The sum of all your money scripts equals your money mindset. And the tricky part of discovering this mindset is some of the thoughts and beliefs are conscious ones and some are buried below the surface or subconscious. Remember Susan? She had a money script that was negatively effecting her financial planning; however, until she did wealth coaching this thought lived in her subconscious. The work is to bring these thoughts and beliefs to the surface so you can evaluate each one and decide which one’s will bring you toward wealth and which one’s will keep you stuck in financially unhealthy habits.
Your money mindset is influenced by a variety of factors. These include your family your culture, your gender, your social class and your personal financial experiences.
Culture: If you grew up in United States then you were raised in a capitalist society that equates being a good American with buying products and services to fuel the economy. Right after the stock market crashed in the fall of 2009, the President of the United States gave a speech encouraging us all to go out and spend money. Interestingly enough we were the same citizens who that had just lost approximately 30% of our retirement savings! Your culture has a big impact on your money mindset and ultimately your financial behaviors.
Gender: Boys are raised to be competitive, to make money and to be good providers for their families in adulthood. Women are reared to support the family, to help others and to put their needs, monetary and otherwise, second to those around them. If a man demonstrates a profit driven he is great businessman. Conversely, a woman who is motivated by money is viewed as greedy and self centered. While some of this is shifting, it takes generations to truly change mindsets.
Social Class: The social class you were born into also influences your money mindset. If you were born into an affluent family, chances are your view money and its purpose in life is dramatically dissimilar than if you were raised in poverty in the inner city. In a lower income family money was used to buy food, clothing, and shelter and to provide for basic needs. In a wealthy family, basics needs would be easily taken care of leaving excess cash to be invested, to support an enjoyable lifestyle or to pursue philanthropic endeavors. There is an assumption made by many that states that if you are born into affluence than you have a healthy relationship with money because there was an abundance of it in your life. Actually those from extreme wealth often have more work to do on their internal feelings about money than those who were born without.
Personal Financial Experiences: The last area to consider when looking at what contributes to your money psychology is your personal money experiences. Significant money events, including wining the lottery, receiving a sizable inheritance, filing for bankruptcy, an expensive divorce, being laid off, not getting a raise and the like, leave a lasting mark on your money psyche and ultimately alter our money scripts.
Beth is a good example of how personal experiences around money can profoundly impact your money mindset. You see, when she was young Beth worked as a babysitter like a lot of young boys and girls to make some spending money. She worked for about a year with a family and knew that they liked to hire her as she could manage watching all 4 of their children when they were out. At one point, Beth decided to ask for a raise and was never called upon to babysit again. This left her feeling unworthy and ashamed of wanting more money.
Flash forward 30 years, and Beth is now working as a family childcare consultant. She learned that her rate is low and she wants to increase it be more in line with the market rate for family childcare services. She is nervous but decides to face her fear and ask her employer for a raise. Beth’s request is denied and her belief that she is not worthy of a raise is reinforced. Her personal experiences with money, while only two instances, negatively impact Beth’s ability to demand and receive a fair wage.
What’s influencing your money mindset?
