A money expert says thinking you're bad at finance is a 'self-fulfilling prophecy.' Here are 3 things to do to change that

"People are often bad with money because they assume they are bad with money. That's the view of Abi Foster, an accountant, financial educator, and author of "The Money Manual," based in the UK. She told Business Insider she often calls out friends who say they're not good with their finances. "They convince themselves, and it becomes like a self-fulfilling prophecy," Foster said. She listed three things people can do to change that."

"Foster said the language we use when talking about money makes all the difference to our spending habits. "Young people pick up the vocab and the emotion that their families have, and so their minds are set from such a young age," she said, adding that often they end up "fearing money." Foster learned about finance through her training to become an accountant, but said you don't need certain training to understand money. Before jumping into investing, you should even just start by downloading some trading apps and having a look at how they work, Foster said."

"Holding all of your money in a checking account is "literally handing money over to banks," she said. Foster said your savings account should have enough to cover three months of living expenses, but no more than 12. When it's sitting in a bank, you're wasting your money because inflation will eat into its value, she said. Foster said people could invest in stocks related to fields they are interested in. She gave the example of someone who is interested in Formula One investing in a stock like Ferrari. For the long term, Foster recommended people look at index funds,"

Many people assume they are bad with money, which can become a self-fulfilling prophecy. Language about money influences spending habits and can instill fear from a young age. Replacing defeatist money vocabulary can change mindset and behavior. Savings should cover three to twelve months of living expenses rather than all funds sitting in a bank, because inflation erodes cash value. Beginners can learn investing by exploring trading apps and examining how markets work. Investing in familiar industries or long-term index funds can align interests with portfolios and offer diversified growth over time.

Read at Business Insider