{"id":6904,"date":"2020-11-18T07:00:45","date_gmt":"2020-11-17T23:00:45","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=6904"},"modified":"2020-11-18T12:55:59","modified_gmt":"2020-11-18T04:55:59","slug":"do-you-know-what-a-money-script-is","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/do-you-know-what-a-money-script-is\/","title":{"rendered":"Do You Know What A Money Script Is?"},"content":{"rendered":"

We have all heard the phrase \u2018Humans are creatures of habit\u2019 but have you ever stopped to think about how those habits help and hinder your days?<\/p>\n

Habits are behaviours and preferences that we develop, based on our views and belief systems, that make up a kind of script which help us to navigate the world. They shape our lives in an incredibly impactful way. You will have developed hundreds, if not thousands, of habits such as the time you get up and go to bed, your work habits, how and when you eat and your exercise regime.<\/p>\n

Often, these behaviours develop in childhood and adolescence and are inherited from our parents and, of course, they may not always<\/strong> be helpful.<\/span><\/p>\n

Financial behaviours are no different. The unwritten rules, based on your views and beliefs, which you apply to your finances are often established in your childhood and teenage years. If your parents where scrimpers and savers that might make you one, or conversely, in an act of rebellion you may have responded by developing a cavalier attitude to debt.<\/span><\/p>\n

The term money script<\/strong> was coined in an academic financial study carried out in 2011 on Money Beliefs and Financial Behaviours<\/a> <\/span>which aimed to help people accurately identify money beliefs that can have a negative impact on financial health.<\/span><\/p>\n

A survey was carried out asking participants whether they agreed or disagreed with a number of statements around money such as \u2018People get rich taking advantage of others<\/em>\u2019 and \u2018More money will make you happier<\/em>\u2019.<\/span><\/p>\n

Researchers identified four distinct money belief patterns or scripts\u00a0 – money avoidance, money worship, money status and money vigilance.<\/span><\/p>\n

Understanding which of these money scripts applies to you can enable you to analyse the unwritten rules which you apply to your finances and identify areas where those rules may need to be rewritten. This can reveal easy ways that you can make changes to improve your overall financial health. Let\u2019s take a closer look at the four money scripts.<\/span><\/p>\n

1. Money avoidance<\/strong><\/span><\/h4>\n

Money avoiders believe that money is bad and that they don\u2019t deserve it, often linking wealth and immorality. They see money as a force that stirs up fear, anxiety or disgust and have a tendency to self-sabotage their finances. They are afraid of debt so worry about abusing credit cards and overdrafts, which is not a bad thing, but may avoid spending money on necessary purchases and often unconsciously spend or give money away to have as little as possible in their control.<\/span><\/p>\n

Money avoiders often avoid thinking about money which can lead to unopened and unpaid bills, difficulty creating and sticking to a budget and a failure to plan for retirement and other future expenditure. \u00a0They tend to have lower levels of income and net worth and to be younger, suggesting that money habits are fluid and can change as we get older.<\/span><\/p>\n

Helpful actions to take if you are a money avoider<\/strong><\/span><\/p>\n