Know Your Money with Bronwyn Waner and Craig Finch
Know Your Money with Bronwyn Waner and Craig Finch
68. The Marshmallow Test: Mastering the Art of Financial Patience
Ever wonder what a marshmallow could possibly teach us about financial discipline? Prepare to be enlightened as we zero in on the psychology of money management—insights guaranteed to transform your financial strategies. Craig and I, your hosts, dive headfirst into the world of delayed gratification, revealing how the choices we make, even as children, have the power to shape our adult approach to saving and spending. This isn't just about resisting sweet treats; it's a deep dive into our financial personalities, with a sprinkle of nostalgia and a healthy dose of self-awareness. Whether you're an impulsive spender or a master of patience, our conversation will offer you new perspectives on achieving your monetary goals.
Join us as we reflect candidly on our own journeys from marshmallow gobblers to thoughtful savers. We don't just theorize; we share personal anecdotes and challenge ourselves—and you—to reconsider our relationship with money. By the end of this episode, you'll be equipped with the wisdom to tweak your saving habits for the better, no matter which type of 'marshmallow' you are. So, settle in for an episode that's more satisfying than a handful of marshmallows, and certainly more profitable in the long run. And who knows? You might just find the key to unlocking a future where your financial patience pays off in ways you never imagined.
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Welcome to Know your Money, where we will explore our relationship with money and how the psychology of it impacts our financial decisions, as everyone thinks about money differently. In our podcast, we'll be presenting a variety of financial topics in an easy to understand way, which we hope will assist you with managing your money. Hello everybody, welcome to Know your Money. Craig Warren, how are you guys?
Speaker 2:Warren looking good.
Speaker 3:Warren looking good. Thanks, craig, you look pretty good yourself yeah, you look good.
Speaker 1:I feel like I'll never say anyone looks good, sorry.
Speaker 3:You know Craig's getting in shape. Man, he's got this big walk coming up. He's looking well.
Speaker 2:It's because the TV's coming up, not the walk, but you can't eat marshmallows. Is that what we're talking about?
Speaker 1:today yes.
Speaker 3:Diverse it quickly there, buddy.
Speaker 1:Very funny topic but if you haven't heard about it you can just go and Google it. But there is this marshmallow test that they did I don't know when they did, but on little kids and they between different ages. And what they do is they make a little kid sit in a room and they put one marshmallow on a table and they say to the kid okay, I'm coming back now. If you don't eat this marshmallow, when I come back I'll give you two. Some kids they made wait for five minutes. Some kids they made wait for like 15 minutes. And you just watch these videos of how, like, these kids are watching this marshmallow and they're like having a war with themselves inside, that they don't want to eat it. Some of them cave in and they eat the marshmallow, others don't, and then they get the reward and they get the two marshmallows.
Speaker 1:And I was thinking about that so much the other day and I thought to myself, like what? What would I have done? You know, like would I have eaten the first marshmallow or the second or waited for the second one? And how I think you can kind of tell is what do you do with your money? Like, can you wait or don't you Like? What kind of marshmallow are you Like? Are you the gobbler that straight away, or are you the waiting later no-transcript To be able to like sort of figure it out as good, and do you wait too long, or don't you? Yeah, you know.
Speaker 3:Yeah, I wish I'd. I almost want to do this with the boy when he's old enough.
Speaker 1:I think they said like four or five, just Google what it is, yeah.
Speaker 3:No, I think I will do it with him Because I wonder, just on a side note there, I wonder how much that is telling of what kind of person you are very young. So they did test that out and they do see further on like so do they follow them through life? Yes, wow.
Speaker 1:And that those kids that could wait like sort of had a better outcome in life. They didn't need instant gratification, they could wait for things.
Speaker 3:They were more patient in general.
Speaker 1:Yes and yes, that is what that marshmallow tested. But the point of today is like, if you want, you can change, like you can be the little kid that waits, but as the adults. So do you want to go and spend that 200 Rand on a meal every week, or would you rather be the kid that waits with the marshmallow and save that 200 Rand every week and in five years' time have some money? So it's like a way of changing your saving perspective.
Speaker 2:Thinking about that, and I think you may have started differently. You may be the kid who gobbled the first marshmallow.
Speaker 1:Me definitely. I would have gobbled it, I'm sure.
Speaker 2:And then, as we've progressed and we've realized what we should do, you might have changed, and that's a good thing.
Speaker 1:Do you think you would have eaten it?
Speaker 2:I reckon I would have eaten it in the early days.
Speaker 3:yes, A hundred percent, I would have eaten it, no doubt. But now.
Speaker 2:Definitely I would wait because I know the long term it's not long long term. It can be a couple of years, end of the year type of thing where when you receive that reward it's going to be much more satisfying. Exactly Instant gratification, the instant coffee that you're going to buy, a cappuccino on the way to work, the 40 rand you spend there. If you keep adding those 40 rands up every week and put into a monthly debit order, they can go into a longer term goal. That's going to be a great fun thing, not a boring thing like maybe retirement seems, but a fun holiday or a fun purchase that is.
Speaker 1:It's far better than getting that coffee right now and then you still can't get the fun thing you wanted in at the end of the year yeah, and it's not to say that it's it's always got to be the coffee, like we, like we've said with the ramat seti thing, like where, um, your rich life? Like, if getting a coffee every day is your thing, what is the other thing that you can give up on? So, um, you know, is it the takeouts, is it the I don't know, getting your nails done every week? Can it be rather twice a?
Speaker 3:month.
Speaker 1:People do that yeah, I think so.
Speaker 3:Oh, yes oh my gosh. You know that's a lot of money you know?
Speaker 1:so it's just the hairdresser every week exactly it's finding that. It's finding that one little thing that you can change. And and what I find so funny is like everyone watching as adults they're like what would they do? But you literally can put that into practice now like for yourself, yeah, yeah. So think of the marshmallow when you want to do something.
Speaker 3:And I think, Craig, you said like you can financially do something better as well. But I think you can also say to yourself well, I'm proud of my discipline for sticking to it. Yeah, exactly, you know, it can be a nice thing at the end where you go, wow, okay. So instead of spending that, whatever money I've saved up and I've actually bought a car I've always wanted. It's taken me eight years, but I've done it, I've got that car. You can be incredibly proud of yourself to know that you didn't have to do anything different.
Speaker 1:All you had to do was just wait yeah, yeah, absolutely and also it's like, um, if you had to put it down to a purchase, it's like buying the cheap version of this because you've got the money now. The money now, yeah, instead of just waiting just a little bit longer so that you can buy the more expensive brand which is going to last longer.
Speaker 3:Yeah, well, that's that whole fallacy, isn't it? It's I'll get the cheap one and then you buy four of those and at the same time you would have bought the good ones.
Speaker 1:Yeah and that's totally just the marshmallow. It's because you don't have the patience to wait. Which, like all of us watching, can say which one you think you are? Can you do the marshmallow test to adults without them knowing? I suppose you could, but I don't think you could do it with a marshmallow.
Speaker 3:No, we're not on marshmallow, it's something else. I'm gonna try it on cursed. Yeah, you can have this dress now, or if you wait a month, I'll let you get two dresses yeah.
Speaker 2:Or shoes to go with the dress, or like a whole outfit. Yeah.
Speaker 1:Something that like. So why that one? I think like it's got to be a dress that's like on sale right now and there'll be no more of them.
Speaker 3:Right right, right right. So it's like it has to be now. Yeah.
Speaker 1:Yeah, so it has to be right now to have that one dress, or you can go buy two dresses from here, kind of thing, yeah, and just sort of those things. And as adults we are more clearer and you're like no man, of course I'll wait and rather get the two dresses, because I think straight.
Speaker 3:I think a lot of people don't though.
Speaker 1:But if you think about it, when it comes to savings, like people are not doing that, they're not waiting.
Speaker 2:And the danger is your credit card, because your credit card gives you instant gratification, and that's the problem.
Speaker 3:Those pesky credit cards.
Speaker 1:So please write and let us know what marshmallow test you did and what the outcome was. We'd love to hear from you.
Speaker 3:That would be good.
Speaker 2:Great Thanks Brian. Thanks Warren.
Speaker 3:Cheers guys, have a good week.
Speaker 2:Thank you for listening. If you have enjoyed this podcast or would like to subscribe, please visit our website wwwgrowthfpcoza. The information we have provided in this podcast is our personal opinion. For more detailed information, please discuss your financial situation with a financial planner.