Understanding the Fear of Money

Navigating the world of finances can often feel like an overwhelming journey, especially for those stepping into the realm of adult responsibilities. Among the various anxieties that come with financial management, a significant one is chrometophobia—the fear of money. This fear, while not frequently discussed, plays a crucial role in how people, ranging from teenagers to adults, perceive and handle their financial matters.

Chrometophobia goes beyond mere apprehension; it’s a deep-seated fear that can obstruct the path to financial independence and well-being. Rooted often in the unknown or misunderstood aspects of money management, this fear can lead to avoidance and financial paralysis. However, understanding and confronting this fear is the first step towards achieving financial freedom and confidence.

Confronting Financial Fears

The journey to overcoming chrometophobia begins with a candid assessment of one’s financial situation. Often, fear stems from a lack of information or misunderstandings about a subject. Therefore, by shedding light on your finances through examining bank statements, credit card bills, loans, and other financial obligations, you can dismantle fears and build a stronger foundation for informed decision-making. This transparency in understanding where you stand financially is crucial in dispelling fears and misconceptions.

  1. Direct Engagement with Finances: Regularly reviewing account balances and statements is vital. Understanding your financial standing, whether comfortable or challenging, provides a clear starting point for improvement.
  2. Financial Reflection: Consider your finances as a roadmap rather than a static picture. Assess whether your current financial habits are leading you toward your goals. If not, it may be time to chart a new course.
  3. Mindset Shift: Recognize that financial health is a journey, not a destination. It involves continuous learning and adaptation rather than a one-time fix.

Embracing Technology for Financial Management

In the digital age, managing finances has become more accessible and efficient, thanks to technological advancements. Embracing these tools can significantly reduce the stress associated with financial planning and tracking.

  1. Budgeting Apps: Numerous apps are available that can streamline the budgeting process. These apps can link to your various accounts, providing a consolidated view of your finances. They not only track spending but also offer insights and suggestions for better money management.
  2. Automated Payments: Autopay can alleviate the anxiety of missing bill payments. By automating regular expenses, you can focus on other aspects of financial planning. Many service providers also offer incentives, like reduced interest rates, for using autopay, adding another layer of benefit.
  3. Alerts and Notifications: Setting up alerts for approaching payment deadlines or reaching spending limits can keep you informed and in control, reducing the likelihood of financial slip-ups.

By incorporating these technological aids into your financial management routine, you can create a more streamlined, less intimidating approach to handling money, thereby reducing fear and building confidence in your financial decisions.

Building Financial Security

Achieving a sense of security in your financial life is a key factor in overcoming the fear of money. This security primarily comes from being prepared for unforeseen circumstances and making wise borrowing decisions.

  1. Establishing an Emergency Fund: One of the most effective ways to combat financial anxiety is by creating an emergency savings fund. This fund acts as a financial buffer, providing peace of mind for unexpected situations like job loss or medical emergencies. Financial experts typically recommend saving at least three to six months’ worth of living expenses. Even small, regular contributions can build a substantial fund over time.
  2. Smart Borrowing Practices: If borrowing is necessary, it should be approached with caution and understanding. Prioritize loans for essential investments, such as education or housing, and avoid high-risk or high-interest borrowing, especially for depreciating assets like cars. When evaluating loan options, consider interest rates, terms, and customer reviews to ensure you’re making a financially sound decision.

Debt Management Strategies

Effectively managing and reducing debt is crucial in overcoming financial fear. A strategic approach to debt can help you regain control of your financial health.

  1. Developing a Repayment Plan: Start by getting a clear picture of all your debts. Prioritize them based on interest rates and balances. Explore options like debt consolidation loans or balance transfer credit cards, but be wary of the risks, such as potentially higher long-term costs or the temptation to accrue more debt.
  2. Seeking Professional Guidance: Consider consulting with nonprofit agencies like Money Fit for personalized debt management advice. These organizations can offer insights into various debt repayment strategies such as debt consolidation without a loan or various relief options, and help you choose the one that best fits your situation.

Setting and Achieving Long-Term Financial Goals

With immediate financial fears addressed, setting long-term goals is the next step in securing a stable financial future.

  1. Visualizing Your Financial Future: Think about where you want to be financially in the next 10, 20, or 30 years. Whether it’s owning a home, saving for retirement, or funding personal dreams like traveling, having clear financial goals is essential.
  2. Strategic Financial Planning: Once you have your goals, create a plan to achieve them. This might include regular contributions to retirement accounts like 401(k)s or IRAs, investing in the stock market, or other savings strategies. The key is to start early and remain consistent, as this approach helps in accumulating wealth over time and reduces the need to incur debt for future expenses.

Maintaining Financial Vigilance

Consistent monitoring and adjustment of your financial habits are essential to avoid falling back into negative patterns.

  1. Regular Financial Reviews: Schedule routine check-ins with your finances. Whether it’s a weekly overview or a monthly deep-dive, these sessions should include examining account statements, tracking spending, and evaluating progress toward your financial goals.
  2. Adaptive Strategies: If you notice any slippage or find your current methods ineffective, don’t hesitate to adapt. Introducing new tools, changing your budgeting technique, or even seeking advice can rejuvenate your approach. Remember, financial management is an evolving process that should align with your changing life circumstances.

Seeking Professional Help When Needed

There’s no shame in seeking expert advice when it comes to finances. In fact, professional guidance can often be the key to unlocking your financial potential.

  1. Consulting with Financial Experts: If you’re struggling with specific aspects of your finances, such as debt reduction, budgeting, or planning for the future, consider consulting with a financial advisor or a nonprofit credit counselor. These professionals can provide personalized advice and help you develop a comprehensive plan to meet your financial objectives.
  2. Mental Health and Financial Well-being: If financial worries are causing significant stress or anxiety, it might be helpful to talk to a mental health professional. Financial therapists specialize in the intersection of money and emotional well-being and can offer strategies to cope with and overcome deep-rooted financial fears.

Knowledge as the Cornerstone of Financial Confidence

In conclusion, conquering your fear of money is a journey that begins with education and understanding. The more you know about your finances, the less intimidating they become. By incorporating healthy financial habits, staying informed, and seeking help when needed, you can build a strong foundation for financial confidence and freedom.

Remember, every step you take towards understanding and managing your money is a step away from fear and a step towards a more secure financial future. Embrace the journey with patience and persistence, and you’ll find that your relationship with money becomes more positive and empowering.

About the Author

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).