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What is your personal financial code of conduct? Whether you’re consciously aware of it or not, chances are you have an internal set of standards and taboos that guide the way you handle money.
Many organizations, professions, and businesses have codes of conduct. These include “red line” behaviors, the serious violations that could end someone’s employment or disqualify them from practicing. In reviewing my company’s code of conduct recently, I realized that such red line behaviors are also damaging when they involve personal finances. Here are some examples.
1. Covering up a mistake. We assume staff members, being human, will sometimes make mistakes. It is hiding or failing to own a mistake that violates our code of conduct. The same is true with money mistakes. For example, a loss from a speculative investment can be an expensive lesson learned. Or, if you pretend it never happened, it can be the first in a spiral of bad investment choices that lead to financial ruin.
2. Breaking agreements. Trust is broken and the integrity of the business is damaged if co-workers and employers cannot rely on someone to do what they say they will do. In the same way, breaking financial commitments—not paying bills, defaulting on loans, or failing to honor contracts—directly undermines trust and credibility. Financial trust is essential in relationships with lenders, business partners, and family members. Violating it can lead to long-term financial instability.
3. Blaming others and making excuses. It damages relationships when someone blames financial mistakes on other people or on external factors like the economy or unforeseen circumstances. Even more, blaming harms the person who refuses to take personal responsibility. It prevents them from learning from their mistakes, addressing the deeper emotional causes of their financial issues, and beginning to change their behavior .
4. Chronically using dishonest, insincere, or manipulative communication. Dishonesty about financial behaviors or manipulative tactics in financial negotiations foster conflict and mistrust whether they are used with co-workers, clients, business partners, or family members. The result can be lasting financial unease and uncertainty.
5. Having an attitude that certain tasks are beneath you. In an office, these might be getting coffee for a co-worker, cleaning, or doing routine clerical chores. In personal finances, these might include neglecting mundane tasks like tracking expenses, filing taxes on time, or taking care of routine maintenance. Or someone might refuse to take an entry-level or unglamorous job that could be essential in the short term to pay the bills. All of these can contribute to chronic poor financial health.
6. Wasting time and company resources. Employees who overspend, fail to take care of furnishings and equipment, or misuse work time are harming a business’s bottom line. Similar harm to an individual’s or family’s financial health can result from behaviors like aimless spending, routinely incurring late fees, paying for unused memberships or subscriptions, or being careless with belongings.
7. Failing to nurture and practice emotional intelligence (EQ). Signs of low EQ include difficulty recognizing emotions in yourself and others, a lack of empathy, poor relationships, difficulty handling criticism, low self-awareness, poor conflict resolution skills, inability to manage stress, and rigid thinking and behavior. Just as EQ is vital for maintaining a balanced and harmonious work environment, it is crucial for resolving emotional issues that lead to destructive money behaviors in someone’s personal life.
Professional codes of conduct are based on fundamental values like integrity, responsibility, trust, and continuous improvement. These are foundational to professional success. Identifying your own code of conduct around money can help you align your values with your money management and support your personal and financial success.
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