The Four Trauma Responses: How Fight, Flight, Freeze, and Fawn Manifest in Financial Behaviours

It's Not About The Money

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Episode Overview

In this episode, I explore the often-overlooked connection between trauma responses and our financial behaviours. By examining how fight, flight, freeze and fawn manifest in our relationship with money, I uncover the deeper patterns that shape our financial decisions—often without us even realising it.

Key Highlights

Understanding Financial Trauma

Financial trauma can be passed down through generations via family stories, belief systems and behaviours
Research suggests traumatic experiences, including financial stress, can affect gene expression
Environmental factors (current economic climate, news) shape our financial behaviours and attitudes
Trauma doesn't only refer to major events—it's any experience that exceeds our capacity to cope
The key difference between stress and trauma: stress can motivate action while trauma can shut down our ability to act

The Four Trauma Responses in Money Behaviours

1. Fight Response

Characteristics: Anger, aggression, confrontation, desire for control
Financial manifestations:
- Aggressive pursuit of money at the expense of wellbeing
- Defensiveness or anger during money conversations
- High-risk investment strategies without proper research
- Confrontational behaviour around spending habits
- Competitive approach to financial status
- Resistance to accepting financial help from others

2. Flight Response

Characteristics: Avoiding responsibilities, burying head in the sand
Financial manifestations:
- Avoiding money conversations or opening bank statements
- Procrastinating on financial decisions
- Changing the subject when money comes up
- Setting up financial systems but not following through
- Overspending and impulsive shopping as emotional escape
- Ignoring financial problems until they become overwhelming

3. Freeze Response

Characteristics: Becoming stuck, rigid, unable to take action
Financial manifestations:
- Inability to make financial decisions
- Leaving money in low-interest accounts for years
- Complete inability to ask for pay rises or raise prices
- Staying stuck in financially abusive situations
- Excessive hoarding or saving from fear of insecurity
- Avoiding spending money even on necessities

4. Fawn Response

Characteristics: People-pleasing to avoid conflict or rejection
Financial manifestations:
- Undercharging for services
- Staying in unfulfilling jobs to please others
- Taking on clients who can't afford your rates
- Lending money when you can't afford to
- Paying for others at your own expense
- Prioritising others' financial needs over your own

The Brain Science Behind Money Trauma

The amygdala processes emotions like fear and anxiety during financial stress
The hippocampus affects learning, memory and cognitive processing
The prefrontal cortex impacts decision-making, planning and impulse control
Regulating the nervous system helps all these brain regions function better

Moving Forward from Financial Trauma

Awareness is the first step—simply noticing when you're in a trauma response
Put healthy financial boundaries in place
Learn to regulate your nervous system through breathwork and movement
Have compassion for these protective responses
Take small steps rather than trying to overhaul everything at once
Remember: these responses are not who you are—just patterns in your nervous system

Final Thought

Trauma responses are not who you are—they're patterns in your nervous system that developed to keep you safe. As you bring awareness to these patterns, you create space for new, more empowered financial behaviours to emerge.

Chapters

00:00 Understanding Financial Trauma and Its Impact

06:09 Defining Trauma in the Context of Money

11:42 Exploring the Fight Response to Money

16:05 The Flight Response: Avoidance and Procrastination

20:26 The Freeze Response: Paralysis in Financial Decisions

24:44 Fawning: The People-Pleasing Money Response

28:09 Recognizing and Healing Trauma Responses

Resources:

Get my FREE book 'It's Not About The Money'

Take the Money StoryTypes® Quiz

Come to our wealth awakening retreat

Become a Certified Financial Coach

Previous episodes on Money Trauma:

https://catherinemorgan.com/podcastarchive/the-psychological-impact-of-money-trauma/

https://catherinemorgan.com/podcastarchive/10-steps-to-overcome-your-money-trauma/

https://catherinemorgan.com/podcastarchive/financial-coaching-can-help-you-heal-money-trauma/

https://catherinemorgan.com/podcastarchive/what-is-financial-trauma-2/

https://catherinemorgan.com/podcastarchive/the-signs-of-financial-trauma/

341 episodes