Psychology of Financial Planning

Chapter 4Money Scripts: Exploring a Client's Beliefs About Money

In our attempts to make sense of our financial flashpoints, we develop beliefs about money called money scripts. Often these beliefs about money are partially true, incomplete, and conflicting, but subconsciously followed in adulthood.¹ Identifying one's money scripts can be an important part of understanding an individual's financial psychology.

Figure 4.1 Klontz‐Chaffin Model of Financial Psychology

Exercise 11: The Klontz Money Script Inventory–Revised (KMSI‐R)

There is a strong link between money scripts and financial outcomes. The Klontz Money Script Inventory was developed to help people discover their money scripts. It has been researched extensively and scores on the KMSI have been found to be associated with income, net worth, credit card debt, socioeconomic status in childhood, financial behaviors, and other aspects of financial health.^2,3

For many people, discovering and exploring their money scripts are important steps in increasing their income, net worth, and financial health. The KMSI offers a valid, efficient, and reliable tool to help measure money beliefs and attitudes.⁴ In the revised version of the test, there are 32 money statements that fall into four categories: (1) money avoidance; (2) money worship (often referred to as money focus when used in a financial planning context); (3) money ...