Financial Psychology: Money Scripts
Money scripts are subconscious beliefs that people hold about their money and their finances. Generally, these start to form at an early age through observing attitudes and behaviors parents or other role models have toward money. They continue to be shaped over time through life experience and lead to money-related behaviors in adulthood that are challenging to change.
Examples of Money Scripts 1
- I believe that money is inherently good.
- I believe that money is not worth pursuing because it will create more problems than it will solve.
- I believe that I deserve to have money.
- I believe that having money creates more opportunities for conflict.
- I believe that you should never talk about money.
- I believe that money will add more meaning to my life.
Four Major Money Script Categories 2
Money Avoidance
- Money is bad
- Negative attitude about discussing money
Money Worship / Money Focus
- Money solves all problems
- Money brings power and happiness
Money Status
- Self worth based on net worth
- Drive to buy newest, best, & extravagant things
Money Vigilance
- Money is a private matter
- Money should be saved, not spent
A person can have hundreds of money scripts. Assessments such as the Klontz Money Scripts Inventory can be used to help onboard a prospect or craft financial strategies and set a meeting cadence for current clients. For example, a status seeker may need to regularly discuss spending and major purchase decisions to slow down their thought process, while someone who is money vigilant may need to set a “fun money” budget to force them to enjoy the fruits of their labor.
1 Sages and Chatterjee. “Client Psychology Barriers in the Financial Planning Process and Strategies for Overcoming Them.” Psychology of Financial Planning, CFP Board, 2022.
2 Klontz, Brad. “Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory.” The Journal of Financial Therapy, Volume 2, Issue 1, 2011.
For Use with the General Public. Financial Planning and Advisory Services offered through Vicus Capital, Inc., a federally Registered Investment Advisor.
