Is Your “Money Script” Keeping You Broke?
By: Grace Tinsen
Tags: Money, Financial, Money Mindset

How Your Beliefs Will Help Or Hurt You

We are all struggling to one degree or the other during this COVID crisis. Job loss, uncertain economic impact, isolation, and illness: it is the perfect storm of crises that cause us all to worry.

And although we have several categories of items to worry about, this is also a good time to be mindful of the thoughts we are holding every day. It matters. Here is why this is a time to be vigilant.

Below is an illustration of how our beliefs shape our results. I’m in no way suggesting if you have lost a job or are currently ill, that you shouldn’t worry, as that is absurd. But what we believe and how we think are two things within our ability to control. When we can’t control the virus: let us focus on what we CAN do. We can stay home, and we can be mindful of our thoughts.

This Is How It Works

Our “money script” can be very challenging to change, so it requires some effort. Our habitual thoughts and beliefs carve neural pathways in your brain. Every time we re-visit them, we reinforce those pathways. These neural pathways are in the brain, making changing them difficult. Like ruts on a road: your tire wants to travel the well-worn path.

You MUST examine and change your script if you want different results. Your Money Script will determine whether you are a saver or a spender. It will determine if you avoid the whole discussion. If you want a lifetime of safety and financial security, you have to start with your Money Script. What you believe about money will determine whether you have money or keep the money. It will dictate all your financial behaviors.

You did not create your original script: you borrowed it.

You did not create your original money script: you borrowed it from your family of origin. How your parents thought about money and handled it, becomes your belief. If they were poor and always afraid, chances are you carry that. If they were always secure, chances are you have a lot less money anxiety and better habits.

Think back: what were the money discussions in your family? Or did your family avoid talking about it completely? This formed the basis of your belief system. Combine that with the fact that half of Americans are financially illiterate. Most schools don’t teach finance or economics. It is no surprise that so many people struggle and have very poor money scripts.

According to Standard & Poor’s Global Financial Literacy Survey, the US ranks 14th in the world in financial literacy. This puts the US just slightly higher than BOTSWANA on the global literacy scale.

According to research by Dr. Brad Klontz and Dr. Sonya Britt from Kansas State University, there are 4 Common Money Scripts. Their research pointed out that these beliefs are associated with lower incomes, lower net worth, and higher amounts of credit card debt. This leads to the scenario of a disaster, especially during a pandemic. Let’s use this time to get better!

Money Avoidance

This was a widespread belief, especially for my women investors as an advisor. The Avoiders believe “money is the root of all evil” or that they don’t deserve money. When Avoiders are dealing with their own money, they can self-sabotage financial success. They use credit cards to finance their lifestyle and avoid working with a budget.

Money Status Grabbers

This one is self-explanatory. This script is the “keeping up with the Joneses” script that can be disastrous. Status Grabbers tend to be concerned with status and the illusion of success. This script has a lower feeling of well-being and higher anxiety. This group can overspend and take undue risks, and the goal is an attempt to raise their social status. This group may also experience compulsive spending problems and being financially dependent on others. This script may also lead to secret spending or financial infidelity.

The Money Worshippers

This group believes that an increase in income or a financial windfall will solve all their problems. Research has shown that a level of income that is much above basic needs rarely leads to an increase in happiness. Klontz’s study and others have determined that there is no real correlation that income above $75000 or a windfall produces more joy. This group tends to have higher credit card debt, and this script is the one that affects the majority of Americans. This group may also be associated with hoarders. There can also be a tendency to give money to other people that they need themselves. They also tend to not pay attention to their own financial situation.

Money Vigilance

The group with this script tends to be secretive about their finances. This group tends to be watchful and worried. This is not necessarily a good thing. The danger in this script is it can keep them from enjoying the benefits and sense of security that money can provide.

Which of these scripts is the one you follow? You may also have more than one. What you want to pay attention to is the extremes: do you feel like in some areas you go out to the lunatic fringe?

Are your money scripts supporting health behaviors, or are they getting in the way of your progress?

Bottom Line: It is NEVER too late, to rewrite your Money Script

Once you spot your script, you can choose to change it. Choosing a healthier money script will improve your financial situation, and it is more likely to be permanent. You can take the deliberate and mindful steps to make healthy changes and not be at risk of passing on harmful scripts to your kids.

For ongoing financial tips and resources: visit the Women’s Wealth Academy: https://www.facebook.com/groups/561636728025548/