What is your money story? How our beliefs shape the way we handle money

We all have a story about money. Understanding where it comes from can help us make better financial decisions - and help young people develop healthier relationships with money.

“Money doesn’t grow on trees.”

“Save your money for a rainy day.”

“Rich people are greedy.”

“Money can’t buy happiness.”

These familiar sayings might sound harmless, but they carry messages about money, work, saving, spending and success. Over time, these messages can become part of how we think about money and influence the financial decisions we make.

For teachers, financial educators and parents, understanding these beliefs offers a valuable opportunity. Financial education isn't just about teaching young people how to budget, save or calculate interest. It's also about helping them understand the beliefs and attitudes that influence their choices.

We all have a money story

Our money stories develop through a combination of experiences, observations and messages we receive throughout our lives. Family plays an important role. Young people might observe parents comparing prices at the supermarket, discussing household bills, saving for a holiday or worrying about unexpected expenses. They may also notice when money is a source of tension or a topic that nobody discusses.

These experiences can communicate powerful messages, even when adults don't intend to teach a financial lesson. For example, someone who grew up in a household where money was scarce might learn to save every dollar because financial security feels fragile. Someone else might learn that money should be spent enjoying life today because tomorrow is uncertain.

Neither experience automatically leads to good or bad financial decisions. However, the beliefs we develop can influence how we respond to financial opportunities, challenges and uncertainty. Our money stories can also change as we grow older. Starting work, experiencing financial hardship, buying a home or becoming responsible for a family can challenge beliefs we have held for years.

What are money scripts?

Financial psychologists Brad Klontz and his colleagues developed the concept of money scripts to describe underlying beliefs about money that can influence financial behaviour. In their 2011 study, Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory, the researchers examined money-related beliefs and identified four broad patterns: money avoidance, money worship, money status and money vigilance.

These scripts are not personality types, and people may recognise aspects of several patterns in themselves. They are better understood as a framework for exploring the assumptions we bring to financial decisions. Importantly, a belief that once helped someone navigate a difficult situation may not always serve them well in different circumstances.

Understanding money scripts gives educators a way to move beyond asking, “What is the right financial decision?” and explore another question: “What beliefs might influence the decision someone makes?”

The four Klontz money scripts

1. Money avoidance: “Money is bad.”

People who hold money-avoidance beliefs may associate wealth with greed or corruption, feel uncomfortable discussing money, or believe that wanting financial success is somehow wrong.

In practice, this might mean avoiding bank statements, feeling uncomfortable negotiating a salary or putting off important financial decisions.

For young people, an educator might explore how messages about wealth and greed influence their attitudes towards earning money, investing or choosing a career.

2. Money worship: “More money will make everything better.”

Money-worship beliefs centre on the idea that more money will bring happiness, solve problems or provide lasting satisfaction.

This might appear in the belief that a higher salary will resolve every financial worry, or that earning more is always preferable to having more time or flexibility.

Young people encounter similar messages through advertising, social media and images of successful lifestyles. Educators can encourage them to consider the relationship between money, wellbeing and personal priorities.

3. Money status: “My worth depends on how much I have.”

Money-status beliefs connect financial success with self-worth, social standing or the possessions someone owns. These beliefs can influence spending decisions, particularly when people feel pressure to keep up with friends or display a particular lifestyle.

For teenagers, this might involve buying expensive clothing, upgrading a phone or spending money to fit in with a peer group.

Financial education can help young people recognise social pressures, distinguish between needs and wants, and consider whether a purchase reflects their own priorities or an attempt to meet other people's expectations.

4. Money vigilance: “I must always be careful with money.”

Money-vigilance beliefs emphasise saving, financial responsibility and preparing for uncertainty. These attitudes can support positive financial behaviours, such as building emergency savings and avoiding unaffordable debt. However, when taken to an extreme, they may also contribute to anxiety, secrecy or difficulty spending money even when it is affordable.

An educator might invite young people to consider why saving matters, while also discussing how money can be used to meet present needs and enjoy life.

These four scripts illustrate an important point: financial beliefs can have both helpful and unhelpful consequences, depending on the circumstances.

Where do our money stories come from?

Family experiences are one influence, but money stories are shaped by much more than what happens at home. Culture, community expectations, socioeconomic circumstances, advertising, social media and significant life events can all contribute to how we understand money. A young person who has experienced financial insecurity may place a high value on having savings. Another may have observed that expensive possessions attract social recognition. Someone else may have learned that discussing household finances is private and inappropriate.

Educators need to recognise that these beliefs emerge in different circumstances. A young person's financial behaviour cannot be understood simply by looking at their choices without considering their access to resources and their experiences.

This is particularly important in the classroom. Activities that ask students to share household income, family debt or personal financial difficulties can create unnecessary pressure or embarrassment.

Instead, educators can use fictional scenarios, familiar sayings and hypothetical decisions to explore money beliefs without requiring young people to disclose private information.

Can we rewrite our money story?

The purpose of exploring money scripts isn't to categorise people. It's to create opportunities to reflect on our assumptions and decide whether they remain useful.

Educators can introduce this process through a few simple questions:

• What messages have I received about money?
• Where might these beliefs have come from?
• How might they influence a financial decision?
• Are there circumstances in which this belief might not be helpful?
• What other perspectives could I consider?

For example, consider the belief that “you should never borrow money”. This might be a useful reminder to avoid unaffordable debt. However, it doesn't account for the different purposes and risks associated with borrowing, such as a mortgage, a student loan or high-cost consumer credit.

Rather than replacing one absolute rule with another, educators can help young people examine the circumstances, costs, risks and alternatives involved in a financial decision. The same process can be applied to spending, saving, investing and earning. Over time, recognising our money stories can help us make more deliberate decisions rather than automatically following beliefs we have never questioned.

Starting new money conversations

Teachers and financial educators have an opportunity to make money conversations more thoughtful, inclusive and relevant to young people's lives.

Parents are educators, too. The everyday choices they make and the messages they share can help young people develop their understanding of money long before they encounter formal financial education at school.

One simple classroom activity is to present students with a selection of familiar money sayings, such as “money can't buy happiness”, “always save before you spend” or “you need money to make money”. Ask students to consider what each statement suggests about money. Is it always true? When might it be helpful? When might it be misleading?

There doesn't need to be one correct answer. The value lies in examining the reasoning behind different perspectives.

Money stories remind us that financial capability involves more than knowing financial facts and performing calculations. It also involves understanding ourselves, recognising influences on our decisions and evaluating our options.

By helping young people explore the stories they hear and the beliefs they develop, educators can give them another tool for making informed financial decisions throughout their lives.

After all, financial education isn't just about teaching young people what to do with money. It's also about helping them understand why they make the choices they do.

Reference list:

1. Klontz, B., Britt, S. L., Mentzer, J., & Klontz, P. T. (2011). Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory. Journal of Financial Therapy, 2(1). 

2. Klontz, B. T., & Britt, S. L. (2012). How Clients’ Money Scripts Predict Their Financial Behaviors. Journal of Financial Planning. 

3. Lawson, D., Klontz, B., & Britt, S. (2014). Money Scripts. In Financial Therapy. Springer.