Money scripts

Sources:

Brad Barrett has discussed the topic of money scripts extensively, particularly in the context of personal finance and teaching financial lessons to children.

Key Highlights:

  1. Teaching Kids Money: Brad Barrett highlights the challenges parents face when teaching their children about money. Using tactics like the three jars method might not work for everyone. Understanding money scripts can help address a child's inclination toward behaviors like high spending, as seen in the case of a father trying to educate his ADHD son who tends to spend his birthday money quickly. This approach acknowledges the individual financial behaviors encoded in us, and adjusting them can be more impactful than simple tactics 1.

  2. Choosing Money Over Happiness: In a conversation with Amy Minkley, Brad discusses how deeply ingrained money scripts can affect life choices. Amy chose a high-paying job in Bangkok primarily for financial reasons, driven by her money scripts, only to realize the move negatively affected her happiness. This example sheds light on how money scripts can drive decisions even when they don't align with our deeper desires for contentment and well-being 2.

  3. Societal Norms and Financial Independence: Brad explores how societal norms and preconceived financial scripts can lead us into long-term financial journeys we don't necessarily want. He questions traditional short-term financial education, advocating instead for teaching long-term investment strategies to children to better align with true financial independence principles 3 4.

    Teaching Kids Money

    A father shares his struggles and successes in teaching his son about money, exploring different tactics and learning about money scripts. The hosts discuss the challenges of passing on financial lessons to children and emphasize the importance of mindful teaching.
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  4. Overcoming Money Anxiety: Amy Minkley and Brad Barrett discuss how anxiety about money stems from scripts developed early in life, such as the need to save excessively to feel secure. Amy shares her life experience of being a super saver, driven by her childhood mindset, which ultimately led to burnout. This underscores the importance of re-evaluating and adjusting our money scripts to achieve a healthier balance between financial security and enjoying life 5.

These clips and discussions from the podcast "ChooseFI" illuminate the significant impact of money scripts on financial behavior and decisions, revealing both challenges and strategies for overcoming them.

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