“What do you want your children to learn about money? What do you think they are
learning from you now?”It’s often difficult for people to open up about money, but taking the time to really understand
and connect with your clients’ cultural and emotional values and needs around money will build
empathy, making you more successful in achieving both client and program outcomes.
Recognize emotional and cultural influences
An example of how a difference in cultural values might affect financial behavior is that Western
culture values individuality and personal well-being, which means it’s generally considered
appropriate for each person to support themselves financially. In some other cultures, family
members support each other financially throughout their lives—if they save money, it may go to
a family member they believe needs it. If a client chooses to spend his disposable income on his
extended family instead of saving it in an emergency fund, this doesn’t mean that he has bad
financial habits, just that he is making financial choices in a different cultural context than you
may be familiar with.
Helping to bridge cultural and emotional roadblocks
It’s important to understand these cultural influences without being judgmental. In discussing
financial goals and choices with clients, seek to understand their values and cultural influences,
so that you can help them reach their true goals in a way that makes them feel understood and
respected. Though they might agree to a financial plan that makes rational sense, and know that
it’s what they have agreed to do, this is often not enough to override their feelings or cultural
context in the moment when decisions are made. Remember that while their priorities may
seem counterproductive to you, within their own culture, they may feel completely appropriate.
Once you understand the cultural factors that are guiding your clients’ behavior, you can coach
them toward financial choices that help them effectively manage their obligations and line up
with their true values and desires. This might mean that you help them figure out a compromise:
for example, how to ensure that they take responsibility for their own financial needs and
obligations without asking them to abandon their commitment to help their extended family.
The Consumer Financial Protection Bureau (CFPB) has prepared this material as a resource for the public. This material is provided
for educational and information purposes only. It is not intended to be a replacement for the guidance or advice of an accountant,
certified financial advisor, or otherwise qualified professional. The CFPB is not responsible for the advice or actions of the
individuals or entities from which you received the CFPB educational materials. The CFPB’s educational efforts are limited to the
materials that the CFPB has prepared.