Our Money Story - The Impact of Generational Trauma
At Next Gen Wealth, I take a therapeutic lens to help clients understand the money dynamics within their family of origin. This often provides a powerful explanation for the patterns that continue to play out in their financial lives as adults.
Our relationship with money is largely formed in childhood through observing the attitudes, beliefs, and behaviours of our caregivers - how they earned money, spoke about it, worried about it, or avoided it all shape our own relationship with money. These early experiences shape our internal framework around money, often long before we are consciously aware of it. Research from the University of Cambridge suggests that many of our core money behaviours are established by the age of seven, based on what we absorb in these formative years.
The patterns we witness at home are rarely isolated. They are often generational, passed down through families over time, not only through learned behaviours but also through biological mechanisms, including epigenetic transmission.
“Through our sessions, I gained clarity on the patterns and beliefs holding me back. I’m excited to continue working with Shivani to build a healthier relationship with money.”
A Biological Perspective
Epigenetics, the study of how our environment influences gene expression, offers insight into how strong emotional responses, such as fear and anxiety, can be passed down across generations.
One of the most well-known studies in this field was conducted at Emory University in 2013. In this experiment, male mice were exposed to the scent of cherry blossoms while receiving a mild electric shock. Remarkably, their descendants - up to four generations later - exhibited a heightened fear response to the same scent, despite never having experienced the shock themselves. Researchers also observed changes in the structure of the descendants’ olfactory receptors, suggesting that the emotional imprint had been transmitted biologically, not just behaviourally.
Similar findings have been observed in human studies. For example, research on descendants of Holocaust survivors has shown altered stress responses, including differences in cortisol regulation and increased sensitivity to threat. These studies suggest that the effects of trauma can extend beyond direct experience, influencing future generations at a physiological level.
When families have lived through financial instability or loss, the emotional imprint of those experiences can persist for generations. Events such as bankruptcy, war, displacement, or prolonged scarcity often activate survival responses - fight, flight, freeze, or fawn. The emotional residue of these experiences, particularly fear, along with the behaviours developed to cope with it - such as overspending, hoarding, or financial avoidance - can be passed down unless consciously addressed.
Understanding generational money trauma invites a shift in perspective: from focusing solely on behaviour change to exploring the origins of those behaviours. It encourages a more compassionate and nuanced approach, recognising that our financial patterns are not formed in isolation but are shaped by inherited emotional imprints and biological responses.
Importantly, these patterns are not fixed. The same body of research that highlights intergenerational transmission also underscores the brain and body’s capacity for change. With awareness and intentional work, individuals can begin to disentangle present-day reality from inherited fear, and develop a more grounded, regulated, and intentional relationship with money.
“Shivani helped me unpack deep-seated emotions and energy that I had been struggling with for years. By our fourth session, I had a clear, detailed document outlining my financial patterns and answers to the questions I had been seeking. The sessions became a truly spiritual experience, guiding me to a new level of self-awareness. I’m excited to continue my journey of self-discovery with Shivani’s guidance.”
Unpack your relationship with money, explore generational money patterns in your family, and build healthier money habits. Get in touch to book a discovery call.
Sources: Dias, B.G. & Ressler, K.J. (2014), Emory University, Scientific American, National Geographic, Yehuda, R. et al. (2016), LSE Psychology Blog & NIH / PubMed Central
