What’s the first thing that comes to mind when you think about budgeting? How do you feel about debt? What’s your outlook on your financial future?
Your answers to these questions will likely depend on the money scripts you have. Money scripts are beliefs people have about money, whether they’re aware of them or not.
Understanding and reshaping these beliefs can have a profound impact on how you manage and grow your money. Ultimately, they can affect what you do in your daily life and in the future.
What are money scripts?
Money scripts are subconscious notions that tend to influence a person’s financial decisions. Examples include "money is the root of all evil," "don’t talk about money," or “you should never get in debt.”
From a young age, these narratives form based on what you see and experience. They may also come from your parents, caregivers, and the world around you. For example:
- Parents and authority figures
If you grew up in a household where money was a constant cause of stress or conflict, you might become extra careful about money or avoid dealing with financial matters entirely.
You may also unknowingly and subconsciously adopt views on money from your parents and other people you looked up to growing up.
- Culture and society
Money can be a touchy subject especially if you were raised in a culture that considers it a taboo topic. This sentiment might keep you from discussing money openly, even when it’s important to be transparent.
Messages from the media and society at large can also shape your opinions. There are ads and online content that subliminally promote the idea that happiness is tied to becoming wealthy and spending money.
Others may suggest that the pursuit of wealth will make you greedy and materialistic.
- Personal experiences
Early experiences with money can leave a lasting impact. You may have witnessed a significant event, like a loved one losing a job or getting overburdened with debt.
There are also positive events that can set you up for success later in life. A parent or guardian may have taught you how to budget your allowance and start saving money when you were young, encouraging you to think long-term about your finances.
Rewriting your money scripts
Money scripts aren’t inherently good or bad. It’s how you act because of them that can have negative or positive effects on your life.
Your beliefs may be worth revisiting if managing your money feels like a constant struggle. Here’s how you can start:
1. Identify your money scripts
You may need to reflect and dig deep to draw out subconscious beliefs about money, especially if they were formed in childhood. Ask yourself questions like:
- What did my parents, family members, and authority figures teach me about money?
- How do I feel when I think about financial planning or budgeting?
- Are there specific events or messages that shaped my current views on money?
Writing down your thoughts, talking to people you trust, and consulting a professional can help shed light on your money scripts.
2. Reframe limiting beliefs
Once you know your money scripts, identify which ones are valid and which ones are potentially damaging. For example, if you believe "financial planning is only for the rich," examine where this belief comes from and how it affects your life.
If you have limiting beliefs, try reshaping them into positive and helpful ones. Instead of thinking "investing is too complicated," you can turn it into "I can learn the necessary skills to invest."
3. Educate yourself
Sometimes, negative beliefs can be debunked by learning how to separate myths from facts. Understanding basic concepts like budgeting and investing allows you to identify and challenge outdated or incorrect assumptions.
4. Develop healthy money habits
Meaningful change rarely happens without effort. You’ll need to reinforce positive beliefs by forming good habits.
This may involve creating a budget, tracking your spending, and regularly checking your progress toward savings and investing goals.
5. Seek professional guidance
Deeply rooted financial beliefs can take more work to undo. It can help to have a licensed advisor who can give you insights and help you create a personalized plan to improve your financial well-being.
Changing deep-seated views can be a gradual process, but it’s a crucial first step toward developing a healthy outlook and relationship with money.
