Financial essentials
Ready, set, goals: How a growth mindset can help you reach your financial goals
Achieving financial goals isn't just about having the right strategy—it's about having the right mindset.
Does your mindset power your actions?
We live in a goal-obsessed culture. Seven in ten Americans said they planned to set personal goals according to a recent poll, with the most common objectives around health and finances.1
Whether you’re saving for retirement, building an emergency fund, or tackling debt, financial goals can help you plan for your money needs. But setting a target is easier than achieving it. There are a variety of methods to
Financial essentials
Money psychology: Beyond the numbers
In this short video you can explore how emotions and habits shape money choices - and how to align them with your goals.
Hi, I'm Chris with TIAA, a senior financial consultant.
When it comes to money, it's easy to think it'sall about the numbers,
what you earn, spend, save, and invest.But here's the truth.
Our emotions play a role in every financialdecision we make.
Think about it. Ever felt a rush of excitement after a big
purchase or maybe anxiety when checking your bank account?
That's money psychology at work.
Our decisions aren't just logical, they'reemotional.
Today we're breaking down four key areas tounderstanding your money mindset.
First, understanding your nature.
Are you naturally a spender or a saver?
Your personality shapes your financial habits.
Second, understand your responses.
How do you react when the market drops or whenan unexpected expense hits?
Your emotions drive your actions.Third, gaining confidence.
Financial confidence isn't just about havingmore money,
it's about trusting your decisions, eventhrough tough times.
Fourth, doing what's best for you.
Finally, it's about making choices that alignwith your goals,
not just following the crowd.
The secret is self-awareness.
When you understand why you feel a certain wayabout money,
you can make better choices, choices that leadto financial security and peace of mind.
Want to master your money mindset?
Start by tuning in to your thoughts andfeelings around money.
And remember, financial confidence starts withknowing yourself.
Want a deeper dive?
Dive deeper into money psychology with our 30 minute webinar available on-demand. Watch anytime day or night.
The right mindset keeps you moving
Psychologist Carol Dweck’s research2 on the growth mindset is a good place to start. She divides people into two “mindsets,” or ways of thinking: growth and fixed. If you have a growth mindset, you believe you have the ability to change yourself—you think that if you try hard and keep practicing, you’ll eventually improve enough to meet your goal. If you have a fixed mindset, you think your abilities are set in stone—you’re either talented or not, and every failure proves your point. A growth mindset says, “I can learn to manage my money better.” A fixed mindset says, “I’m bad with money.”
Seven in ten Americans said they planned to set personal goals.1
Developing a growth mindset
The first step is to figure out your mindset. Think about a specific money issue you’ve had. How did you respond to it? If you notice that you’re blaming yourself, thinking you’re never going to succeed and wanting to avoid challenges, you may have a fixed mindset. But fear not—you’ve just taken the first step towards change. Here are some more ideas.
- Picture your finish line. Visualization isn’t just for athletes. Research shows your brain reacts almost the same way to vividly imagining success as it does to actually experiencing it. Think about what financial security looks like for you—maybe it’s retiring debt-free, traveling comfortably, or helping put a child or grandchild through college. Keep reminders visible: a
progress tracker , a meaningful photo, or a note to yourself about why the goal matters. Over time, picturing yourself achieving your goal can help you believe it’s possible. - Stay the course, even when it’s hard. Remind yourself that falling short of your goals isn’t a failure—you can always make adjustments. There may be times you drift from your plan. The important part is returning to it—and learning from the detour. Reaching financial goals is less about perfection and more about persistence. Consider regular check-ins, whether with yourself, a trusted friend, or a financial professional who can help provide accountability and fresh perspective. At first it may seem difficult, but the more times you try, for example, not pressing “complete purchase” on that cute pair of jeans, the more you begin to see that you can rein in your spending.
- Embrace the power of “yet.” In Dweck’s 2014 Ted Talk3 she describes a school in Chicago that replaced a failing grade with a “Not yet.” This simple reframing told students that they weren’t stuck going nowhere. Instead, it pointed them towards the future, telling them they could succeed someday—they just hadn’t done so yet. Not on track to hit your retirement goals? You’re not failing, you just haven’t figured out the right saving plan—yet. This small shift opens a path to success and can help you keep going, even when facing challenges.
Fixed mindset |
Growth mindset |
I’m bad with money. |
I can learn to manage my money better. |
I missed my savings goal. I did the most I could, so I guess this is just how it is. |
I missed my savings goal, but I can learn from my mistakes and reach my goal next year. |
I’d like to stop making impulse purchases, but it’s just too hard. |
It’s hard to avoid impulse purchases, but I can do it if I try. |
My sister is great with money. Too bad I’m not like her.
|
My sister is great with money. I’m going to ask her for some tips. |
Making it your own
Next time you’re thinking about your financial goals, whether it’s during a formal check-in or just a passing thought during your day-to-day, see if you can notice when a fixed mindset might be creeping in. Then try and reframe your thought using one of the ideas above. You can even try it now.
- Are you on track with your savings target? If not, picture your finish line. What would it look and feel like to know you’re consistently reaching your savings goals?
- Have you reduced your debt this year? If not, don’t give up. Perhaps you make a small payment now, and remember that reaching goals is about progress, not perfection.
- Is your spending aligned with your priorities? If your answer is no, try out this thought: My spending isn’t in line with my priorities—yet.
Developing a growth mindset can help set you up for long-term success, making it easier for you to feel confident about your financial goals both now and in the future. As you embark on developing a growth mindset, consider how small changes in perspective can shift how you view potential obstacles.
Let us help you plan for retirement.
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Guidance that’s tailored to you
Retirement Journey Planner can help you save, invest and protect your income in retirement.
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1Gallup, January 5, 2023,
2National Library of Medicine, February 2019,
3TED, November 2014,
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.