Chrometophobia: The Fear of Money
In a timeless scene from a classic Christmas movie, Lucy VanPelt explains to a depressed Charlie Brown that pinpointing fears (and labelling them) is the key to overcoming those fears. As anyone who remembers the scene knows, Charlie’s panophobia or fear of everything is at the root of his holiday gloom:
However, for most Americans, this is a bit extreme. Sure, we have fears, but we handle them, right? Well, maybe not. In fact, there has been some significant movements in the financial sphere to try and act a bit more like “Dr. Lucy” and label people’s fears about their money. And it turns out that chrometophobia, or the literal fear of money, is far more prevalent than many people think. In fact, a 2003 study in the UK found that a general fear of finance affect at least 1 in every 5 people. And this was before the Great Recession and its fallout.
What’s more, just as Charlie Brown’s panophobia prevents him from enjoying the “most wonderful time of the year,” our own financial fears may be crippling our joy far more than we realize.
What the Fear of Money Really Looks Like
Unlike a perpetually fearful Charlie Brown, most people are pretty good at hiding their fear of money – even from themselves. In fact, this fear usually manifests in simple, easy-to-overlook actions. However, these actions, and their implications can add up (negatively) in the end. Therefore, it is important to know what the “fear of money” looks like in a real life way:
Physical Symptoms
Like any legitimate phobia, as defined by the DSM-V, chrometophobia often presents with an immediate anxiety response, including physical symptoms. In the most extreme cases, this presents physically. According to the 2003 UK study, nearly half of all who suffer from this disorder get a rapid heartbeat when dealing with money. 15% of people feel frozen or immobilized by the prospect of finance. In addition, 12% and 11% respectfully feel ill or dizzy.
Inability to Manage Your Money
Aside from the blatant physical responses associated with the fear of money, there are other, more subtle issues to note as well. Because of this phobia, or irrational fear, many sufferers cannot handle changes to their financial situation. This includes changes in jobs and income or even investment plans. As a result, they often put too much trust in other people who may or may not be trustworthy and allow them to manage their finance for them. In extreme cases, those with such an extreme fear of money and change neglect their finances completely.
The Fear of Money Ruins Your Finances
To those of us already engaged in doing so, it is no surprise that regular, measured assessments of your financial position are crucial for long term success. Cindy and Pat, for example, have long used the monthly budget meeting to touch base and check in on their expenses and each other. Most of us on a tight budget also regularly check in on account balances and cleared checks or debit charges. Personally, I manage my finances weekly, always ensuring that the money I plan to go in gets there and the bills that need to go out are on time.
Even if we don’t like what we see, we address the issues in front of us.
On the other hand, financial neglect, whether out of fear or sheer laziness starts off innocently. When your fear of money prevents you from looking at bills, monitoring your account balances, or building a monthly budget, you may be okay for a while if you naturally live below your means. However, you leave the door open for extreme debt and overspending as soon as something changes. Plus, failure to look at bills can easily lead to missed and late payments or overdraft fees.
But there’s more…
Late fees, overspending, and wasted money are one thing, but lack of measured financial management can have extended consequences. From an investment standpoint, relying on someone else to make decisions for you and then failing to monitor the results of those investments may lead you to lose money or fall victim to white collar crime. Still worse, without regular monitoring, you can miss wrong or fraudulent charges to your accounts and, in extreme cases, fall victim to identity theft.
Is this extreme? Absolutely, but that’s the point.
Overcoming the Fear of Money: The Key to Financial Freedom
No matter the physical response, overcoming your fear of your own finances is absolutely critical for survival – literally. If you dive in to deep debt at a young age, it will take years to resurface. Even if you reform, bankruptcy, foreclosure, and defaults all put black marks on your credit that last for up to 10 years.
That’s why, little by little, you need to start to address your financial fears with measured checks on your accounts and a logical plan for moving forward and fixing any issues. Here’s a basic plan to do just that. Start at #1 and work your way through them all:
- Check all account balances once a week – this provides you with a full picture of how much money you have and where.
- Open – and pay – all bills as soon as you get them – this way you don’t have to worry about having the money to pay them.
- Create a budget – start small if that helps, but begin to plan where your money will go before it gets there.
- Get out of debt – with a budget in place, paying down account balances becomes possible.
- Set long-term financial goals – this includes figuring out how to achieve them and includes savings and investments.
Face Your Fears and Move Forward
As you begin to take these steps, pay attention to how you feel and whether or not you struggle with the mechanics of checking balances or paying bills. Especially if you continue to experience physical symptoms, seek help to deal with the psychological and financial aspects of your money management. Ultimately, remember that controlling your fear of money is the only way to dictate the path your finances take. You need to be behind the wheel to guide the ship in the right direction, or so to speak.
At the end of the day, heed Dr. Lucy’s advice and find a label for your fears. Then address them. Your psyche and your wallet will thank you.
