The Financial Independence Blog

Healthy Family Discussions About Wealth Series (Part 2 of 3): A Happiness-Focused Money Mind®

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In Part 1 of our series, we concentrated on a Fear-Focused Money Mind® and its corresponding concepts. In order to successfully move money to future generations, it is imperative to have greater insight into the emotions that drive financial decisions and to facilitate discussions about money values. By giving children the much needed financial tools to arm themselves into adulthood, you will help their self-esteem, give them tools to make better decisions, thereby greater confidence and peace of mind when entering the real world.

The way you make financial decisions determines your entire life, and 90 percent of our decisions are based on emotion. By understanding, and discussing, the different concepts of money management within a family, the greater the insight into the emotions that drive financial decisions. In this article, we take a look at the second focus: The Happiness Money Mind®.


  • Primary goal is satisfaction
  • Never feels like they have enough money or time
  • Maximizes the pleasure from their resources
  • Doesn’t spend enough time evaluating financial decisions
  • Too casual about future risks
  • Overconfidence and Anchoring are common behavioral biases


  • This child has pretty much spent their allowance before they receive it.
  • Decisive, even with big decisions.
  • This personality lacks the ability to delay gratification or control the impulse to buy.

Those with a Happiness Focus can improve their decision-making by understanding that they will almost always envision better outcomes than they might ever experience. Evaluate if they are thinking objectively about the potentially negative outcomes and recognizing the importance of slowing down and delaying gratification by conducting objective analysis.

There are ways to teach money skills to each Money Mind® focus, using different tactics for each. Using an “allowance” is a good way to help in developing these skills for children. By teaching the connection between hard work and earning money kids can adapt more easily and transition into adulthood. It teaches them discipline and responsibility.

As children get older, having them to outside “work” at your office, for a friend or neighbor can help build character by teaching responsibility, accountability, and the connection between work and earning.