Sarah Stanley Fallaw's Blog, page 2
July 14, 2022
Being Agreeable: The Last Thing You Need When Building Wealth
Let’s Agree to Disagree Agreeableness is a personality trait that is often overlooked or misunderstood when managing our financial lives. The field of personality psychology generally recognizes five primary personality traits that are understood to form the basic foundation of individual personality (often referred to as “the Big Five” or “OCEAN model”). These include openness[...]
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May 20, 2022
Investing State Versus Trait
If you have watched a fintech product demo that includes anything remotely related to financial psychology, you might hear the word “personality” thrown around a lot. For example, I heard one very confident salesperson recently refer to his platform as measuring “investor personality” when the tech was measuring the client’s current feelings about investing. Personality characteristics[...]
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April 22, 2022
The Financial Planner Schema
What is a swim meet? Maybe you’ve never been to one, but I’ll bet that you have a concept in your head for what a swim meet is like. It may not be accurate or have been created from any direct experience, but you have some idea, or schema, for what a swim meet includes and[...]
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April 8, 2022
Fundamental Attribution Error
Our latest financial psychology term describes how we can sometimes fall prey to errors in decision-making about others. The American Psychological Association defines fundamental attribution error this way: the tendency to overestimate the degree to which an individual’s behavior is determined by his or her abiding personal characteristics, attitudes, or beliefs and, correspondingly, to minimize the[...]
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December 20, 2021
What Are Money Attitudes?
Each of us reacts to money and money-related topics on a scale from negative to neutral to positive. Money attitudes are not perfect predictors of financial behaviors. However, how we feel about areas like budgeting, spending, and investing can and does impact our financial goals. Indeed, our attitudes can affect the entire financial planning process,[...]
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November 18, 2021
What Is The Difference Between Financial Psychology and Behavioral Finance?
Financial services as an industry is moving at warp speed to embrace psychology. The trick is that we have a definition problem when describing the field that encompasses the mind, behavior, and money. And, if you look at the media coverage of finance and psychology, the majority focuses on cognitive errors in decision-making related to[...]
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September 23, 2021
The Library of Behavioral Assessments for Financial Services
At DataPoints, we’ve created the world’s first library of behavioral assessments for professionals working directly with clients to provide financial advice, guidance, and coaching. Learn more about each of our assessments and which one (or ones) might be right for your practice. Advise Assessments Building Wealth Identify and guide client financial behaviors with the Building[...]
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September 21, 2021
How to Add Assessments To Financial Planning
Individual personality traits can (and do) impact whether a client achieves financial goals. Behavioral assessments can help uncover client personality, values, attitudes, and beliefs. In turn, you can use this information to help provide the client with personalized guidance, education, coaching, or nudging to help them follow the financial plan and otherwise achieve goals. Below,[...]
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How to Add Behavioral Assessments To Financial Planning
Individual personality traits can (and do) impact whether a client achieves financial goals. Behavioral assessments can help uncover client personality, values, attitudes, and beliefs. In turn, you can use this information to help provide the client with personalized guidance, education, coaching, or nudging to help them follow the financial plan and otherwise achieve goals. Below,[...]
The post How to Add Behavioral Assessments To Financial Planning appeared first on DataPoints.
July 8, 2021
Financial Planning Clients’ Investing Confidence & Knowledge
Financial psychology is at the heart of our product development and ongoing research here at DataPoints. Part of our research program includes examining investor-related characteristics. Our analyses include areas like confidence and composure. Our latest Client FinPsych Report explored the preferences, knowledge, and confidence of over 2,600 financial planning clients between February 2018 and May 2021.[...]
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