Brad Klontz: What's Your Money Script?

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Dec 10, 2024

In this chat, Dr. Brad Klontz, a financial psychologist and co-founder of the Financial Psychology Institute, dives into the deep connections between money and mental health. He discusses how consumerism shapes self-worth, particularly among youth. Klontz reveals the impact of social media on our perceptions of wealth and the resulting feelings of inadequacy. He also introduces 'money scripts'—the hidden beliefs that influence our financial habits. The conversation emphasizes the need for emotional engagement with money to foster better financial wellness.

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ANECDOTE

Personal Journey to Financial Psychology

Brad Klontz developed an interest in financial psychology from personal experiences with money.
Growing up poor, witnessing disparity, and losing money in the tech bubble sparked his curiosity.

INSIGHT

Money Scripts vs. Cognitive Biases

While behavioral finance focuses on cognitive biases, Klontz's research emphasizes individual beliefs about money.
These beliefs, or "money scripts," are often subconscious and stem from family patterns.

ANECDOTE

Generational Money Patterns

Klontz's grandfather's Depression-era bank loss led to a lifelong distrust of banks, influencing his mother's fear of losing money.
This, in turn, impacted Klontz's risky investment behavior, highlighting generational patterns.

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Our guest on the podcast today is author and financial psychologist, Dr. Brad Klontz. He’s an Associate Professor of Practice at Creighton University’s Heider College of Business. He’s also co-founder of the Financial Psychology Institute and managing principal of Your Mental Wealth Advisors, a fee-only registered investment advisory.

Brad is co-author or co-editor of nine books on the psychology of money, including his latest, Start Thinking Rich: 21 Harsh Truths to Take You From Broke to Financial Freedom, which he co-wrote with Adrian Brambila. He is a fellow of the American Psychological Association and a former President of the Hawaii Psychological Association. He was appointed to the CNBC Financial Advisor Council in 2023 and received the 2018 and 2021 Montgomery-Warschauer Awards from the Journal of Financial Planning, honoring the most outstanding contribution to the betterment of the financial planning profession. He received his Doctor of Psychology degree from Wright State University, his master’s certificate in personal financial planning from Kansas State University, his master’s in counseling and human resources development from South Dakota State University, and his bachelor’s degree in psychology from Olivet Nazarene University. Brad is also a Certified Financial Planner professional.

Background

Bio

Start Thinking Rich: 21 Harsh Truths to Take You From Broke to Financial Freedom, by Dr. Brad Klontz and Adrian Brambila

Your Mental Wealth Advisors

Money Scripts

Your Money Script

“Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory,” by Bradley Klontz, Sonya Britt-Lutter, Jennifer Mentzer, and Ted Klontz, Journal of Financial Therapy, April 2011.

“Identify and Understand Clients’ Money Scripts: A Framework for Using the KMSI-R,” by Michelle Arpin Begina, Jessica Hickingbottom, Elaine Grogan Luttrull, Megan McCoy, and Bradley Klontz, Journal of Financial Planning, March 2018.

Behavioral Finance

“Untangling Behavioral Finance and the Psychology of Financial Planning,” by Brad Klontz, Journal of Financial Planning, January 2023.

“Integrating Interpersonal Neurobiology Into Financial Planning: Practical Applications to Facilitate Well-Being,” by Brad Klontz, Journal of Financial Planning, May 2020.