Money Mammoth

A look at the psychological barriers to financial success and how to create a better financial future

When it comes to our relationship with money, we are in the Stone Age. Despite the relentless barrage of information and warnings from financial experts, the average American is in terrible financial shape. It turns out that human beings are just not wired to do the right things around money—such as saving and not overspending. That’s why financial success is so difficult to attain. When it comes to our financial instincts, we are no more evolved than our ancestors who hunted the Woolly Mammoth 400,000 years ago.

Recent findings from the field of financial psychology could help the many Americans who know what they need to do but just can’t seem to make it happen. If you fall into this category, consider Money Mammoth: Evolve Your Money Mindset and Avoid Financial Extinction.

This book looks at financial well-being from a psychological and evolutionary perspective. It reveals the obstacles that prevent people from taking their first critical steps towards financial wellness. It examines how our instincts and beliefs about money influence our financial behaviors. It explores money beliefs, how they develop, and how they drive our money behaviors

As the world’s leading experts in financial psychology, authors Dr. Brad Klontz, Dr. Ed Horwitz, and Dr. Ted Klontz can help you:

• Discover how the experience of your ancestors are impacting your finances
• Understand how your friends, family members, and tribe may be holding you back
• Overcome mental roadblocks to wealth and success
• Harness the power of your emotional brain to transform your relationship with money
• Build confidence in your ability to take control of your financial future

In Money Mammoth, the authors reveal the secrets to harnessing the power of your psychology to reach your financial goals.

About the Authors xiii

Foreword xvii

Introduction xxi

Part I Your Origins 1

Chapter 1 Your Ancestors 3

The Ancestor Room 4

So What’s in Your Ancestry Room? 6

Why Aren’t You Rich? 7

Death to Savers 8

Notes 10

Chapter 2 Your Parents 11

Your Parents 12

Become Your Own Anthropologist 13

When Money Helps 14

When Money Hurts 15

Financial Enmeshment 15

A Family Story of Financial Destruction 16

Parents Know Best? 19

The 2008 Housing Crisis 19

Notes 21

Chapter 3 Your Children 23

Can Money Make You Insane? 24

Were You a Spoiled Child? 25

The College Admissions Scandal 26

Money Is a Powerful Reinforcer 28

Humans Are Lazy 29

Financial Enabling and Financial Dependence 30

Cutting the Financial Umbilical Cord: Five Steps 31

Raising Financially Healthy Children 33

It’s Not So Simple 34

A Big Heads-Up 35

Quick Start Tips for Healthy Financial Habits 35

Allowances 36

A Family Allowance 38

Talk About Money (But Not Too Much) 38

Notes 40

Chapter 4 Your Mate 43

Genetic Differences? 44

The Giver versus the Saver 44

Interdependence versus Independence 46

Booby Traps 50

Where from Here? 50

How Are You Doing with Money? 51

Finding the Right Kind of Help 52

The Conversation Intervention 52

Setting the Stage 53

Notes 55

Chapter 5 Your Tribe 57

Your Extended Family 57

The Hill 57

What Saves You May Kill You 58

Relative Deprivation 59

How Can We Keep Them Down on the Farm 59

What the Tribe Expects 60

The Modern-Day Tribe—Risk Sharing 61

Feeling at Home in Our Tribes 63

Your Tribes 64

Tribal Influence 65

Tribal Entitlement 66

How Tribes Handle Success 67

Professions as Tribes 69

Jim’s Reality Meets Professional Reality 69

Kill Dr. Phil 70

When Should You Seek a New Tribe? 71

Using Tribal Expectations to Evolve 73

Alex Harnesses His Money Mammoth 74

Notes 75

Part II Your Adaptations 77

Chapter 6 Your Instincts 79

Martha and Her Instincts 84

Tom and His Instincts 84

Overcoming Mindsets 85

Our Money Mindsets 85

Our Financial Instincts Toward Savings 86

Our Anti-Hoarder Bias 87

The Give-Away 87

The Modern Savers 88

The Drive to Share Is Hardwired 89

Our Subconscious Co-Pilot 89

Behavioral Finance 90

Notes 98

Chapter 7 Your Environment 101

Demographic Community 102

School Size and Diversity 103

Community Job Environment 103

Jason’s Story 104

Economic Timing 105

The Story of Rick and Carrie 106

The Belief Stew 108

The Anchor of Your Past 109

Your Chosen Environment 109

Who Takes Care of You? 110

Note 115

Chapter 8 Your Financial Flashpoints 117

Ancestral Flashpoints 117

Family Financial Flashpoints 119

Your Financial Flashpoints 120

Cultural Flashpoints 122

Filling in the Blanks 123

Coronavirus Flashpoint 124

Depression Flashpoint 125

Flashpoint Context and Growth 126

Conclusion 127

Notes 129

Chapter 9 Your Money Scripts^® 131

Money Scripts^® 132

The Klontz Money Script^® Inventory 134

Scoring Procedures 137

Analysis 137

Changing Our Money Scripts^® Can Be Tough 139

Rewriting Your Money Scripts^® 140

Chapter 10 Your Financial Behaviors 143

Financial Behaviors 143

Financial Behavior Change Strategies 151

Notes 157

Part III Your Evolution 159

Chapter 11 Your Transformation 161

Six-Step Process of Change 161

Change in Action: Results of a Field Trial 163

The Employee Retirement Plan Meeting Dilemma 164

Tell Me a Story. Paint Me a Picture. Show Me! 170

Summary 173

Notes 174

Chapter 12 Your Vision 175

Avoid the “When-Then” Trap 175

Discovering Who You Are 176

Achieving Your Financial Goals 178

What We Found 179

What This Means: Seven Steps to Achieve Your

Financial Goals 179

BONUS Tip: Social Pressure 183

Summary 183

Note 184

Chapter 13 Your Relationship 185

1. Assume 100% Responsibility for Your 50% 185

2. Speak Your Truth 186

3. Listen Now or Pay Later 187

4. Know the Odds 188

5. Love Is Not Enough 189

6. Love Thyself 190

7. No Carry-on Baggage Allowed 191

8. Beware of Invaders 193

9. Children Need Not Apply 194

10. Safety First 194

Exercise: Creating Your Relational Financial Vision 195

The Shared Vision Process 196

Notes 199

Chapter 14 Your Plan 201

Are You Ready to Take Action? (It’s Okay If You’re Not) 202

Money Mammoth Evolutionary Path 203

Start Here: Building Your Mammoth Foundation 203

Survival 204

Hunting and Gathering 221

Adaptation versus Extinction 227

Progress Measurement Tools 230

Notes 231

Chapter 15 Your Success 233

Your Financial Survival Guide 234

Your Evolution 239

Becoming Your Money Mammoth 241

It Is Your Time to Evolve 241

The Blue Pill or the Red Pill 243

Index 247

BRAD KLONTZ, PSY.D, CFP, is a Certified Financial Planner and a financial psychologist who helps individuals and families understand their views about money. He is Associate Professor of Practice in Financial Psychology and Behavioral Finance at Creighton University's Heider College of Business.

EDWARD HORWITZ, PHD, CFP, FBS, is a Certified Financial Planner and a Financial Behavioral Specialist with expertise in financial planning, risk management, and creating financial psychology solutions for organizations. He is an Associate Professor of Practice at Creighton University's Heider College of Business and holds the Mutual of Omaha Chair in Risk Management.

TED KLONTZ, PHD, is Associate Professor of Practice in Financial Psychology and Behavioral Finance at Creighton University's Heider College of Business and a founder of the Financial Psychology Institute.

Written by renowned financial psychologists, professors, and certified financial planners, Money Mammoth shows readers how to change the behaviors and impulses that lead them financially astray. Full of actionable advice and practical strategies designed to help the average person achieve financial independence, the book acts as a guidepost for those who wish to take control of their personal finances and money relationships. Whether you're a hopeless spendthrift or hopelessly thrifty, Money Mammoth will help you save and enjoy your money.

The book is written in three parts, each of which is designed to assist you in reaching a destination of financial well-being. From identifying the sources of your less-than-optimal behaviors to showing you how you can take steps to change those behaviors into something more useful, Money Mammoth is a how-to guide for permanently improving your relationship with money.

Even as the authors provide sophisticated psychological information about the causes of our financial stress, the book remains approachable and highly engaging. You'll learn about topics as varied as the psychological biases that infect our thinking about money and the evolutionary origins of those biases, all while enjoying the authors' highly practical and readable approach.

Perfect for anyone who hopes to regain control of their credit, accounts, and financial behavior, as well as those who just need to brush up on the basics of personal finance, Money Mammoth also belongs on the bookshelves of everyone with a curiosity about the intersection of psychology and our relationships with money and finance. The book is a must-read amongst financial planners and professionals seeking a better understanding of some of the psychological underpinnings of the behaviors they see in their clients every day.

Improve your relationship with money in this approachable, one-stop, personal finance resource

Do you struggle with your personal finances? Do you spend (or save) too much? Do you struggle with your money relationships and communicating about money issues with your children, parents, or spouse? Money Mammoth offers you a fresh and effective approach to managing your money. Incorporating lessons from psychology, behavioral economics, and financial planning, the distinguished authors lay out a step-by-step plan to understanding your financial behaviors and changing them for the better. The book is a must-read for anyone who desires to improve how they save, spend, share, donate, and invest money.

Full of applicable strategies and concrete, real-life advice for everyday spenders and savers, Money Mammoth shows readers how deep-seated evolutionary and psychological roadblocks can subtly interfere with their best financial intentions. The book goes on to describe how to overcome those roadblocks, using tried-and-true behavioral tricks to change your negative practices into positive ones.

Written for anyone who hopes to reboot their relationship with money and for those who just need to brush up on the basics of responsible financial behavior, Money Mammoth is also ideal for those with a curiosity about the intersection between psychology, economics, and personal finance.