Trending
Written by: Riley Saunders
Many people are unaware that their financial behaviors, attitudes, and beliefs — what are often referred to as "money scripts" — are shaped not only by personal experiences but also by family history. The idea that "money doesn’t grow on trees," for instance, may not just be a parental colloquialism; it could be a deep-rooted belief passed down over generations. To better understand these inherited beliefs and break free from limiting money behaviors, financial advisors and individuals can use a valuable tool: the genogram.
What Is a Genogram?
A genogram is a visual map of a family, resembling a family tree but with additional layers of information about relationships, behaviors, and patterns. It can capture details like marriage, divorce, career choices, and even emotional bonds or rifts between family members. When tailored to explore financial behaviors, a genogram can help map out patterns of wealth accumulation, spending, debt, financial anxiety, or even prosperity across generations.
By drawing a genogram, individuals can uncover how past generations’ financial decisions and experiences influence their current money scripts. This visualization allows people to see beyond their immediate family and identify generational trends, whether positive or negative, that shape their financial worldview.
How Genograms Help Uncover Money Scripts
Money scripts are often subconscious beliefs developed in childhood and passed down from one generation to the next. These beliefs drive our financial decisions in adulthood, sometimes in ways that may not serve our best interests. Common money scripts include ideas such as "money is the root of all evil," "more money will make everything better," or "I’ll never be financially secure."
When creating a genogram, financial advisors can guide clients in identifying family members' financial struggles or achievements, patterns of financial support or neglect, and the language used around money. For example, if multiple generations have struggled with debt or financial instability, it may indicate a money script rooted in scarcity or fear of spending. Alternatively, a family history of entrepreneurship may foster beliefs that taking financial risks is normal or even expected.
Facilitating Deeper Financial Awareness
A genogram serves as more than just a map; it is a conversation starter for deeper self-awareness. I cannot stress this point enough. By examining the financial choices made by parents, grandparents, or even great-grandparents, individuals can see how their own money scripts align or differ from those of their relatives. It enables people to question long-held beliefs and determine if those scripts are useful in their current financial life or need to be rewritten.
For example, if a client discovers that their fear of investing stems from a grandparent’s bankruptcy during the Great Depression, they can begin to challenge that belief in light of today’s economic realities. This new understanding creates an opportunity to adopt healthier financial behaviors and make more informed choices. Additionally, you may find that building out your genogram can help promote healthy conversations between you and your family members, beginning with peeling back the layers of complexity that derives their money scripts.
The Role of Financial Advisors in the Process
Financial advisors can play a key role in helping clients create and analyze their genograms. By facilitating discussions about family history and exploring the origins of clients’ money scripts, advisors can offer insights that go beyond numbers and financial plans. This process not only helps clients make better financial decisions but also fosters a deeper, more holistic advisorclient relationship.
Conclusion
Understanding your own money scripts is crucial for financial well-being, and creating a genogram is a powerful way to uncover the origins of your financial attitudes. By identifying and challenging inherited money beliefs, you can adopt healthier financial behaviors and begin to understand your family dynamics at a much deeper level. This tool not only provides valuable insights but also empowers individuals to rewrite their financial narratives—one generation at a time.
Related: What Separates Great Financial Planners? Exceptional Service
Riley Saunders is a registered representative offering securities through Osaic Wealth, Inc., member FINRA / SIPC, and an investment advisor representative with Cassaday & Company, Inc., a registered investment advisor not affiliated with Osaic Wealth, Inc.