More Knowledgeable Others

Psychologist Lev Vygotsky, renowned for his work in human development, believed that individuals internalize skills we see from those around us. He concluded that humans are strongly influenced by those he called More Knowledgeable Others. Knowledgeable others could range from teachers to parents or peers or anyone who you may believe to have a more sophisticated understanding of particular information.

It is important to identify who your More Knowledgeable Others are when thinking about financial literacy because people tend to pick up financial habits from these individuals as well. These habits can be positive or negative; however, the act of doing this is a huge problem in our society. This is because most people are not qualified to provide personal finance advice as a majority of people have poor money management skills, yet are still considered More Knowledgeable Others. The dangers lie in the fact that others may pick up these individuals' bad habits as they may believe that they are beneficial since they trust the person whose habit it was.

Before internalizing the behaviors, especially in regards to finances, of others, it is imperative to determine that they qualify as a More Knowledgeable Other. While many influencers may appear to be qualified, oftentimes they endorse habits that are unhealthy, to boost their platform. Additionally, advertisers' goal is to create characters that look as though they are more knowledgeable, but instead fuel unhealthy spending habits so that they can make a profit. Therefore, as a society, we need to realize that we cannot trust all the people we see online, no matter how knowledgeable they may seem. There is a good chance that these actors may have their own agenda, thus making it even more necessary to be careful when choosing your More Knowledgeable Others.

The key to finding reliable More Knowledgeable Others is to first determine what your personal beliefs are as well as your desired lifestyle. Then you must use your money in a way that helps you achieve that lifestyle and in doing so, choose people who align with these goals. Examples of effective financial mentors include those who are

1. Trusted or researched

2. Friend or family member with expertise in personal finance

3. Author or celebrity who shares money management lessons

4. Business leader/successful investor

5. Personal finance expert

The most important part in finding a personal finance mentor is that you ensure that they are qualified enough to give you substantial advice. Furthermore, you need to make sure that they are living the lifestyle you want to achieve, share your beliefs, their information is accessible to you, and they will help you make positive financial decisions. With all of these factors in mind, you will be more than capable of finding your More Knowledgeable Other!