Financial behaviors

Financial behaviors

by Lucian Nedelcu – Expert accountant

A poll made by Standard & Poor’s placed Romania on the last place in the European Union regarding the financial education, with a 22% population literacy rate, well behind the leaders of this ranking represented by the Nordic countries – Sweden, Denmark, Norway, with a rate of 71%, followed by the UK with 67%, Germany and the Netherlands with 66% and Finland with 63%.

In Europe, from Eastern Europe, our neighbors are ahead of us: Hungary 54%, Ukraine 40%, Serbia 38%, Bulgaria 35%, Moldova 27%, while Romania ranked 123th globally at the financial literacy rate (with 22% of the total population).

What takes us to this disastrous scoring, affecting our lives and being reflected in our personality, activities and business, is the FINANCIAL BEHAVIOR.

What is a financial behavior? Simple and precise, the financial behavior represents somebody’s way of acting from a financial point of view.

Surely, we all want to know our financial behavior. But first of all, we should be aware about the financial behaviors are their role in our lives.

Types of financial behaviors:

Starting from the classification made by T. Harv Eker, motivational speaker known for his theories of wealth and motivation, author of the book “Secrets of the Millionaire Mind”, the typologies of financial behaviors can be presented as follows:

  1. THE HUMANITARIAN / guilty / charitable / generous / altruist
  • Tries not to have too much money because he thinks that this is associated with a negative power and he is keeping away from this in order not to divert him from his spiritual mission.
  • Believes that money threaten people’s deep values.
  1. THE DISCREET / avoidant / solitary
  • Avoids everyday tasks that involve administering and having contact with money.
  • Can feel anxious or unskilled in administering money. Sometimes he doesn’t know how much money he has.
  1. THE SQUANDERER / spender / waster
  • Uses the money to buy anything, even if he doesn’t need those things.
  • Makes gifts to friends and surprises all with the personal expenses.
  • It is hard for him to save money.
  1. THE ECONOMICAL / miser / grabber / monopolizer / hoarder
  • Saves money, often checks the accounts and enjoys how much money he has saved, takes advantages of super-super promotions.
  • Sometimes any risk-taking move creates him the fear of running out money.
  1. THE CALCULATED / wiser / efficient
  • Consumes less than produces or obtains. This category includes those who plan to develop financially, personally etc. Part of the money are invested in his knowledge, experiences, abilities, which in time gives him the opportunity to return more value and also to gain more.
  • Savings gives him the opportunity to get involved only in those transactions or jobs that are worth.

It is clear that each of us is a combination of financial behaviors, but one of them prevails.

Now, you’re probably wondering how you can move from one category to another. At first glance, you might think that if you earn more money, you could automatically fall into another category. But we can assure you that this will not be the case, no matter how much your income increases, your financial habits will keep you in the same category. So, what you have to do is change your habits and with some financial education you can get quite fast among the CALCULATED, this becoming your second nature.

Financial behavior defines our personality and is reflected to other aspects of our lives, family, relationships with others, activities or business.

Let us imagine how life might be, how much we could do, how much we could offer, how much we could plan for the future, how confident and respected we could feel if we gain as much as our whole potential helped by a correct financial behavior. And all of these depends only on us!



Lucian Nedelcu
Lucian Nedelcu, Exprom General Manager, has over 25 years of experience in financial, accounting and federal tax consultancy. In formal training and current activity, he is qualified as a tax consultant, accounting expert, with tasks including financial controling, internal and financial audit, as well as supervising all Exprom activity.