Key Wealth Psychology Terms
Wealth/Financial Psychology Coaching is a process in which the client, with the informed guidance of a skilled coach, identifies a specific and clear vision of the future, and takes important steps to implement a plan of action toward that future. Joan often conducts Wealth Psychology Coaching as a companion service alongside the other expert services offered by a client’s financial advisor — thus providing an optimal financial planning experience. At the heart of Financial Psychology Coaching is Life Planning, which builds the foundation for implementing one’s financial, social, and intellectual capital in service of one’s dreams.
The dynamics that underlie Wealth Psychology Coaching are: (1) a focus on future possibility rather than past mistakes or disappointments; (2) cultivation of a positive mindset through developing mature and adaptive patterns of thought; and (3) investment of attention and effort in client strengths and successes (i.e., whatever serves the client’s life plan, hopes, or dreams), alongside a withdrawal of energy from whatever does not work well or serve the client’s goals. < back to home page
Behavioral Economics and Finance is a subfield of economics that integrates insights from psychology into the exploration and understanding of people’s financial behaviors. It posits that aspects of psychological functioning influence — and sometimes drive — financial behaviors, including investment decision making. < back to home page
Registered Life Planner® (RLP): Life Planning is a highly structured and dynamic inquiry that results in: (1) clarity about the “design” — the vision, dreams, and goals — of the client’s desired life; (2) identification of obstacles to those goals; and (3) an integrated, long-term Action Plan that addresses those obstacles and keeps the client moving effectively toward realization of the cherished vision of his or her ideal life. Learn more about Life Planning. < back to home page
Appreciative Inquiry (AI) is a collaborative, dynamic approach to growth, development, and problem solving. The AI process engages participants through unconditionally positive questions and conversations. The focus on their success experiences, their demonstrated strengths, and the values that animate them promotes a deeper and more positive understanding of self and family, the co-creation of an inspiring-yet-achievable vision of an optimal future, and launching of practical actions to bring this vision into being. < back to home page
Financial Psychology is the discipline that deals with the psychological bases of people’s relationships with money, and the behavioral expressions of beliefs, thoughts, and emotions related to money. Unexamined, an individual’s financial psychology operates largely out of conscious awareness; nevertheless, it drives behaviors such as saving, spending, and investing. It can also have important impacts on physical and mental health, self-esteem, identity, relationships, effectiveness in work, and sense of purpose in life. < back to home page
Financial Therapy (FT) is psychotherapy that helps clients resolve dysfunctional beliefs derived from the past and generated during the formative years of life. FT is often conducted in tandem with the specialized services provided by the client’s financial advisor, yielding the highest possible benefit to the client. The process of FT helps clients recognize the impacts of their entrenched money-related beliefs (i.e., “money scripts”) and financial behavior patterns, identify and mobilize strengths, and take action to bring about positive change in their relationships to money. < back to home page
Learn more about Financial Therapy by visiting Joan’s clinical Psychotherapy and Optimal Performance Coaching website: JoanCarrollCronin.com.