Glossary of Financial Therapy terms
The first of its kind glossary of Financial Therapy terms, in alphabetical order, all in one place!
A - C
D
Debt Cycle – Pattern of borrowing and repayment. Example: Payday loans trapped him in a debt cycle.
Debt Shame – Embarrassment tied to debt. Example: She hid her student loans due to shame.
Dependency (Financial) – Reliance on someone else’s money. Example: Financial dependency kept her in a toxic marriage.
Diversification – Spreading investments to reduce risk. Example: His diversified portfolio weathered the crash.
E
Equity (Workplace) – Fairness in pay/opportunity. Example: The company promoted pay equity.
Expressive Writing – Journaling to process money emotions. Example: Writing helped her reduce money shame.
F
Financial Abuse
Financial Anxiety – Chronic worry about money. Example: She felt anxious even with savings.
Financial Attachment – Emotional bond with money. Example: His anxious attachment fueled overspending.
Financial Avoidance – Avoiding money tasks. Example: He ignored bills for months.
Financial Behavior Tracking – Logging money actions and feelings. Example: Tracking showed she spent more when lonely.
Financial Burnout – Exhaustion from constant financial stress. Example: Overwork led to financial burnout.
Financial Coaching – Guidance on money goals (not therapy). Example: Her coach helped with debt payoff.
Financial Enmeshment – Blurred boundaries with family and money. Example: Parents demanded access to her finances.
Financial Flashpoints – Traumatic money events shaping beliefs. Example: Growing up in hyperinflation created scarcity fears.
Financial Genogram – Family tree mapping money dynamics. Example: The genogram showed generational debt cycles.
Financial Goals – Desired outcomes with money. Example: Buying a home was her goal.
Financial Identity – How money shapes self-concept. Example: Bankruptcy shook his financial identity.
Financial Independence – Living without employment income. Example: She reached independence by age 45.
Financial Infidelity – Hiding money issues from a partner. Example: He had secret gambling debt.
Financial Literacy – Understanding money basics. Example: Literacy improved her investing confidence.
Financial Literacy Gap – Unequal access to money knowledge. Example: Marginalized groups face larger gaps.
Financial Resilience – Ability to recover financially. Example: Her emergency fund gave resilience.
Financial Sabotage – Damaging financial stability (self/other). Example: He gambled away savings.
Financial Secrecy – Hiding financial info. Example: She concealed credit card debt.
Financial Shame Spiral – Cycle of shame-driven avoidance. Example: Shame stopped him from opening bills.
Financial Stress – Emotional strain about money. Example: Bills triggered financial stress.
Financial Therapy
G
Generational Wealth – Assets passed down in families. Example: He used generational wealth to fund school.
Generosity Guilt – Guilt when spending on self. Example: She felt guilt buying a gift for herself.
H
Hedonic Adaptation – Returning to baseline happiness after gains. Example: The joy of a new car faded fast.
Hyperinflation Trauma – Long-lasting effects of inflation crises. Example: Parents hoarded food after hyperinflation.
I
Impulse Spending – Buying without planning. Example: Stress led to impulse shopping.
Intergenerational Transmission of Wealth – Passing down money beliefs/wealth. Example: His family passed down both assets and scarcity fears.
L
Loss Aversion – Preferring to avoid loss over equivalent gain. Example: Loss aversion kept her from investing.
M
Mindfulness (Financial) – Awareness of feelings during money choices. Example: Pausing mindfully curbed her overspending.
Money Anxiety – Distress tied to finances. Example: He lost sleep over bills.
Money Avoidance (Script)
Money Boundaries – Limits around money sharing. Example: He declined a loan request politely.
Money Genogram
Money Scripts
Money Shame – Feeling unworthy about money. Example: Bankruptcy fueled her shame.
Money Status (Script)
Money Trauma – Lasting impact of financial crises. Example: Losing his home created trauma.
Money Vigilance (Script)
Money Worship (Script)
N
Negotiation Anxiety – Fear of money discussions. Example: Anxiety kept her from asking for a raise.
O
Overidentification with Success – Tying worth solely to achievement. Example: Layoff crushed his self-esteem.
P
Pay Equity – Equal pay for equal work. Example: They audited pay to address gaps.
Pay Transparency – Open sharing of salary ranges. Example: Transparency improved trust.
Prosperity Mindset – Belief in abundance and growth. Example: Her mindset fueled her entrepreneurship.
R
Retirement Anxiety – Worry about financial security in retirement. Example: He feared outliving savings.
Risk Tolerance – Willingness to take financial risks. Example: His low tolerance kept him in cash savings.
S
Salary Anchoring – Using past pay as benchmark. Example: She under-asked based on old salary.
Saving Behavior – Patterns of putting money aside. Example: Automatic savings improved behavior.
Scarcity Mindset – Belief resources are limited. Example: Scarcity kept her from investing.
Self-Worth and Money – Connection between value and income. Example: Low self-worth led him to underprice work.
Spending Plan – Alternative to budgeting focused on intentional use. Example: Her plan reflected values, not just numbers.
T
Trauma-Informed Care (Financial) – Approach recognizing money trauma. Example: Her Financial Therapist used trauma-informed methods specifically focused on her type of trauma.
Trust Funds – Legal arrangement holding assets for beneficiaries. Example: He accessed a trust fund at 25.
V
Values Clarification – Identifying core values shaping money use. Example: Family values guided her spending.
Venture Capital – Investment in startups with high growth potential. Example: He secured venture capital funding.
Volatility (Financial) – Degree of price fluctuation. Example: Market volatility made him anxious.
W
Wealth Accumulation – Growth of assets over time. Example: She accumulated wealth through consistent investing.
Wealth Gap – Disparity in wealth distribution. Example: Policies widened the racial wealth gap.
Wealth Identity – Self-concept tied to wealth. Example: He struggled with identity after losing millions.
X–Z
Workaholism (Financial) – Overworking to maintain financial worth. Example: His workaholism strained relationships.
Workplace Financial Wellness – Programs for employee money health. Example: Their company offered workshops.
BONUS:
Agency (Financial) – Feeling of control in money decisions. Example: She gained agency after learning to budget.
Automatic Savings – Systems that transfer money automatically. Example: Auto-saves built her emergency fund.
Behavioral Nudges – Small interventions to guide better decisions. Example: Opt-out 401k increased participation.
Cash Flow – Money in and out over time. Example: His cash flow was negative from high rent.
Compound Interest – Earning interest on interest. Example: Compound interest grew her savings fast.
Coping Mechanisms (Financial) – Money behaviors as emotional coping. Example: Shopping eased her stress.
Default Bias – Preference for status quo in money choices. Example: He stuck with default fund options.
Emergency Fund – Savings for unexpected expenses. Example: The fund covered her car repairs.
Financial Inclusion – Access to financial services. Example: Microloans improved inclusion.
Financial Socialization – How families teach money habits. Example: His parents modeled frugality.
Inflation Anxiety – Stress about rising prices. Example: Inflation anxiety made her hoard supplies.
Investor Bias – Irrational thinking in investing. Example: Herding bias drove him to buy late.
Lifestyle Inflation – Spending more as income rises. Example: He upgraded his lifestyle after promotion.
Money Blind Spots – Unseen harmful money habits. Example: He ignored recurring subscriptions.
Money Identity Conflict – Tension between self-image and wealth status. Example: She felt conflicted after sudden inheritance.
Opportunity Cost – The trade-off of choosing one financial option over another. Example: Skipping investment cost her future returns.
Price Anchoring – Using reference prices to set value. Example: Listing a high price anchored negotiations.
Psychological Safety (Financial) – Feeling safe discussing money without judgment. Example: Therapy created financial psychological safety.