Do you wonder what your money script is and how it affects your finances? Then this blog is for you! Learn your money scripts and work around them for a better financial future.

Money is surely an important aspect of our lives. Our belief system can have a greater impact than we realize on our financial success. 

These beliefs and attitudes often form as “money scripts” and they can either help or hinder our ability to build wealth.

In this blog, we will reflect mainly on the four main categories of money scripts and their effects on our financial behavior. 

What Are Money Scripts?

Money scripts are the beliefs and attitudes we have towards money that are often formed in childhood and carried into adulthood. They can be empowering or disempowering and can greatly influence our financial behaviors and decisions. Coined by financial psychologist Dr. Brad Klontz and his colleagues observed that money scripts are often formed during a financially traumatic event or by picking financial behaviors around us.

Money scripts are often deeply ingrained and can be difficult to change, but understanding them is the first step towards developing a healthier relationship with money.

The Four Categories of Money Scripts

It is believed that each one of us exhibits more than 100 money scripts at any given point in time. However, Klontz, through his research, identified four major categories of money scripts: money avoidance, money worship, money status, and money vigilance. Let’s take a closer look at each one of these money stories ingrained in us.

Money avoidance

When a person harbors money avoidance scripts, they usually avoid the subject of money in their lives. This avoidant pattern usually stems from the belief that money makes one greedy, and that those who are wealthier are more morally corrupt than poor people. 

This fear of aversion towards money can lead a person to sabotage their financial security. Money avoiders may also innately feel undeserving or guilty for wanting affluence. This person may unconsciously avoid developing wealth-building habits that lead to financial independence. 

This prominently shows up through a lack of financial planning, avoiding looking at bank statements, settling for a low income, or even overspending. 

Money vigilance

A person who is money vigilant is cautious about how money functions in their life. They keep a close eye on their savings, debt, and credit scores. They’re also more likely to maintain an emergency fund and avoid paying through credit cards. 

While this awareness may mostly be financially healthy, if taken to the extreme, it may lead to missed opportunities for enjoyment.

A hyper-vigilant outlook can lead one to develop a fear of losing money, hoarding money, and not spending on things of value.

Money status

Those who unconsciously hold money status scripts believe their net worth is equal to their self-worth. In this type of script, one’s wealth and material possessions are seen as a status symbol. 

They may often feel a sense of superiority while also seeking the approval of others, through their money.  Thus, feelings of inadequacy or comparison may arise if they don’t possess the same level of wealth, or possessions as their peers. 

Money status scripts may manifest into overspending behaviors, which can snowball into debt. 

A wonderful step to being aware of your money status script is to be aware when you have the urge to purchase the latest, best item to keep up with the others. Take some time to reflect on your inner conversations before spending your buck. You could also dwell on simple questions like:

• What does spending money mean to you? 
• What emotions do you feel when you want to make a purchase? 
• Does spending on this specific product align with your long-term goals?
• Do you find yourself feeling anxious or guilty after a purchase?
• Do you necessarily use your money on items as a means to seek validation?
• Will buying this product bring me true satisfaction, or is it just a temporary fix?

Money Worship 

A person who possesses money worship scripts believes money is the key to happiness and solving all of life’s problems. Money worshippers pedestalize money by placing a high value on its significance. 

So other aspects of life, like relationships, and life-enriching experiences, take a backseat in a money-worshiper’s life. Accumulating money, and material possessions takes priority as a way to find satisfaction and happiness. 

Living in a time and society that runs around money and capitalism, money worshipping might just be the new norm. Yes, we do earn money to spend, but how we spend that money matters too. The money we make is never a reflection of who we truly are

Identifying Your Money Scripts

After learning about the four categories of money scripts, you may be pondering which money script applies to you. People often have a combination of money scripts, with one or two being more than the other. Some money scripts can also be contradictory to others. 

However, unlearning your money scripts arising out of your deep-seated money beliefs can be complex, so don’t let it limit you.

You can take a moment to reflect on the beliefs you hold about money. The healthier and not-so-healthier ones. Letting go of judgment, observe what money scripts you picked up from those around you in your early childhood. 

However, I have also noticed a person’s money script may develop differently despite sharing similar childhood backgrounds. For example, I personally know a set of twins who totally differ in the money scripts they carry and the financial decisions they make.

 While one believes in being prudent with her money, the other believes in enjoying the present and thus does not hold back on splurging. Even though their parents lived on a tight budget, one adopted the money script to save and the other to spend.

So a money script can be formed due to complex reasons such as individual personality traits, life experiences, and personal values. It is important to recognize that money scripts are not solely determined by childhood backgrounds, but can also be influenced by external factors such as peer influence, societal norms, and cultural beliefs. 

Therefore, understanding a person’s money script requires an examination of various factors that shape their financial mindset.

Reflections on your Money Beliefs and Money Scripts

By reflecting on these simple questions you can identify what money beliefs and scripts you currently identify with:

1. How do you feel about spending, saving, and earning money?
2. What anxieties and fears do you harbor about money?
3. Do you prioritize material possessions or experiences?
4. Do you compare yourself to others based on their wealth?
5. What are your personal beliefs and attitudes toward money?
6. How have your past experiences with money shaped your current money beliefs and scripts?
7. Are there any external influences, such as friends or media, that have influenced your views on money?
8. Have cultural or societal norms played a role in shaping your money script?
9. Do you prioritize saving and long-term financial security, or do you tend to focus more on immediate gratification and spending?
10. How do you feel about taking risks when it comes to financial decisions?
11. Are there any specific values or goals that guide your financial choices?

If you wish to dive deeper to identify your money beliefs and scripts, click on this link to take the Klontz Money Script Inventory Quiz. 

Money scripts are derived from powerful money beliefs and attitudes that can greatly impact our financial success. These beliefs and attitudes are formed due to our lived experiences. By understanding and challenging our money scripts, we can develop a healthier relationship with money and improve our financial habits and well-being.

Take some time to reflect on your own money scripts and consider seeking professional help if needed. With effort and self-awareness, you can change your money script and achieve financial success.

Everything from short actionable tips to insightful long-form content, personally put together by me to break your negative money patterns and master your finances. 🦸🏻‍♀️

Partha Iyengar