Psychology of Financial Planning

Money avoidance, money worship, money status, and money vigilance. They are typically unconscious, trans-generational beliefs about money formed in childhood that drive financial behavior.

A belief that money is bad, corrupting, or undeserved. People with this script may sabotage their own financial success, give money away, avoid looking at statements, or feel anxiety/guilt about having money.

A belief that more money will solve problems and bring happiness; there is never enough. Associated with overspending, workaholism, hoarding, and revolving credit-card debt.

Equating self-worth with net worth and believing money signals success/status. Associated with overspending to project an image, gambling, and lying to a spouse about money.

Alertness, watchfulness, and concern about saving and frugality. It can be adaptive (encourages saving) but excessive vigilance causes anxiety and reluctance to enjoy money or spend on legitimate needs.

Values are deeply held principles about what matters (e.g., security, freedom). Beliefs are accepted ideas about how money works (money scripts). Attitudes are evaluative dispositions (favorable/unfavorable) toward money topics that flow from values and beliefs.