If you struggle with getting your financial house in order, you may feel that what you need is more information on how things like stocks or IRAs or budgets work. However, my guest today would say that what you actually need most of all, is a better understanding of the relationship that your parents’ and even your grandparents’ had with money, and how the “money scripts” they’ve passed down to you have affected your own thinking about finances.
His name is Brad Klontz; he’s a psychologist who specializes in money issues and the author of Mind Over Money: Overcoming the Money Disorders That Threaten Our Financial Health. We begin our conversation discussing what Brad calls the Big Lie in personal finance. Brad then explains how money scripts form in your childhood, and can keep you from making progress with your finances in your adulthood. We dig into why you can feel shame over being both poor and rich, why it’s hard to move ahead from the socio-economic status you came from and easy to get dragged back into a financial comfort zone, and how you can break out of old ingrained patterns. We end our conversation with how to be more intentional about the money scripts you’re passing down to your own kids, including why you shouldn’t tell them, “We can’t afford that.”
- Why psychology has largely ignored the topic of money/spending
- What’s the Big Lie of personal finance advice?
- Why there’s so much shame connected to personal advice
- How money scripts/events that get passed down generation to generation
- The way relationships can get us into a financial comfort zone (and why it’s hard to change)
- What’s going on when we avoid money?
- What happens when people grow up with a lot of money?
- How to handle money friction in family/friendship settings
- What’s going on with money-worshipping scripts?
- What is relative deprivation?
- How to pass good money scripts to your kids (and avoid passing on the bad ones)
Resources/People/Articles Mentioned in Podcast
- What Every Young Man Should Know About Student Loans
- A Guide to Paying Back Your Student Loans
- What Every Young Man Should Understand About the Power of Compound Interest
- How to Think About Money
- 4 Money Tips From 4 Personal Finance Legends
- AoM’s Personal Finance archives
- How to Be Manager to Your Friends and Peers
- Lifestyles of the Rich and Famous
- Raising Kids Who Are Grounded, Generous, and Smart About Money
- Making Your Kid a Money Genius
Connect With Brad
Listen to the Podcast! (And don’t forget to leave us a review!)
Recorded on ClearCast.io
Listen ad-free on Stitcher Premium; get a free month when you use code “manliness” at checkout.
Read the Transcript