Our Relationship with Money

Think back to the first dollar you ever made. Now, the first dollar you ever spent. Maybe you were an entrepreneur selling lemonade on a street corner in your neighborhood. Alternatively, you could have been lucky enough to find a dollar under your pillow from the tooth fairy, after losing your first tooth. In any case, such a pivotal moment in your life marked the beginning of your lifelong relationship with money. Whether we like it or not, money plays a critical role in nearly every facet of our lives, and knowing how money can shape our own story can provide crucial insights into our patterns of success (to promote) and failure (to avoid).

Our relationship with money will likely be the longest, non-human, relationship that we have in our lives. When we zoom out to a 30,000-foot level, there are many similarities between how different people interact with money. Brad Klontz, Psy.D. developed the Klontz Money Script Inventory¹, providing four “scripts” for describing our relationships with money.

Money Avoidance

Money Avoidance starts with the premise that money is bad. It is the idea that wealthy people are greedy or corrupt and that it is virtuous to live with less money. These folks might not believe that they deserve money, maybe have difficulty managing a budget, and in some cases could self-sabotage out of financial success. On the flipside, Klontz’s research suggests that Money Avoidance is associated with higher-educated and wealthier folks. Perhaps it’s because they are so frugal to begin with.

Money Worship

Money Worship suggests that money can buy happiness. They might be prone to carry more credit card debt. They purchase more freely as doing so provides a sense of joy. They are also some of the most work-oriented individuals. Today’s hustle culture, or even the “moonlighting” culture of past generations, is filled with those who would most identify with the Money Worship Script.

Money Status

Money Status gives rise to the idea that self-worth and net-worth are linked. Those who identify with this script are more likely to make outward displays of wealth. While this can be problematic if the person spends more than they have, there are also the undercurrents of extreme generosity. Giving ‘till it hurts… their pocketbook, in a sense.

Money Vigilance

Money Vigilance describes those who are watchful and worried about their own financial health. They can be the lone wolves of the financial world. They don’t expect an inheritance, they feel the need to work for their money and be self-sufficient, and they want to ensure a secure financial future for themselves, and perhaps their families. These folks can also be the most anxious about making any financial decision. This can get to the point where they could end up worrying themselves into an early grave before having a chance to utilize their hard-earned money.

This is a simple overview of the four Money Scripts, and it is important to know that there is not a good script or a bad script. They are simply truths (sometimes partial truths) about how we approach our relationship with money. In learning more about the scripts, and ourselves, we can learn how to better position ourselves for long-term success.

¹ Klontz, Bradley, et al. “Money beliefs and financial behaviors: Development of the KLONTZ Money Script Inventory.” Journal of Financial Therapy, vol. 2, no. 1, 1 Jan. 2011, https://doi.org/10.4148/jft.v2i1.451.

The information provided herein is for educational purposes only, and should not be construed as advice, including, but not limited to tax, legal, insurance, investment, or retirement advice. For your specific planning needs, please seek the advice of Integris Wealth Management, your tax accountant, attorney, insurance agent, or other professional as appropriate. Investing involves the risk of loss.