Recent research by Fidelity shows that “everyone’s unique personality traits help them navigate the world in different ways” and that this is also true for money and investing decisions.
For the research project, Fidelity created a Money Personality Quiz based on the Five-Factor Model of Personality (also known as the “Big Five”), described in the article as the gold standard theoretical model in personality research that measures the following personality traits:
- Openness
- Conscientiousness
- Extraversion
- Agreeableness
- Neuroticism
The Money Personality Quiz is a two-minute questionnaire in which respondents identify their thoughts, feelings and behaviors related to money and investing decisions. Participants are placed into one of 12 personality types, and “superpowers” are identified for each personality type. The article notes that knowing these superpowers “can help you make the most of your natural strengths, while avoiding the inevitable weaknesses that often blindside investors.”
The graphic below depicts the 12 money personalities:
Among the 24,000 respondents in the study, the Benefactor —who frequently puts others before themselves by supporting family and friends and donating to favorite causes—was reported as the most prevalent personality type with superpowers that include planning and saving. Planners are the second most common type (they prefer to keep their assets organized), and Optimists emerged as the third most common type.
The article offers comments from Andy Reed, Ph.D, Fidelity’s behavioral economics research lead, who notes that someone’s Money Personality doesn’t necessarily define them, nor does it have to dictate the actions they take. When faced with making “meaningful financial decisions,” Reed advises taking a moment of reflection: “Pause and think about a decision before you act,” he says, to ensure that “your deep-seated personality traits don’t prompt an unproductive knee-jerk reaction.”
