Remember how we did a study on financial literacy and confidence? Which led to this platform becoming what it is today? Well, the research also revealed that most of us fall into one of four personality types when it comes to financial literacy.
Based on a self-assessment of financial knowledge and actual literacy score, the participants of the study were defined under four areas. There’s the Hidden Guru, who has a low self-assessment and a high literacy score, the Savvy Wizardess, who has a high self-assessment and a high literacy score, the Free Spirit, who has a low self-assessment and a low literacy score, and the Bold Magician who has a high self-assessment and a low literacy score. Within the groups, we noticed logical patterns based on socioeconomic factors as well as preferences and interests. For example, the older the participant was, the more financially literate they were. And the fewer assets they had, the less confident they became. At Stnce, we believe the first step toward taking financial ownership comes from identifying strengths and weaknesses. So, go ahead and see if you fit any of the descriptions below.
The Hidden Guru:
They are more likely to be dissatisfied with their financial knowledge and interested in learning about the economic landscape, as well as sophisticated finance-related topics. This includes (non-)registered investments, credit scores, emergency funds, will and inheritance, macroeconomics, taxes, and prime rates. They are also more likely to watch online news sources.
Hidden Guru personalities are life-long learners, always on the lookout for something to add to their repertoire of knowledge, searching for ways to better themselves. While they may be perceived as hesitant, doubtful, or indecisive, Hidden Gurus have a passion that can reveal their brilliance in an instant. Though they have potential, the fear of being wrong holds them back, but when they are around like-minded people, they feel inspired to assert their prowess. This is not to say they are eager to learn everything all at once. Hidden Gurus enjoy taking in information, one topic at a time – to understand all there is to know about a subject. For a Hidden Guru, being able to teach others is the pinnacle of learning success.
The Savvy Wizardess:
They are more likely to be satisfied with their financial knowledge and interested in reading about recent economic trends, such as robo-advisors and macroeconomics. They are also more likely to receive financial information from online news sources and print newspapers, use Twitter and LinkedIn, and watch CBC.
Savvy Wizardess personalities are resourceful and perceptive – often being the go-to person in a group for information and advice. They are incredibly logical, making them the ultimate problem solvers. However, they are also prone to doubting their accomplishments as they feel there’s more to the puzzle than they can comprehend. Overcoming this can help them take on more significant challenges, in work and in their personal life. Savvy Wizardesses love experiencing new things but rather than learn and assess the ideas on their own, they’d prefer to use others as a sounding board. This way of thinking may make communicating with them seem strenuous, but in reality no one is more capable of making a complicated topic, simple.
The Free Spirit:
They are more likely to be dissatisfied with their financial knowledge and interested in learning about all financial topics. This includes credit cards, budgeting, saving, credit scores, loans, mortgages, and personal and property insurance. They are also more likely to use social media (particularly Facebook), receive financial information from social media, watch Sci-Fi and Fantasy dramas, and avoid news networks and talk shows.
Free Spirit personalities are often the ones who break the mould, upset traditional expectations and push the limits of social convention. They’re aspirational, eager, and enthusiastic but can find it difficult to hear criticism, especially when it implies they need to change the way they’ve been doing things. Free Spirits approach planning for the future like it’s their biggest enemy. It’s no small task for them to break down a goal into bite-sized steps. They would rather stay within their comfort zone and make decisions based on intention, rather than try to understand complicated programs or sophisticated topics. For a Free Spirit, developing and maintaining a new habit may not come naturally but rest assured, over time it will become their one of their greatest strengths.
The Bold Magician:
They are more likely to be satisfied with their financial knowledge but are less likely to be interested or engaged in learning about financial topics in general. They are also more likely to use LinkedIn, watch morning and daytime talk shows (particularly Cityline, BT, and CTV Morning Live), as well as tune into City News and Global News.
Bold Magician personalities are natural leaders, full of energy and charm. Their magnetic presence and unmissable confidence draw people toward them, making them the motivational speaker of the group. They enjoy inspiring others to improve themselves and will never hesitate to express their opinion or impart their wisdom. However, this does mean their advice should be taken with a grain of salt. Because communication comes so easy for them, Bold Magicians rarely encounter debate or push back. As a result, their ideas tend to stay the same over an extended period of time. When this happens, it’s essential for Bold Magicians to pull back and assess whether they need some motivation to set bigger goals. And if so, they shouldn’t worry, they’ve got the best personality for the task.
So, next time you’re at brunch, check out if you’re hanging out with a type who can jibe with you on finance. You never know, you might be a Free Spirit who can share a thing or two with a Bold Magician or a Hidden Guru who can bounce ideas off a Savvy Wizardess. At Stnce, we think best friends can become even bestier over a conversation about how personal finance affects their lives.
Written by Cara Lau for Stnce. Illustration by Yana Vorontsov. We make taking financial ownership approachable and relatable.