about money, they tend to swing too far in one direction or the other. The best approach takes a
middle path – talk to both head and heart.”^1
Instead of just asking your clients to provide you with the basic numbers, try asking your clients
questions about how they feel when you’re discussing their finances. You could try questions
such as:
“What does money mean to you?”
“What is your first memory involving money?” “What is the most difficult thing about money for you? For your family?”Helping clients become aware that financial decisions are influenced by emotions and past
experiences may help them understand what drives some of their financial practices. It can also
help you better understand their unique strengths and challenges.
Cultural influences on financial decisions
No decisions, including financial ones, are made in a vacuum. People make all of their decisions
within the very powerful context of culture, including family, ethnicity, region, community,
socio-economic status, generation, and religion. Each of these factors influences beliefs, values,
and experiences about money and the way financial decisions are handled.
Cultural influences are heavily rooted in values. Consider how common American values—such
as individualism, practicality, honesty, and hard work^2 —might influence the financial choices
people make. Values around money are also influenced by businesses, governments, changes in
financial markets, and the media.
(^1) Mellan, Olivia and Christie, Sherrie, Second Thoughts: Making Better Decisions, ThinkAdvisor, February 25, 2013.
See http://www.thinkadvisor.com/2013/02/25/second-thoughts-making-better-decisions.
(^2) Kohl, L. Robert, Values Americans Live By, 1984. See
http://www.claremontmckenna.edu/pages/faculty/alee/extra/American_values.html.