How does psychology play into the way we save, spend, and invest? In this session, you’ll learn how different aspects of psychology, including developmental, cognitive psychology, and clinical psychology, play into both individual choices and financial planning relationships. We’ll distinguish between two sides of financial psychology: client psychology, which focuses on the client-advisor relationship, and individual differences, which focuses on the client as an individual. You will learn how life experiences, personality, and other characteristics set the stage for future financial behaviors, as well as how to use structured interviews and assessments to learn more about the financial psychology of clients.
How does our personality impact how we behave and respond when it comes to money? What does it mean to have a “money type?” In this session, we’ll discuss how personality and individual differences lead clients to make different types of financial decisions and leads to variations in their approach to financial management. This session will examine the Big 5 personality model as it relates to how clients manage their financial lives, as well as how values, career interest models, and competency models can be used to describe and understand different types of clients.
When it comes to financial outcomes, behaviors matter. Based on over 40 years of data, part of which led to The Millionaire Next Door, six critical competencies (i.e., behavioral factors) were found to relate to an individual’s net worth above and beyond age and income. In this session, you will get an in-depth understanding of each factor, how they impact financial success, and what can be done to improve in each area over time.
The way clients approach financial management depends greatly on their financial psychology. Understanding the unique psychology of a client can better prepare you to provide advice and guidance in a way that will lead to a maximum level of success. In this session, we’ll explore different methods of understanding financial psychology via the use of psychometrics, or the science of measuring psychological characteristics. You will learn to distinguish between different types of assessments, understand what makes a “good” assessment, and learn best practices for using assessments with clients.
High-income, not-yet-wealthy clients may struggle to understand how their household income isn’t translating into high wealth. There are certain patterns of behaviors that can be improved upon in order to excel at the skill of building and sustaining wealth. Over four decades of research has demonstrated that clients who are able to build wealth over time tend to engage in certain behaviors and hold different attitudes and perspectives than those who are more challenged in this area. In this session, you’ll learn about the unique psychological characteristics that accompany self-made wealth. We will examine the demographic and psychological characteristics of high-income clients that distinguish prodigious accumulators of wealth from under accumulators of wealth.
Each of us enters the financial planning process with a unique set of attitudes and outlook about everything from investing to budgeting. Our perspective can influence success when it comes to money-related matters. In this session, you’ll gain a deeper understanding of how attitudes relate to financial behaviors and financial outcomes such as net worth, regardless of how old we are or our income level.