How childhood shapes attitudes toward money: lessons from "Game of Thrones" for the investor

Have you ever experienced that despite all your knowledge about diversification and long-term planning, you impulsively buy shares of a "hot" company at some point, and then sell them with the same zeal at the first correction? Have you ever wondered why you do this? Or why you avoid the stock market for years, preferring to keep your money only on deposit, although inflation often eats up all the income? The answer to these questions lies not only in the economic news or even in how you interpreted it, but in how you "see" money - in your unconscious beliefs. These are called Money Scripts - Money Scripts. Let's analyze them using the examples of characters from the TV series "Game of Thrones".

"The Lannisters always pay their bills" - that phrase from Game of Thrones isn't just a family motto or a nice line. It's a money script - a deeply ingrained unconscious belief about finances that is passed down from generation to generation and influences our decisions.

Research by psychologists Bradley Klantz and Sonia Bradley in Financial Psychology shows that these scripts are laid down in childhood and through specific mechanisms.

First, through observing parents: have you ever seen parents constantly arguing over money? Or, on the contrary, how they demonstrate wealth, spending money without counting? And what is behind the arguments or "throwing around" - maybe hidden real problems?

Secondly, through monetary traumas: loss of a job by one of the parents, bankruptcy, a sharp decline in the standard of living - these events leave a deep emotional trace on the family and, as a consequence, on the child. Without realizing it, he grows up, but the trace remains.

And third, through direct instruction: direct stories or parentally broadcasted principles. For example: "Money is the root of all evil" or "Rich people are always dishonest".

In the financial market, scripts - these unconscious beliefs - come to the fore, often leading to irrational decisions - ones that may be contrary to long-term goals.

Childhood experiences, behavioral patterns are schemes, scripts by which we act in everyday reality. The more a pattern "works", the more it becomes ingrained and dominant. When this experience cannot be called positive, money disorders, a kind of "money behavior disorders," appear. They are based on dysfunctional money scripts: Klantz and his co-authors identified four main groups.

1. Money Avoidance: Robert Baratheon. Formally, the 17th ruler of the Seven Kingdoms had virtually unlimited resources - royal power, the crown's revenues. However, money had no independent value for him, but was associated with a tedious duty. Robert actively avoided managing finances, despised calculation and preferred to delegate responsibility to others, which led the Iron Throne to huge, uncontrollable debts to the Lannisters and the Iron Bank.

Such people are subconsciously convinced that money is evil, a source of conflict; or that they do not deserve to have wealth. They tend to interact less with finances, which in investments manifests itself as passivity or inactivity (Holding Back) - refusal to invest, to study the markets. And, as a consequence, they keep their funds in low-yielding accounts. They assess the risk of loss as unacceptably high.

For Baratheon, such avoidance became critical and undermined the stability of the kingdom.

2. Money Worship: Petyr "Littlefinger" Baelish. For him, money and influence were almost complete synonyms, therefore an absolute object of worship. Coming from a parentless family, he believed that financial and political accumulation (through running customs, brothels and intrigue, including financial intrigue) would provide him with the power, security and status he sought. His investments were always risky and speculative (manipulating the debts of the Crown), based on the belief that greater wealth would get him everything, even the kingdom, regardless of the ethical costs.

This script is based on the belief that only a large amount of money or the power it brings can provide happiness, success and solve all problems. Therefore, money-loving investors are obsessed with maximizing and/or quickly enriching themselves. They focus on "hot" success stories and rumors, which leads to investing in speculative, risky assets (overvalued IPOs, "HYIP" trends) and trying to "beat the market" at the cost of portfolio stability.

3. Money Status: Cersei Lannister. For her, demonstrating the unshakeable wealth of her House was synonymous with power and personal worth, personal triumphs and a symbol of survival through the ages. Her entire policy was to maintain that status and the illusion of financial superiority, even when the Crown and her House were deep in debt. She used risky loans (including the Iron Bank of Braavos) and costly military campaigns not so much for economic good but for a show of strength to compensate for her vulnerability.

In such people, self-esteem is strongly "tied" to money: the greater the net worth of assets possessed and the greater the spending of money to impress others, the higher the self-esteem. Such people invest to tout their successes. Their decisions are subject to Fear Of Missing Out, Fear Of Missing Out, FOMO - they act on the principle to assure themselves that they are not missing an opportunity that can raise their status. As a result, they tend to buy on the high and sell on the panic.

4. Money Vigilance - Money Vigilance: Tyrion Lannister. Unlike his kin, he constantly emphasized the importance of knowledge and calculation over immediate successes and displays of power. As Master over the Moneta, i.e. Minister of Finance, he was extremely cautious, scrupulously first examining the financial situation and then painstakingly managing limited resources and debts. He realized that the security of the Lannisters and the Crown lay not in wealth (much less contrived wealth) but in careful risk control and strategic planning. His vigilance in finances was not motivated by fear of possession, but by a desire for maximum security and stability in an unpredictable world.

His father, Tywin Lannister, behaved similarly. He was generally extremely secretive in business, so he was cautious in finances and rather focused on accumulating wealth and enhancing the reputation of House Lannister. He used wealth not so much as an investment, but as an annuity and a guarantee of security for the family.

This script manifests itself in sometimes excessive caution, secrecy, and reluctance to share financial information. While vigilance can be useful, in excess it leads to irrational conservatism. Such investors build portfolios dominated by bonds or low-yielding assets, even with long investment horizons. They are highly susceptible to the Loss Aversion effect described by Kahneman and Tversky in 1979: the pain of losing $1000 is greater than the joy of winning $1000. As a result, their fear of risk prevents the portfolio from performing at its full potential.

These scripts are not a judgment and they are not ironclad. Yes, you cannot change your past, but you can change its influence on you. Since we have already shown that these scripts are beliefs, it is possible to change the scripts by changing the way you think, the way you think. This process is called cognitive restructuring - Cognitive Restructuring. By the way, it is also the basis of cognitive-behavioral therapy.

1- Awareness - Identification. There are questionnaires in nature for money scripts (yes, yes), they will help to identify the very beliefs and rules that operate from the subconscious mind. Or you can start by simply keeping a "financial diary" - every time you make an impulsive or irrational financial decision, write down - what did you feel and what belief about money was "playing somewhere in the background" when you made the corresponding decision?

2- Challenging - Challenge: When you have identified a script (e.g., "Wealth is dangerous"), you can ask yourself:

You have to answer yourself honestly.

3. Creating a new script. If and when you figure out and become convinced that your existing beliefs are not the truth in the last instance, you can develop new, functional beliefs. For example, instead of "I should save every penny" (vigilance), invite yourself to consider and then put into practice "I invest with my long-term plan in mind and sleep well".

Instead of a conclusion: the way you handle and invest your money reflects your psyche. By understanding your money scripts, you'll stop trying to fight the market and start working in harmony with your goals and values. And that is the key to true, sustainable financial success. And also longevity like Warren Buffett.

This article was AI-translated and verified by a human editor