Combating Money Shame by Building Better Financial Relationships

December 8, 2023|0 min read

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Organizations need to understand the context in which they fit into a consumer’s life in order to best serve them. People’s relationship with money is far deeper than day-to-day financial management. Tammy Lally, TED Speaker, Money Coach, and Author of Money Detox, explains how adults deal with money is based on subconscious belief systems learned from childhood to today.

We tell ourselves we should know how to save, invest, and budget. What’s worse is we think everyone else knows how to manage their money and we're alone in this struggle, shared Lally in her keynote at Money Experience Summit 2023. She refers to this concept as money shame.

“The intensely painful feeling or experience of believing that you're flawed and therefore unworthy of love and belonging. And it's based on your bank account balance, your net worth, your debts, the home you live in, the car you drive, your job titles, your status. And I believe that we all have it. Whether you earn $10,000 a year or $10 million. And it's because we give money power,” Lally explained.

Financial service providers can help empower consumers to build a better relationship with their money. Here are a few ways financial institutions can help consumers take control of their financial lives:

Empower visibility. With multiple accounts spread across different financial providers, consumers are often left with a fragmented view of their financial lives. By enabling consumers to connect their accounts, from checking and savings to investments and retirement, financial institutions can empower customers with a 360-degree view of their finances so they can better understand and manage their financial life.

Enable action. Budgeting and PFM tools shouldn’t just be a reminder of how far behind consumers may be on their financial goals. Financial institutions should focus on balancing reminders with reassurance and support to create a better experience.

Rinse and repeat. Building good habits takes time. Changing behavior is hard and without actionable guidance, consumers often don’t know where to start. Financial institutions can help customers build good money habits by consistently delivering insights in a predictable and repeatable manner.