Yes, Financial Avoidance is a Thing. Here’s How to Avoid It

As you might guess, “financial avoidance” means avoiding your finances. This avoidance can manifest in many ways, such as:

• Refusing to start a budget
• Never checking in on your credit card statement
• Steering clear of opening your banking app

Judson Brewer, a psychiatrist and doctor who focuses on “the science of self-mastery,” calls these behaviors “money avoidance.”¹^,² But don’t worry: Financial avoidance doesn’t mean you’re abnormal – quite the opposite.

Financial avoidance: Why do we do it?

Brewer says that avoidant tendencies stem from our survival instincts, which prompt us to avoid pain and seek out pleasure. Those instincts helped us find food (and remember where we found it) and kept us away from scary things, like predators that could hurt us.¹

Unfortunately for modern-day humans, avoiding your bank account app isn’t the same as avoiding a saber-toothed tiger. Instead of keeping us from danger, money avoidance can increase the threat to our finances.

Case in point: According to a recent survey conducted by Chime, unexpected bank fees affected 20% of Americans last year. That figure includes overdraft fees, which can cost as much as $35 per transaction.³

The survey also found that 29% of consumers pay monthly service and maintenance fees costing more than $18 on average – costs that could be avoided by choosing a checking account without certain fees.

While money avoidance is not the only factor behind these trends, ignoring financial problems certainly doesn’t help improve them.

The good news? Financial avoidance isn’t inevitable. While learning new habits is hard, with commitment and perseverance, you can do it.

Here are our top tips for facing your financial situation head-on – even when it feels like battling a wild animal.

Check in with your emotions

The first step toward any change is an awareness of how things could be different. That awareness can eventually motivate a decision to shift our habits.

For example, start by noticing how you feel when you think about checking your bank account – or when your card gets declined at point-of-sale.

According to our recent survey, more than one-third of people hit by an unexpected bank fee in the last year felt stressed when they recalled it, and 10% said they felt depressed.

Even if both situations feel bad, an overdraft fee might feel worse – and checking your account often could help you avoid that feeling and fees in the future.

Set a goal

If you’ve ever quit smoking or started a diet, you already know that changing your behaviors is hard work. Your objective can be easier to accomplish if you set an achievable (but attractive) goal.

Even if you have an idea of what you might want, setting successful financial goals can come down to precision. For instance, using the SMART framework requires you to be specific about what you want to achieve (S) and ensure that your goal is measurable (M), achievable (A), relevant (R), and timely (T).

Finding an accountability buddy can also help you stick to the work it will take to achieve your goals.

Automate good habits

Modern technology makes it possible to maintain financial progress, even if you’re not looking too hard. For instance, setting up an automatic monthly transfer to your savings account can help you build an emergency fund with little effort.

Money makes us much more emotional than we may realize, but learning how our minds work can help ease even the most turbulent financial relationship.

Next up: learn about financial fawning and how to set the boundaries you need to thrive.