Unlocking the Power of Money Scripts: Understanding Your Emotional Connection to Money

Money scripts are the subconscious, emotional connections that drive our financial decisions. There are four main money scripts that can accurately predict the financial decisions one will make. These scripts are often developed during childhood and largely go unchanged throughout life but understanding them can help people live happier and more financially sound lives.

The first money script is Money Avoidance. This script is characterized by negative associations with money, such as fear, anxiety, disgust, and anger. Money avoidance often coincides with the idea that wealthy people are greedy or corrupt, and that it is more noble to live with less money. On the other hand, wealth is seen as a measure of self-worth. This inherent conflict can lead to financial self-sabotage, such as overspending and needlessly giving away money. It can also present itself as not opening bills and statements, compulsive spending, extreme apprehension around risk, and hoarding. Money avoidance can be helped by setting up systems to automatically save and control spending and by recognizing the habits that feed into self-sabotaging behavior.

Another money script is Money Worship/Focus. This script is characterized by the belief that money is happiness, and that money solves all problems. The flaw in this emotional connection to money is that the happiness from getting money wears off quickly, so one can never have enough money to sustain happiness. Money worship often leads to overspending, revolving credit card debt, financial dependence, taking extreme risks, and putting work before family. These behaviors are the source of and solution to stress, which make them hard habits to break. This script can be helped by making small mindset changes over time, setting long-term goals, and being tangibly involved in financial decision making. Going to the bank to add to savings or meeting with a financial advisor to review investment accounts are examples of way to be tangibly involved in finances.

Money status is the third money script. This script is characterized by the idolization of those who are wealthy or appear wealthy. Needlessly expensive or flashy, name-branded material goods are often seen as valuable because they are obvious signs that show someone is wealthy. The driving force behind financial decisions is to get wealthy as quickly as possible or appear wealthy to those around them at all costs. The appearance of wealth coincides with self-worth and a feeling of superiority over those who cannot do the same. Gambling, social climbing, and frequently changing jobs are used to create a guise of wealth; these do not lead to long-term wealth because steps like education and career building are skipped. Money status can be reframed to make healthy financial decisions by aligning perceived symbols of wealth, like clothes and cars, with actual symbols of wealth, like education and retirement savings.

Money vigilance is the final money script. It is characterized by a focus on how wealth is built and the importance of protecting and saving money. Credit is often seen as giving into temptation, and there can be anxiety about spending even small amounts. Extreme vigilance can prevent enjoyment from the benefits and security of accumulating wealth and can be detrimental to financial goals by not allowing for enough risk to be taken. Making finances transparent and easily understandable and seeking reassurance from family or financial professionals can help to reduce anxiety and allow for the simultaneous fulfillment of goals and enjoyment of accumulated wealth.

In conclusion, understanding our money scripts can help us make more rational financial decisions and lead to a happier and more financially sound life. By recognizing our emotional connections to money and making mindset changes, we can develop healthy financial habits and achieve financial well-being. 

If you would like to uncover your money script, visit https://form.typeform.com/to/Bh9cPW?typeform-source=www.google.com.

- Kyle McCune, CFP®, Worley Erhart-Graves Financial Advisors