Client Psychology

1 - Client Psychology [Seite 3]
2 - Contents [Seite 7]
3 - Acknowledgments [Seite 13]
4 - Preface [Seite 15]
4.1 - References [Seite 19]
5 - About the Contributors [Seite 21]
6 - Chapter 1 Client Psychology [Seite 27]
6.1 - References [Seite 35]
7 - Chapter 2 Behavioral Finance [Seite 37]
7.1 - What Is Behavioral Finance? [Seite 38]
7.2 - Applications of Behavioral Finance in Understanding and Changing Clients' Behavior [Seite 40]
7.2.1 - Risk Tolerance, Risk Capacity, and Client Risk Perceptions [Seite 40]
7.2.2 - Overconfidence Bias [Seite 41]
7.2.3 - Financial Literacy and Financial Capability [Seite 42]
7.3 - Summary [Seite 42]
7.4 - References [Seite 43]
8 - Chapter 3 Understanding Client Behavior: Rational or Irrational? [Seite 45]
8.1 - Bounded Rationality [Seite 45]
8.2 - Sunk Cost Fallacy [Seite 48]
8.3 - Flat Rate Bias [Seite 49]
8.4 - Summary [Seite 49]
8.5 - References [Seite 50]
9 - Chapter 4 Heuristics and Biases [Seite 51]
9.1 - System 1 and System 2 [Seite 52]
9.2 - Heuristics [Seite 53]
9.2.1 - Representativeness [Seite 54]
9.2.2 - Availability [Seite 57]
9.2.3 - Anchoring and Adjustment [Seite 58]
9.3 - Bias Reduction [Seite 60]
9.3.1 - Modify the Decision-Maker [Seite 62]
9.3.2 - Change the Decision-Making Environment [Seite 63]
9.4 - References [Seite 65]
10 - Chapter 5 Decision-Making under Risk [Seite 69]
10.1 - Expected Utility Theory [Seite 69]
10.2 - Violations of Expected Utility Theory [Seite 70]
10.3 - Prospect Theory [Seite 72]
10.3.1 - Overview [Seite 72]
10.4 - Effects in Prospect Theory [Seite 77]
10.4.1 - Endowment Effect [Seite 77]
10.4.2 - Status Quo Bias [Seite 79]
10.4.3 - Disposition Effect [Seite 80]
10.5 - Implications for Research and Practice [Seite 81]
10.5.1 - Research [Seite 81]
10.5.2 - Practice [Seite 84]
10.6 - References [Seite 88]
11 - Chapter 6 The Role of Mental Accounting in Household Spending and Investing Decisions [Seite 91]
11.1 - Mental Accounting as Categorization [Seite 92]
11.2 - Methods for Categorizing Funds [Seite 93]
11.2.1 - Sources and Uses of Funds [Seite 93]
11.2.2 - Sets of Choices and Outcomes [Seite 96]
11.3 - Budgeting [Seite 99]
11.3.1 - Implications for Financial Planning Practice [Seite 99]
11.3.2 - Assets versus Debts [Seite 101]
11.3.3 - Potential Benefits [Seite 103]
11.3.4 - Potential Errors [Seite 105]
11.4 - Implications for Investing [Seite 108]
11.4.1 - Opening and Closing Accounts [Seite 108]
11.4.2 - What Assets to Purchase [Seite 111]
11.5 - Concluding Remarks and Future Research [Seite 112]
11.5.1 - Formation and Evolution of Mental Accounts [Seite 112]
11.5.2 - Mental Accounting Interactions [Seite 113]
11.5.3 - Mental Accounting and Technology [Seite 114]
11.5.4 - Mental Accounting and Well-Being [Seite 115]
11.6 - References [Seite 115]
12 - Chapter 7 Intentional Choice Architecture [Seite 123]
12.1 - Are You an Intentional Choice Architect? [Seite 124]
12.2 - Principle 1: Humans Have Limitations [Seite 127]
12.3 - Principle 2: Humans Use Reference Points to Make Decisions [Seite 129]
12.4 - The Choice Architect's Opportunity [Seite 132]
12.5 - The Case for Intentional Choice Architecture: Retirement Savings [Seite 133]
12.6 - Plan Participation, Deferral Rates, and Default Investment Options [Seite 136]
12.7 - From Awareness to Action [Seite 140]
12.8 - References [Seite 142]
13 - Chapter 8 Cognition, Distraction, and the Financial Planning Client [Seite 145]
13.1 - Influences on the Frame of Mind [Seite 146]
13.1.1 - Intuitive Processing (System 1) [Seite 147]
13.1.2 - Deliberative Processing (System 2) [Seite 148]
13.2 - Emotion, Stress, and Touch [Seite 148]
13.2.1 - Emotion [Seite 148]
13.2.2 - Stress [Seite 150]
13.2.3 - Physical Touch [Seite 151]
13.3 - Choice and Cognitive Overload [Seite 151]
13.3.1 - Asymmetric Dominance [Seite 151]
13.3.2 - Less Is More [Seite 152]
13.4 - Visual Portrayal of Data [Seite 152]
13.5 - Losses and Gains [Seite 153]
13.6 - Cognitive Resource Depletion [Seite 153]
13.6.1 - Thinking Slow in a Fast World [Seite 155]
13.7 - Implications for Financial Planning Professionals [Seite 156]
13.8 - References [Seite 159]
14 - Chapter 9 Personality and Financial Behavior [Seite 163]
14.1 - Models of Personality [Seite 164]
14.1.1 - The Big Five [Seite 164]
14.1.2 - HEXACO [Seite 165]
14.2 - The Relationship between Personality and Financial Behavior [Seite 165]
14.3 - Openness to Experience [Seite 166]
14.3.1 - Working with Open Clients [Seite 166]
14.4 - Conscientiousness [Seite 167]
14.4.1 - Working with Conscientious Clients [Seite 168]
14.5 - Extroversion [Seite 168]
14.5.1 - Working with Extroverted Clients [Seite 169]
14.6 - Agreeableness [Seite 170]
14.6.1 - Working with Agreeable Clients [Seite 170]
14.7 - Neuroticism [Seite 171]
14.7.1 - Working with Neurotic Clients [Seite 172]
14.8 - Connecting Personality to Financial Behavior through Theory [Seite 173]
14.9 - Personality Measurement [Seite 174]
14.10 - Implications for Research and Practice [Seite 175]
14.11 - Future Direction [Seite 176]
14.12 - References [Seite 177]
15 - Chapter 10 Risk Literacy [Seite 181]
15.1 - Berlin Numeracy Test [Seite 182]
15.1.1 - Healthcare Applications [Seite 183]
15.1.2 - Financial Applications [Seite 185]
15.2 - Risk Literacy and Financial Planning [Seite 186]
15.3 - Conclusion [Seite 187]
15.4 - References [Seite 188]
15.5 - Appendix [Seite 190]
15.6 - Berlin Numeracy Test for General Population [Seite 190]
15.7 - Berlin Numeracy Test for Educated Population [Seite 191]
16 - Chapter 11 Automated Decision Aids: Understanding Disuse and Designing for Trust, with Implications for Financial Planning [Seite 193]
16.1 - Mechanical versus Holistic Judgment [Seite 194]
16.2 - Algorithm Aversion and Automation Disuse [Seite 196]
16.3 - Trust in Automated Systems [Seite 198]
16.4 - Developing Trust [Seite 200]
16.5 - Complacency [Seite 202]
16.6 - Conclusion [Seite 202]
16.7 - References [Seite 203]
17 - Chapter 12 Self-Determination Theory and Self-Efficacy in Financial Planning [Seite 207]
17.1 - Self-Determination Theory [Seite 208]
17.2 - Self-Efficacy [Seite 210]
17.3 - References [Seite 212]
18 - Chapter 13 Marriage and Family Therapy, Financial Therapy, and Client Psychology [Seite 215]
18.1 - Marriage and Family Therapy [Seite 216]
18.1.1 - Treatment Issues [Seite 216]
18.2 - Family Systems Theory [Seite 217]
18.2.1 - Major Theoretical Assumptions and Concepts [Seite 217]
18.2.2 - Family Systems and Client Psychology [Seite 219]
18.2.3 - Education [Seite 220]
18.3 - Financial Therapy [Seite 221]
18.4 - Building Alliances with Families and Couples [Seite 222]
18.4.1 - Common Factors [Seite 223]
18.5 - Referrals and Collaborations [Seite 224]
18.5.1 - Assessment [Seite 224]
18.6 - Conclusion [Seite 226]
18.7 - References [Seite 226]
19 - Chapter 14 Client Diversity: Understanding and Leveraging Difference to Enhance Financial Planning Practice [Seite 229]
19.1 - Understanding the Concept of Diversity [Seite 230]
19.1.1 - What Is Diversity? [Seite 230]
19.1.2 - How Does Diversity Work? [Seite 232]
19.2 - The Business Value of Diversity [Seite 235]
19.3 - Leveraging Client Diversity [Seite 237]
19.3.1 - Approaches to Diversity [Seite 237]
19.4 - Practice Perspectives [Seite 239]
19.4.1 - Building a Diverse Clientele [Seite 239]
19.4.2 - Inclusive Relationship Management [Seite 240]
19.4.3 - Developing and Leveraging Diverse Networks [Seite 242]
19.5 - Conclusion [Seite 244]
19.6 - References [Seite 244]
20 - Chapter 15 Client Psychology: The Older Client [Seite 247]
20.1 - Introduction [Seite 247]
20.1.1 - Waves of Gray [Seite 248]
20.1.2 - What Is Aging? [Seite 250]
20.1.3 - Normal Cognitive Aging [Seite 252]
20.2 - Age-Related Changes in Brain Structure and Function [Seite 252]
20.2.1 - Language [Seite 254]
20.2.2 - Visuospatial Ability [Seite 256]
20.2.3 - Attention [Seite 256]
20.2.4 - Processing Speed [Seite 256]
20.2.5 - Memory [Seite 257]
20.2.6 - Executive Function [Seite 258]
20.3 - Aging and Economic Decision-Making [Seite 259]
20.3.1 - Learning [Seite 259]
20.3.2 - Reaction to Gains and Losses [Seite 260]
20.3.3 - Intertemporal Decision-Making [Seite 260]
20.3.4 - Probabilistic (Risky) Decision-Making [Seite 261]
20.3.5 - Framing Effects [Seite 261]
20.3.6 - Overconfidence [Seite 262]
20.3.7 - Compensation and Adaptation [Seite 262]
20.4 - Concerning Signs [Seite 263]
20.5 - Supporting Older Clients [Seite 265]
20.5.1 - Distinguishing Normal from Concerning Cognitive Change [Seite 267]
20.6 - Research Challenges [Seite 268]
20.7 - Final Thoughts [Seite 271]
20.8 - References [Seite 272]
21 - Chapter 16 Financial Psychology [Seite 279]
21.1 - Financial Psychology [Seite 280]
21.1.1 - Social Psychology [Seite 281]
21.1.2 - Developmental Psychology [Seite 281]
21.1.3 - Psychology of Personality [Seite 282]
21.1.4 - Multicultural Psychology [Seite 283]
21.1.5 - Positive Psychology [Seite 284]
21.1.6 - Humanistic Psychology [Seite 285]
21.2 - Financial Psychology for Financial Planners [Seite 285]
21.2.1 - Cognitive Behavioral Techniques [Seite 285]
21.3 - Motivational Interviewing Techniques [Seite 287]
21.3.1 - Solution-Focused Techniques [Seite 288]
21.3.2 - Positive Psychology Techniques [Seite 289]
21.3.3 - Experiential Techniques [Seite 290]
21.4 - Conclusion [Seite 291]
21.5 - References [Seite 292]
22 - Chapter 17 Money Disorders and Other Problematic Financial Behaviors [Seite 297]
22.1 - Literature on Money Disorders and Related Financial Behaviors [Seite 299]
22.1.1 - Compulsive Buying Disorder (CBD) [Seite 300]
22.1.2 - Gambling Disorder [Seite 301]
22.1.3 - Hoarding Disorder [Seite 301]
22.1.4 - Workaholism [Seite 302]
22.1.5 - Financial Dependence [Seite 302]
22.1.6 - Financial Enabling [Seite 302]
22.1.7 - Financial Denial [Seite 303]
22.1.8 - Financial Enmeshment [Seite 303]
22.2 - Addressing Money Disorders and Related Financial Behaviors [Seite 304]
22.2.1 - Assessment [Seite 304]
22.2.2 - Motivational Interviewing [Seite 304]
22.3 - Case Studies [Seite 306]
22.4 - Overspending and Compulsive Buying Disorder [Seite 306]
22.4.1 - Case Overview [Seite 306]
22.4.2 - Financial and Psychological Symptoms [Seite 307]
22.4.3 - Possible Actions [Seite 307]
22.5 - Financial Denial or Avoidance [Seite 308]
22.5.1 - Case Study [Seite 308]
22.5.2 - Financial and Psychological Symptoms [Seite 308]
22.5.3 - Possible Actions [Seite 308]
22.6 - Financial Enabling and Dependency [Seite 309]
22.6.1 - Case Study [Seite 309]
22.6.2 - Financial and Psychological Symptoms [Seite 309]
22.6.3 - Possible Actions [Seite 310]
22.7 - References [Seite 311]
23 - Chapter 18 Situation Awareness in Financial Planning: Research and Application [Seite 315]
23.1 - Perception [Seite 318]
23.2 - Comprehension [Seite 319]
23.3 - Prediction [Seite 320]
23.3.1 - Financial Planning Practice [Seite 321]
23.3.2 - An Applied Example [Seite 322]
23.4 - Future Directions [Seite 324]
23.5 - References [Seite 325]
24 - Chapter 19 Final Remarks [Seite 327]
24.1 - References [Seite 330]
25 - Index [Seite 331]
26 - EULA [Seite 339]