Money Scripts and Emotional Financial Decisions

Research shows that 90% of financial decisions are made emotionally, not logically. In this podcast episode, the host explores the concept of money scripts, which are beliefs and attitudes towards money that impact our financial behaviors. The focus is on the category of money avoidance, where individuals see money as bad and anxiety-provoking, often believing that rich people are greedy. Money avoidance is associated with lower education, income, and net worth. It can predict self-defeating money behaviors such as compulsive buying, hoarding, and workaholism. The episode suggests that by exploring the origins of these beliefs and developing awareness through rituals, checking finances regularly, reframing money as a tool for good, and creating a spending plan, individuals can overcome money avoidance and improve their financial well-being.