We like to think we are in control, all of the time. Of course, that’s rarely the case, given the myriad factors we can’t influence.
Money is no different. We like to think our financial decisions are our own, but many of them stem from beliefs we never chose—or even knew we had.
Financial literacy has gained prominence in public policy in recent years as governments seek to increase understanding of money and the economic systems in our society. In Canada, the Financial Consumer Agency of Canada’s National Financial Literacy Strategy 2021–2026 is one example. (1) Presumably, the idea is to help people make better decisions about their money, whether planning for the future or managing next month’s budget. We also suppose that, if successful, reliance on the government and government programs such as the Canada Pension Plan (CPP) or Old Age Security (OAS) as the main or only facet of an individual’s financial plan will be less likely.
As we increase our own financial literacy, we might stumble across our “money scripts.” These are unconscious beliefs about money that shape our financial behaviours and attitudes that are often ingrained in our minds from a very young age. (2) Typically, they originate from things we tend not to have very much control over: how our parents talked (or didn’t talk) about money, whether we grew up with plenty or with little, or a formative event like a parent losing a job or a family business going under.
By examining these money scripts and how they shape our day-to-day financial decisions, we can improve our financial plans, potentially more than by learning typical financial concepts like RRSPs, mortgages, and credit card interest. This is because our money scripts follow us everywhere and show up in every financial transaction, not just when we sit down to plan.
Some common money scripts:
“There will never be enough.”
“The stock market is rigged.”
“I don’t deserve money.”
“More money will make things better.”
The problem with money scripts is that they often contain “incomplete, conflicting, or partial truths.” (3) It is not until you examine what your money scripts are that you can begin to understand how they might be affecting your spending habits, your relationships, and even your emotional health.
Interested in learning more about your own money scripts and financial beliefs? Dr. Brad Klontz, Psy.D., CFP®, is one of the creators of the Klontz Money Script Inventory (KMSI), and you can visit his website below to complete an online Money Script Survey for yourself.* It’s a great exercise in starting a conversation about money with your partner, or just to learn a little more about yourself and your own financial beliefs.
Take the survey here: https://www.bradklontz.com/moneyscriptstest
References
*PWL Capital is not affiliated with Dr. Klontz. The survey is provided for educational purposes only and is not a substitute for professional financial or psychological advice.
