Psychology in Financial Planning
A recent study reveals that financial planners require more training in psychology to effectively address client needs.
The study, published in the Journal of Financial Planning, suggests that
crises, behavioral biases, and interpersonal conflicts are not fringe topics but core aspects of modern advising.
- Financial planners are spending more time discussing non-financial topics with clients.
- Planners are seeking more training in psychology, including addressing financial abuse and managing family tensions.
- The study also highlights the need for planners to learn how to identify appropriate mental health referrals.
The study's findings come three years after the CFP examination added the psychology of planning to its primary subjects.
Author's summary: Planners need more psychology training to advise clients effectively.