Posts Tagged "control"
June 23, 2011
Finding Motivation to Control Spending
In a May 5 Squared Away blog post, I provided a list of financial planners’ five favorite tools for helping people control their spending. In this post, I’m providing their motivational suggestions.
Here are the five tips, based on my informal survey of planners. Each tip includes the psychological rationale behind it.
Find the “Aha! Moment.”
Some clients respond when they see, in detail, how much they’re spending and what they’re buying. Bonnie A. Hughes, a northern Virginia planner, is a big believer in mild shock therapy. She’s had great success by showing clients how much their income would fall if they were laid off, divorced, or dropped out of the workforce. Or she shows them just how much they’ll need in retirement, and it’s usually a big number.
Reason: The Aha! Moment provides the self-motivation that clients must possess and that planners can’t provide. …Learn More
May 5, 2011
Financial Success Begins at Age 3
Professionals trying to improve Americans’ financial literacy pour time and energy into developing school curricula that will help create a generation of financially competent adults.
But something else we can instill in our children may have a greater influence than education on their financial success later in life: self-control.
A recent study, led by researchers at Duke University and King’s College London and published in the Proceedings of the National Academy of Sciences, found that the self-control children develop as early as age 3 – before formal schooling begins – is a powerful predictor of whether they will save more as adults or will be hooked on credit cards.
“Poor self-control in childhood was a stronger predictor of these financial difficulties than study members’ social class origins and IQ,” the authors concluded. …Learn More
May 5, 2011
5 Tools to Control Spending
Financial planners say poor spending habits are their biggest obstacle to helping clients.
So I asked a dozen financial planners around the country – all members of the National Association of Personal Financial Advisors (NAPFA) – to share their best tools and tips.
This week I’ll provide the five “best” tools and the reason planners like them. Next, I’ll post planners’ top five motivational tips. …Learn More