Psychology of Financial Planning

Chapter 1Client Values and Goals

In this chapter, we provide tools that you can use with clients to help them gain clarity around their values and goals. But before we do that, let's focus on what drives you in your professional and/or educational pursuits.

Exercise 1: What Drives You?

Spend some time thinking about what motivates you in your practice. Consider your mindset when you start work each day. What drives you to work a little harder than you otherwise would? Maybe it is related to providing for your family or maybe it is a desire to profoundly impact the lives of your clients. Perhaps you are a student and you are excited about the prospect of helping others through financial planning. Take a few minutes and outline what drives you in your career.

Look back on what you wrote. Were your motivations more extrinsic (focused on rewards and money) or intrinsic (internal rewards for the sake of doing them)? For many of us it is a combination of both. Have your motivations evolved over time?

Most human behavior can be explained by a basic set of needs. Our needs affect our behaviors. We have fundamental physiological needs, such as food, water, and rest, and they can take priority if they are not being met. Think about when you are hungry. The thought of food can dominate your work and interaction with others. As financial planners, understanding what motivates human behavior and its relationship to our goals enables us to help clients develop and achieve their ...