What are money scripts? What’s yours?

Like what? Here are some examples of damaging behaviours that are caused by unrecognized money scripts:

• Overspending 
• Avoiding reading financial statements, bank balances and credit card balances
• Excessive savings, a.k.a. financial hoarding
• Obsessing with the markets an actively day trading without thinking considering risk
• Spending money as a status symbol
• Putting work ahead of friends and family

Understanding your money scripts can be key to developing a healthier relationship with money and achieving your financial goals.

Where did the term “money scripts” come from? 

In 2011, financial psychologists Ted Klontz and Brad Klontz conducted a study on money beliefs and financial behaviours, and they coined the concept of money scripts. For their study, the researchers asked participants to rate their level of agreement with 72 statements related to money. As part of the outcomes, the duo identified four main money scripts, known as the Klontz Money Script Inventory (KMSI). 

Klontz and Klontz concluded that money scripts are beliefs that impact how you view and handle money as an adult, and they are often based in childhood. Think of your mind as a computer, making decisions and acting upon things. The software running in the background is your money script, which influences your financial decisions and behaviours, often without realizing it. 

What’s the benefit to understanding our money scripts?

The Danish philosopher Søren Kierkegaard perfectly answered this question when he said, “Life can only be understood backwards; but it must be lived forwards.” And my intention for this column, “A Rich Life,” is to guide Canadians on how to “live forward” with a rich life. 

To make meaningful and sustainable behavioural changes regarding finances, we need to uncover and detangle our past, so we know what and how to change moving forward. 

When you understand your money script, you’ll become more aware of your underlying beliefs about money. This helps you make more insightful financial decisions and empowers you to make meaningful changes in your financial behaviour.

As you read about the four main money scripts, reflect on your own beliefs and behaviours. This is not about being right or wrong, nor good or bad, but rather about bringing awareness to your beliefs and behaviours so that you can begin to rewire and change them. The Klontzes’ research shows that we all have tendencies toward all of the money scripts, but we have one dominant script that influences our beliefs and behaviours most.

Which is your dominant money script?

Here are the four main money scripts:

1. Money Avoidance

Money avoiders tend to believe that “money is the root of all evil.” They often associate wealth with corruption and greed, and they may feel guilty for wanting or acquiring money for themselves, especially when others have less. They tend to have view a higher tendency towards the Money Avoidance script tend to view money in a negative light and may believe that it is inherently bad.

Money avoiders see virtue in living with less, but this mindset can also hinder financial successes, as money avoiders may unconsciously sabotage their efforts to accumulate wealth. They may frequently give away money and avoid thinking about finances, which can lead to overspending and difficulty in managing a budget. Those in “helping” professions, such as psychologists and social workers, tend to fall into this category.

2. Money Worship

Individuals who exhibit money-worshipping behaviour believe that money is the key to happiness, and they see it as a solution to any problems. However, they also believe that one can never have enough money and, ultimately, find that their pursuit is never satisfied. Interestingly, money worshippers are more likely to carry credit card debt and have a lower net worth.

Money worshippers tend to purchase material possessions to feel happy, and they may prioritize work over spending time with friends and family. And, those with the Money Worship script often give or loan money to others even when they cannot afford to do so. While this is not always the case, people who lean towards a Money Worship script are often high performers in careers that reward hard work and upward mobility—for example, aspiring to make partner in a law firm or accounting firm.

3. Money Status

Do you feel like your self-worth is tied to your wealth? This is a common belief among people with the Money Status money script. The Money Status and Money Worship scripts share some similarities, but the former highlights outward displays of wealth, while the latter prioritizes accumulating money for happiness. This often leads to overspending, gambling, financial dependence, and lack of trust in relationships. In fact, couples who keep their money situations hush-hush from each other make a significant financial mistake. 

Research by the Klontzes shows that many people who hold Money Status scripts were raised in low-income homes and believe that achieving a higher socio-economic status will increase their self-worth and happiness. Individuals who demonstrate Money Status beliefs don’t necessarily share similar career choices; rather, they tend to become financially dependent on others and overspend.

4. Money Vigilant

The Money Vigilant money script applies to people who are generally diligent about and attentive to their financial lives. They are constantly making sure they have enough money, such as by reviewing financial documents, and they believe in the importance of regular saving. They tend to achieve healthy financial outcomes, as they make responsible financial decisions and prioritize living within their means.

However, it’s not all bouquets of dollar bills. The Money Vigilance script can also lead to excessively managing and feeling uneasy about money, which can hinder personal well-being. Money Vigilant individuals may feel reluctant to enjoy their money, as they aren’t comfortable with spending. Money can provide a sense of safety and security; however, those with Money Vigilant tendencies may not get this benefit, as they seem to continue worrying despite having enough money.

Despite the potential drawbacks, the Money Vigilance script encourages saving, frugality and smart spending, which ultimately lead to good financial outcomes and health. Individuals who demonstrate Money Vigilant tendencies are often found in professions that require working with numbers, such as accounting, engineering and data analysis.

Which money script do you have? What do you do with this info?

Identifying and understanding your money scripts can be powerful, allowing you to change your financial behaviours and break free from negative patterns. Whether you’re looking to save more, invest wisely, work on any negative beliefs around money or simply gain a better understanding of your relationship with money, taking the time to explore your money scripts is an essential first step. 

Know that money scripts are not fixed and permanent. In fact, with effort and commitment, you can change your money scripts and create positive financial behaviours that align with your goals and values. 

Shaun Maslyk is the host of The Most Hated F-Word Podcast, a show that explores the psychology of money and helps listeners understand their relationship with it. As a Certified Financial Planner and Certified Financial Behaviour Specialist, Shaun brings a unique perspective to the show, offering insights and advice on personal finance and financial well-being. To learn more about the power of our money beliefs, listen to episode #30 of The Most Hated F-Word Podcast, “The Power of Money Beliefs” with Dr. Moira Somers.

Read more of A Rich Life:

• Investing Beyond the Numbers: Understanding financial flashpoints
• Emotional investing: How to make better decisions with your money
• What is financial psychology?
• What’s your money story?

About Shaun Maslyk, CFP

Shaun Maslyk is a Certified Financial Planner and host of The Most Hated F-Word podcast. He integrates psychology and coaching to help people awaken their money stories.

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