“Why Your Childhood Dictates Your Money Habits”
Did you eventually hear your parents communicate the following phrases?
- “Money doesn’t grow on trees!”
- “Rich people are greedy.”
- “We can’t afford that.”
These phrases will govern your spending habits more than investment strategies ever will, and they stem from childhood money scripts.
✅ How your family’s money mindset programmers you (without you realizing it)
✅ 6 common “money personalities”—which one are you?
✅ Science-backed steps to rewrite harmful money beliefs
✅ Free resources from top psychologists to heal your financial trauma
Flash Fact: “Your money habits are 80% psychology, 20% knowledge!”
Section 1: The Hidden Money Blueprint You Inherited
Case Study: The “Scarcity Mindset” Spiral”
- Childhood-They hoarded cash but weren’t able to invest due to fear of loss
- Adulthood-Parents would argue about billing items like it’s a football match
- Result-Expected to save £50k by age 40 but had 0 investments
4 Types of Financial Upbringings
| Upbringing | Childhood traumatizing event |
| — | — |
| Poverty Trauma | Money is evil / Never having enough |
| Underspending | Subconsciously focus to avoid spending |
| Money Focused | Control spending to intentionally save money |
| Habits | Governed by self-inflicted limits |
| New Money Flashy | “The more you spend, the more you succeed in life” | Luxury cars but high-interest credit cards|
| Silent Rich | “They don’t talk about their finances” | Avoids budgeting out of discomfort|
| Abundance-Minded | “Money is to be spent on things that move us forward” | Comfortable negotiating salary or investing engages early.|
🔗 Harvard Study: How Parents Teach Money Habits
Section 2: Which Money Personality Are You?
1. The Avoidant Ostrich
- Characteristics: Don’t keep track of budget, don’t check bank account
- Root Cause: Money = stress (familial discord or fights)
2. The Anxious Hoarder
- Characteristics: Saves too much money at the expense of enjoying life.
- Root Cause: Born in a recession or undergoing constant layoffs.
3. The Reckless Spender
- Characteristics: Buying on impulse for things you do not need aka retail therapy.
- Root Cause: Money was used inappropriately as a means of affection and love.
Flash Quiz: “Do you happen to have a spending hangover and feel guilty after spending? That’s your upbringing instructing you.”
Section 3: Rewiring Your Money Brain (Neuroplasticity Hacks)
Step 1: Give Your Money Story A Name
- ‘My father once said that rich people are evil so he must be right’
Step 2: Create Counter Evidence
- There must be supporting arguments that can claim that rich people do not donate to charity for other than tax loopholes. For instance, there is Warren Buffet who gives away 99% of his earnings.
Step 3: Behavioural ‘Micro Challenges’
- If you identify as someone who hoards: Invest in Child’s Education Plan with £50 this week. – For the spenders: Refrain from Further Spending for 48 hours
🔗 Free Course: Yale’s “The Science of Well-Being” (Financial Happiness Module)
Section 4: Breaking Family Money Curses
1. For Money Equals Families: Money = Stress
- Healing Move: Automating finances (eliminating emotional decisions)
2. For Don’t Talk About Money Families
- Healing Move: Discuss wages with close colleagues (normalise transparency)
3. For Keeping Up With The Joneses Families
- Healing Move: Unfollow luxury influencers (comparison is theft of joy)
Flash Story: “A client of ours said she paid off her £80k debt after realising her spending stemmed from her shopping addiction due to childhood neglect.”
Section 5: Raising Financially Healthy Kids
DO’s:
✔ Allowance paying with savings rules and investing rules
✔ Verbalise: we choose not to spend on this instead of saying we’re poor
DON’Ts:
✖ Reward and punish with money
✖ Completely hide financial problems
🔗 Tool: FDIC’s Money Smart for Young People
Conclusion: Your Money Storyhttps://likewater.shop/2025/03/24/budgeting-for-college-students-a-simple-guide-to-managing-money/ Isn’t Set in Stone
3 Action Steps Today:
1️⃣ Reflect on your earliest memory of money
2️⃣ Identify one self-imposed chain to change this month
3️⃣ Send this article to people who you think would benefit from it
Recall: “You are not to blame for your childhood money traumas…but you are responsible for the healing.”