Psychology of Financial Planning

Chapter 10Principles of Counseling in Financial Planning Practice

A solid foundation in communication skills is essential for financial planners. Additionally, some basic principles and tools from counseling and psychology can be useful in establishing meaningful and trusting relationships with clients. Several of these techniques have been integrated into financial planning. In Psychology of Financial Planning, we introduced counseling approaches such as solution‐focused, cognitive behavioral, positive psychology, and motivational interviewing. In this chapter, we offer some tools and techniques planners can use with clients that are drawn from solution‐focused therapy (SFT), cognitive behavioral therapy (CBT), and positive psychology.

Solution‐Focused Techniques in Financial Planning

One of the hallmark techniques in SFT is the miracle question. It is designed to help create an image of what someone would want their life to look like if a “miracle” occurred overnight and they woke up the next day with all of their problems solved and all of their goals met. After the client paints the picture of what their life would look like, the planner can ask follow‐up questions to help them understand the positive changes the miracle would make in the client's life.¹ What follows is an example of the miracle question with some possible follow‐up questions.

Exercise 29: The Miracle Question

As with all counseling techniques, it is helpful for a financial planner to go through the experience ...