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The Latest In Financial Psychology
Financial behaviors, wealth attitudes, and the science of building wealth.
A Partnership for Financial Wellness
One of the main missions of DataPoints is to help individuals improve the way in which they manage their financial lives using behavioral science. This mission has two important components: first, we have to understand our own patterns of money-related behaviors, personality, attitudes, and other characteristics as a starting point. Then, if we have the desire to change our financial trajectory, we have to modify the way in which we save, spend, invest, and manage[…]
The Investing Mistakes of Millionaires (And The Rest of Us)
Sometime around 2000, I gambled some of my money away while fooling myself into thinking I was doing something very sophisticated. I wasn’t in Las Vegas: I was sitting at my computer buying shares of Krispy Kreme Donuts on eTrade. I had seen the front page of Forbes or Fortune or some other publication touting the company’s success and its future prospects, and decided on my own, without seeking the counsel of my wiser and[…]
Psychological Schemas & Spending: Children’s Birthday Parties
When our first daughter was very young–not quite two years old–we attended our first-ever birthday party for a three-year-old. (I recently talked about this experience on the Afford Anything podcast with Paula Pant). We went as a family of three. It was 2:00 in the afternoon on a Saturday. We arrived and were somewhat taken aback by the scene: was this a wedding reception? Considering the evidence of the multitude of adults milling around the[…]
Openness to Change in Personal Finance
If you’ve spent any amount of time contemplating how you might improve the condition of your health, career, finances, family, spirituality, or other important element of your life, you may inevitably reach the conclusion that a change of some kind is required. Many readers of our blog and books share a common conundrum: they acknowledge a change is necessary (either for themselves or for their client), but they also instinctively know that actually making the[…]
On Using Assessments to Screen Prospects
While visiting Santa Cruz last year in August at the FPA Far West Roundup, I stepped into a surf shop on the wharf and saw a magic 8-ball for sale (I’m still not exactly certain what magic 8-balls and surfing have to do with each other). I hadn’t seen one of these things in quite some time, and it reminded me that, much like many of the other toys and games our children play with, the[…]
The Behavioral Science Toolkit for Financial Services
Understanding wealth psychology can help avoid behavioral hurdles.
Identify Wealth Potential
Understand your clients’ patterns of financial behaviors. Enhance client potential to build and maintain wealth.
Assess Money Attitudes
Uncover your clients’ attitudes towards saving, spending, and investing.
Determine Risk Tolerance
Assess psychological risk tolerance & guide better investing behaviors with detailed feedback.