Every day, we make countless money decisions: what to spend, where to invest, which job offer to accept. Yet without a clear compass, these choices can feel disconnected from what truly matters. By tapping into your personal values, you can transform financial planning into a path of purpose and fulfillment.

Understanding Personal Values

Personal values are deeply held guiding principles that shape our perceptions of right and wrong. They influence priorities, behaviors, and aspirations in all areas of life—including your bank account.

Unlike financial goals, which are specific targets such as saving for a home or retirement, values are the underlying motivations that give those goals meaning. When you know what you stand for, you make choices that resonate with who you are.

How Values Influence Financial Choices

Values permeate every facet of money management: your saving habits, spending patterns, risk tolerance, and investment preferences. They serve as the guiding force behind decisions that can improve consistency and long-term satisfaction.

Several factors intersect with your values to shape financial decisions:

• Personality type (risk taker vs. security-oriented)
• Social and cultural norms
• Level of financial literacy
• Past personal and generational experiences

Values in Practice: Current Trends

Recent data underscores the power of values in modern finance. The 2022 Schwab Modern Wealth Survey reveals:

• 73% of Americans say values govern life decisions
• 69% align financial choices with causes they care about
• 91% consider a company’s reputation when investing
• 84% let values guide employment decisions
• 59% would accept a lower salary for value-aligned work

To many Americans, money represents:

Globally, the average annual salary remains under $18,000, and retirement comfort often requires saving ten times one’s income—highlighting the stakes of aligning resources with values.

Discovering Your Core Values

Before embedding values in financial plans, you must uncover them. Begin by reflecting on moments when you felt most energized or dissatisfied. Identify recurring themes:

• People you admire and why
• Environments where you thrive
• Events that angered or disappointed you
• Achievements that filled you with pride

Tools like the Values Card Exercise or guided worksheets provide systematic self-reflection and clarification. These exercises help you articulate a concise list of 5–10 core values—such as security, creativity, or benevolence—that will serve as your decision-making yardstick.

Applying Values to Financial Planning

Once identified, values become a "weeding tool" to prioritize goals. For instance, if sustainability ranks high, you might choose ESG funds; if security is paramount, you lean toward bonds or a conservative portfolio.

While values-driven investing can generate both financial and social returns, be mindful of values-driven investing strategies that may carry unique risks. Misalignment between beliefs and actions often leads to abandonment of plans—eroding both morale and wealth.

Working with a financial advisor who integrates a values exploration during onboarding ensures that your plan remains authentic and motivating over time.

Managing Social and Cultural Influences

Family expectations, peer pressure, and media messages can either reinforce or conflict with your values. Being conscious of these influences allows you to filter advice and marketing that clashes with your core beliefs, maintaining integrity in every transaction.

Building Financial Literacy

Knowledge is the foundation upon which values can be effectively applied. Research by Lusardi and Mitchell confirms that foundational financial literacy skills—budgeting, understanding interest, and evaluating investment trade-offs—lead to better saving and investment behavior.

Improving your literacy through books, courses, or workshops empowers you to execute values-aligned strategies with confidence and clarity.

Practical Steps to Align Values and Finances

Putting theory into practice requires consistent action. Consider these steps:

• Reflect and articulate personal values before setting goals.
• Document values in writing and use them as a checklist for decisions.
• Seek or request values-based guidance when working with advisors.
• Regularly revisit and refine your values as life evolves.

By weaving values into your budget, investment policy, and career choices, you’ll cultivate meaningful and sustainable outcomes that endure through market fluctuations and life changes.

Conclusion

Aligning money with personal values is not a soft, feel-good tactic—it’s a strategy for long-term success. When each financial move resonates with your deepest principles, motivation flourishes, and follow-through becomes effortless.

Remember: your values are more than aspirations—they are the lenses through which you can see, evaluate, and seize opportunities. Use them wisely, and watch your financial journey transform into one of purpose, resilience, and genuine fulfillment.