What views on money did you carry into your life from childhood? Can you change these money mindsets, or “money stories,” as an adult?
Children start corresponding money with value as early as three years old. Since they don’t directly engage with money, it’s how the adults around them engage with and talk about money that really shapes their thoughts about money. So how can we shape children’s money mindsets to be positive and correct the negative money stories we may have as adults?
Kathleen Kingsbury, a Financial Psychologist, says since our brains aren’t fully developed until much later than the day we are born, we develop thoughts that are called “money scripts” and when certain things happen around money, our brains give us these “scripts” which tells us how to act. Financial Psychologist, Brad Klontz, says our beliefs around money are shaped by our family system’s early experiences and that this will predict our financial outcomes. People who grew up poor may have a hard time shaking the belief that they’ll never have enough money. And people who grew up affluent may think that money will solve all their problems—and be gravely disappointed when it doesn’t.
To help shape positive money scripts, it’s a good idea to start talking to children about money as early as possible. And to not push all your financial experiences on them. The good news is, now that you know this, you can choose what you want to pass down to the next generation. Educational moments over time will help shape healthy money stories. Watch the full episode to learn more! This is #YourBrainOnMoney.
What views on money did you carry into your life from childhood? Can you change thes...