Glossary of Financial Therapy terms
The first of its kind glossary of Financial Therapy terms, in alphabetical order, all in one place!
A
1. Affluence – State of having abundant wealth. Example: After her IPO, she lived in affluence.
2. Anchoring Bias – Relying too heavily on first information when making money decisions. Example: He anchored his salary expectations to his old job.
3. Assets – Resources with economic value. Example: Her house and stocks are her biggest assets.
4. Attachment Style – Patterns of relating that influence money behavior. Example: His avoidant style made him avoid budgeting.
B
5. Behavioral Economics – Study of psychological influences on financial choices. Example: Loss aversion is explained by behavioral economics.
6. Behavioral Finance – Application of psychology to investment and spending behavior. Example: Behavioral finance explains panic selling.
7. Boundaries (Financial) – Limits on lending or giving money. Example: She set a boundary with her brother about loans.
8. Budgeting – Planning income and expenses. Example: Monthly budgeting reduced her overspending.
9. Burnout (Financial) – Exhaustion from money stress or overwork. Example: He faced burnout after juggling three jobs.
C
10. Capital – Money or assets used for investment. Example: She raised capital for her startup.
11. Cognitive Distortions – Inaccurate thought patterns about money. Example: “I’ll never be good with money” is a distortion.
12. Compensation – Payment received for work. Example: She negotiated fair compensation.
13. Consumption Guilt – Feeling guilty for spending on oneself. Example: He felt guilt after buying new shoes.
14. Credit Stress – Anxiety around debt and borrowing. Example: She avoided checking her credit score due to stress.
15. Cultural Money Narratives – Shared beliefs shaped by culture/history. Example: Post-communist narratives shaped his scarcity mindset.
D
16. Debt Cycle – Pattern of borrowing and repayment. Example: Payday loans trapped him in a debt cycle.
17. Debt Shame – Embarrassment tied to debt. Example: She hid her student loans due to shame.
18. Dependency (Financial) – Reliance on someone else’s money. Example: Financial dependency kept her in a toxic marriage.
19. Diversification – Spreading investments to reduce risk. Example: His diversified portfolio weathered the crash.
E
20. Equity (Workplace) – Fairness in pay/opportunity. Example: The company promoted pay equity.
21. Expressive Writing – Journaling to process money emotions. Example: Writing helped her reduce money shame.
F
22. Financial Abuse – Controlling or exploiting someone financially. Example: He withheld her access to bank accounts.
23. Financial Anxiety – Chronic worry about money. Example: She felt anxious even with savings.
24. Financial Attachment – Emotional bond with money. Example: His anxious attachment fueled overspending.
25. Financial Avoidance – Avoiding money tasks. Example: He ignored bills for months.
26. Financial Behavior Tracking – Logging money actions and feelings. Example: Tracking showed she spent more when lonely.
27. Financial Burnout – Exhaustion from constant financial stress. Example: Overwork led to financial burnout.
28. Financial Coaching – Guidance on money goals (not therapy). Example: Her coach helped with debt payoff.
29. Financial Enmeshment – Blurred boundaries with family and money. Example: Parents demanded access to her finances.
30. Financial Flashpoints – Traumatic money events shaping beliefs. Example: Growing up in hyperinflation created scarcity fears.
31. Financial Genogram – Family tree mapping money dynamics. Example: The genogram showed generational debt cycles.
32. Financial Goals – Desired outcomes with money. Example: Buying a home was her goal.
33. Financial Identity – How money shapes self-concept. Example: Bankruptcy shook his financial identity.
34. Financial Independence – Living without employment income. Example: She reached independence by age 45.
35. Financial Infidelity – Hiding money issues from a partner. Example: He had secret gambling debt.
36. Financial Literacy – Understanding money basics. Example: Literacy improved her investing confidence.
37. Financial Literacy Gap – Unequal access to money knowledge. Example: Marginalized groups face larger gaps.
38. Financial Resilience – Ability to recover financially. Example: Her emergency fund gave resilience.
39. Financial Sabotage – Damaging financial stability (self/other). Example: He gambled away savings.
40. Financial Secrecy – Hiding financial info. Example: She concealed credit card debt.
41. Financial Shame Spiral – Cycle of shame-driven avoidance. Example: Shame stopped him from opening bills.
42. Financial Stress – Emotional strain about money. Example: Bills triggered financial stress.
43. Financial Therapy – Integration of finance + psychology to heal money relationships. Example: Therapy helped her price services fairly.
G
44. Generational Wealth – Assets passed down in families. Example: He used generational wealth to fund school.
45. Generosity Guilt – Guilt when spending on self. Example: She felt guilt buying a gift for herself.
H
46. Hedonic Adaptation – Returning to baseline happiness after gains. Example: The joy of a new car faded fast.
47. Hyperinflation Trauma – Long-lasting effects of inflation crises. Example: Parents hoarded food after hyperinflation.
I
48. Impulse Spending – Buying without planning. Example: Stress led to impulse shopping.
49. Intergenerational Transmission of Wealth – Passing down money beliefs/wealth. Example: His family passed down both assets and scarcity fears.
L
50. Loss Aversion – Preferring to avoid loss over equivalent gain. Example: Loss aversion kept her from investing.
M
51. Mindfulness (Financial) – Awareness of feelings during money choices. Example: Pausing mindfully curbed her overspending.
52. Money Anxiety – Distress tied to finances. Example: He lost sleep over bills.
53. Money Avoidance (Script) – Belief money is bad/undeserved. Example: She underpriced her services due to avoidance.
54. Money Boundaries – Limits around money sharing. Example: He declined a loan request politely.
55. Money Scripts – Unconscious money beliefs. Example: “Money is power” was his script.
56. Money Shame – Feeling unworthy about money. Example: Bankruptcy fueled her shame.
57. Money Status (Script) – Linking self-worth to net worth. Example: He always bought the newest gadgets.
58. Money Trauma – Lasting impact of financial crises. Example: Losing his home created trauma.
59. Money Vigilance (Script) – Extreme frugality/saving anxiety. Example: She hid her savings and worried constantly.
60. Money Worship (Script) – Belief more money solves all problems. Example: He thought wealth alone would bring happiness.
N
61. Negotiation Anxiety – Fear of money discussions. Example: Anxiety kept her from asking for a raise.
O
62. Overidentification with Success – Tying worth solely to achievement. Example: Layoff crushed his self-esteem.
P
63. Pay Equity – Equal pay for equal work. Example: They audited pay to address gaps.
64. Pay Transparency – Open sharing of salary ranges. Example: Transparency improved trust.
65. Prosperity Mindset – Belief in abundance and growth. Example: Her mindset fueled her entrepreneurship.
R
66. Retirement Anxiety – Worry about financial security in retirement. Example: He feared outliving savings.
67. Risk Tolerance – Willingness to take financial risks. Example: His low tolerance kept him in cash savings.
S
68. Salary Anchoring – Using past pay as benchmark. Example: She under-asked based on old salary.
69. Saving Behavior – Patterns of putting money aside. Example: Automatic savings improved behavior.
70. Scarcity Mindset – Belief resources are limited. Example: Scarcity kept her from investing.
71. Self-Worth and Money – Connection between value and income. Example: Low self-worth led him to underprice work.
72. Spending Plan – Alternative to budgeting focused on intentional use. Example: Her plan reflected values, not just numbers.
T
73. Trauma-Informed Care (Financial) – Approach recognizing money trauma. Example: Her therapist used trauma-informed methods.
74. Trust Funds – Legal arrangement holding assets for beneficiaries. Example: He accessed a trust fund at 25.
V
75. Values Clarification – Identifying core values shaping money use. Example: Family values guided her spending.
76. Venture Capital – Investment in startups with high growth potential. Example: He secured venture capital funding.
77. Volatility (Financial) – Degree of price fluctuation. Example: Market volatility made him anxious.
W
78. Wealth Accumulation – Growth of assets over time. Example: She accumulated wealth through consistent investing.
79. Wealth Gap – Disparity in wealth distribution. Example: Policies widened the racial wealth gap.
80. Wealth Identity – Self-concept tied to wealth. Example: He struggled with identity after losing millions.
X–Z
81. Workaholism (Financial) – Overworking to maintain financial worth. Example: His workaholism strained relationships.
82. Workplace Financial Wellness – Programs for employee money health. Example: Their company offered workshops.
BONUS:
83. Agency (Financial) – Feeling of control in money decisions. Example: She gained agency after learning to budget.
84. Automatic Savings – Systems that transfer money automatically. Example: Auto-saves built her emergency fund.
85. Behavioral Nudges – Small interventions to guide better decisions. Example: Opt-out 401k increased participation.
86. Cash Flow – Money in and out over time. Example: His cash flow was negative from high rent.
87. Compound Interest – Earning interest on interest. Example: Compound interest grew her savings fast.
88. Coping Mechanisms (Financial) – Money behaviors as emotional coping. Example: Shopping eased her stress.
89. Default Bias – Preference for status quo in money choices. Example: He stuck with default fund options.
90. Emergency Fund – Savings for unexpected expenses. Example: The fund covered her car repairs.
91. Financial Inclusion – Access to financial services. Example: Microloans improved inclusion.
92. Financial Socialization – How families teach money habits. Example: His parents modeled frugality.
93. Inflation Anxiety – Stress about rising prices. Example: Inflation anxiety made her hoard supplies.
94. Investor Bias – Irrational thinking in investing. Example: Herding bias drove him to buy late.
95. Lifestyle Inflation – Spending more as income rises. Example: He upgraded his lifestyle after promotion.
96. Money Blind Spots – Unseen harmful money habits. Example: He ignored recurring subscriptions.
97. Money Identity Conflict – Tension between self-image and wealth status. Example: She felt conflicted after sudden inheritance.
98. Opportunity Cost – The trade-off of choosing one financial option over another. Example: Skipping investment cost her future returns.
99. Price Anchoring – Using reference prices to set value. Example: Listing a high price anchored negotiations.
100. Psychological Safety (Financial) – Feeling safe discussing money without judgment. Example: Therapy created financial psychological safety.