The Psychology of Financial Planning: Practitioner Resource Guide & The Psychology of Financial Planning

Both The Psychology of Financial Planning: Practitioner Resource Guide and The Psychology of Financial Planning address the new six principal knowledge topics in the CFP's psychology of financial planning domain. These six new knowledge topics are:

• Client and planner attitudes, values, and biases
• Behavioral finance
• Sources of money conflict
• Principles of counseling
• General principles of effective communication
• Crisis events with severe consequences

Key Highlights

• Each book has 15 chapters that address the six topics. The chapter headings are the same for both titles, though the coverage of the topics is different as one book is geared for the academic market and one is geared for the practitioner market.
• The Psychology of Financial Planning provides the what - a study of psychological principles that can help identify and respond to attitudes, behaviors, and situations that impact client decision-making, the client-planner relationship, and the client's financial well-being.
• The Psychology of Financial Planning: Practitioner Resource Guide provides the how - how does a financial planner take the psychological principles and apply them to practice.

Key Selling Points

• The Psychology of Financial Planning, each chapter begins with valuable material such as the relevant CFP Principle Knowledge Topics, Learning Objectives, Chapter Objectives and a Chapter Synopsis for an easy entry into the chapters.
• The Psychology of Financial Planning: Practitioner Resource Guide, designed for financial planners, includes step-by-step guides, do's and don'ts lists, exercises, assessments, examples and other helpful figures and lists.

Key Topics

• Risk Tolerance: Discusses the assessment of risk tolerance and loss aversion, while taking into account the risk propensity, attitudes, composure, capacity, knowledge and needs of a client.
• How Client Values Shape Their Goals: Describes strategies for discovering these values and how they are often linked to the client's identity (e.g., race, ethnicity, culture, religion).
• Cognitive Biases and Heuristics: Identifies and discusses the various cognitive biases and decision-making heuristics that people frequently use in their financial decision-making process.
• Integrated Financial Planning: How to address clients' emotional relationships with money as well as traditional financial concerns (exterior finance).
• Financial Disclosure: Discusses the difficulties that arise in self-disclosure of financial information, especially between partners.
• Financial Conflict: How to mediate financial conflict and identifying signs of escalating issues.
• Goal incongruence: How to work with couples who are experiencing conflicting goals or ambivalent goals.
• Financial Manipulation: Addresses how financial enabling, financial control and financial abuse are used for personal gain.