Chaitali Shah & Namrata Singh: Understanding our financial health begins with something deeper than income, savings or investments, it begins  with your beliefs about money. These beliefs, often unconscious, are known as money scripts. Developed early in life through personal experiences, family influences and cultural exposure, money scripts shape how we think, feel and behave around money. We rarely question them and instead we treat them as facts, “just the way things are.”

The term money scripts, describing the unconscious beliefs that underlie our financial decisions and behaviour, have been used by financial planners and therapists for over 2 decades. It gained prominence through the  2005 book Conscious Finance, co-authored by Rick Kahler, CFP® CFT and Kathleen Fox. Research done by financial psychologist Dr. Brad Klontz has deepened our understanding of how these beliefs are formed and how strongly they influence behaviour.

Most people carry dozens—sometimes even hundreds—of these scripts. While each belief may hold some truth in certain contexts, none are universally accurate. The challenge arises when these partial truths consistently guide decisions in ways that harm financial wellbeing.

Researchers have grouped money scripts into four main categories: Money Avoidance, Money Worship, Money Status and Money Vigilance. While some of us exhibit traits from all four, one or two usually dominate our behaviour.  Recognising our dominant script is the first step toward making healthier financial choices.

Money Avoidance

Money Avoidance is rooted in the belief that money is bad, corrupting and undeserved. People in this category often feel discomfort, anxiety or even guilt when dealing with finances. This mindset often develops in environments where money is often associated with conflict, stress or moral judgment. For example, someone who grew up hearing that “rich people are greedy” may subconsciously resist financial success later in life.

As a result, they may avoid budgeting, delay financial planning or disengage from money matters altogether—leading to missed opportunities and financial stress

Simple actions to take: Start small. Build habits like checking your accounts regularly or having open conversations about money. Reframing money as a tool and not a threat,can gradually reduce anxiety.

Money Worship

Money Worship is driven by the belief that more money will solve problems and bring happiness. While financial stability does improve quality of life, this belief becomes harmful when taken to extremes. Beyond a certain point, more money does not necessarily lead to greater happiness.

This can lead to a cycle of overworking, overspending  or accumulating debt in pursuit of a constantly shifting goal post of “enough.” Even significant financial success may feel inadequate because the expectation of happiness remains unmet.

Simple actions to take: Shift the focus from accumulation to purpose. Instead of asking, “How can I earn more?” ask, “How can I use what I have to create a meaningful life?”

Money Status

Money Status links self-worth with net worth. In this category, money is not just a resource, it is a measure of success, respect and identity. People influenced by this script often seek validation through financial achievements or visible signs of wealth. This may show up as buying luxury items to impress others, constantly comparing oneself to peers or equating higher income with greater personal value.

One of the biggest risks of this mindset is overspending. In an effort to “look successful,” individuals may take on debt or make financial decisions that undermine long-term stability. There is also a psychological cost: tying self-esteem to financial outcomes creates constant pressure and insecurity.

Simple actions to take: Pause before spending. Ask yourself: Why am I buying this? How long will this feeling last? Remember—financial success is only one part of your identity, not its definition.

 Money Vigilance

Money Vigilance is characterised by discipline, caution and a strong focus on financial security. These individuals are diligent savers, avoid unnecessary debt and plan carefully for the future. On the surface, this appears to be the most beneficial script.

This mindset is often driven by a deep fear of loss or instability. However, excessive vigilance can lead to anxiety, fear of spending and difficulty enjoying money. Life becomes centred on preservation rather than experience.

Simple actions to take: Allow space for enjoyment. Intentionally allocate money for experiences, hobbies or time with loved ones. Accept that some level of risk is necessary for growth—both  personal and financial.

Recognise, Reflect & Rewire

Change begins with recognising your patterns. When you understand your dominant scripts, you gain the ability to pause, reflect and choose differently.

Small, consistent actions like reviewing your finances, delaying impulsive purchases or allowing yourself to spend without guilt, can gradually reshape your relationship with money.

Ultimately, financial wellbeing is not just about having more money. It’s about having a balanced, intentional relationship with it. In the end, money is not just a financial tool—it is deeply connected to how we live, think and feel.

Source: Adapted from “Money Scripts: Your First Step in Understanding Your Financial Health” by Kahler Financial Group (2022), including research by financial psychologist Dr. Brad Klontz.

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Chaitali Shah, CFP® & MA (Economics) is a Consultant – Advisor at International Money Matters and was a Financial Economics Faculty at Wilson College, Mumbai

(chaitali.s@immpl.com)

Namrata Singh, CFP®, QPFP, MBA with more than 18 years of experience in banking and wealth management. (namrata@asinvestment.in)

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