-savvies: While Spend-savvies might seem like financial unicorns, there is always an opportunity to brush up on your money knowledge and hone your skills even more.

“Consulting an experienced financial adviser who has the know-how to help you make impactful tweaks to your already-sound portfolio will help set you up on the path to building even more wealth.”

She says that recognising one’s money love language will assist in better understanding our emotional connection to money. “By knowing the dynamics of our innermost behaviour, we will be better prepared to pause and think clearly before making a financial decision.”