Everyone’s relationship with money is unique to them. The ways we think about finances are influenced by our culture, as they’re often tied to how we were raised and where our values lie.
No matter what your perspective is, money is an emotionally charged topic, even when you’re only in conversation with yourself.
Brad Klontz, who holds a doctorate in Psychology, explained that money beliefs are also called money scripts, and they subconsciously affect how we make decisions.
The financial psychologist revealed 4 distinct ways that Americans think about money:
1. Money avoidance
According to Klontz, money avoiders perceive money negatively, and it’s those negative thoughts that hold them back from being wealthy and successful.
“It’s where you think having money makes you ‘bad’ or ‘greedy,’” he explained.
He listed off other money-avoidant beliefs, including “Good people shouldn’t care about money” and “People get rich by taking advantage of others.”
2. Money worship
Money worshipers fall on the opposite side of the spectrum from money avoiders. They put wealth on a pedestal as though it were the only thing in life to aspire to.
The phrase “money can’t buy happiness” doesn’t apply to money worshipers, who place value on material objects in the hopes that spending will make them feel good about themselves.
Klontz shared his belief that money-worshiping can lead to overconsumption, which then leads to people spending money they don’t have and going into debt.
3. Money status-seeking
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Money status seekers are similar to money worshipers, yet they focus more on optics than objects. They care about how rich they seem to other people.
They show off whatever flashy new item they own as though it increased their value as a person.
One study actually found that growing up in a financially unstable home was more likely to result in someone interpreting the showy side of wealth as a symbol of status.
Money status-seekers often get trapped in the same cycle of debt as money worshipers, in that they’re trying to keep up appearances and spend money that they don’t actually have.
4. Money vigilance
People in this category spend very little, as their mindset around money is to be very cautious, sometimes, overly so.
They save and invest the money they do have, and are hesitant to spend it, even when they’re financially successful.
Klontz explained that some amount of financial anxiety can be healthy, as it can help people meet their goals and live within their means. Yet people can rely too heavily on money vigilance, creating a sense of dissonance between their belief system and their lived experience.
Klontz noted that looking into the “whys” of our financial beliefs is an important practice so that we can evaluate the roots of our money mindset and shift it if necessary. This is especially prevalent if you grew up with less money than you now have.
“When the context changes and our [money] beliefs don’t change, that’s when it becomes dysfunctional,” he said.
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Klontz recommends maintaining a level of financial transparency and talking to friends and family about money, which can include salaries, budgets, what we spend money on, and how we save money.
Money is often an uncomfortable topic to approach, even with people we’re close with. However, the idea that it’s not appropriate to discuss finances keeps wealthy people wealthy and poor people poor — it’s gatekeeping an element of our lives that touches us all.
The more we discuss our money beliefs, the more normalized those conversations become.
Alexandra Blogier is a writer on YourTango’s news and entertainment team. She covers social issues, pop culture and all things to do with the entertainment industry.
