Psychology of Financial Planning

Question 1

What are the key principals to motivational interviewing?

Answer 1

TIP: “Motivate a client to climb the PEAC”

P=Partnership
E=Evocation
A=Acceptance
C=Compassion

Question 2

What are the Five Stages of Change?

Answer 2

TIP: “PCP in the AM will change you”

P=Precontemplation
C=Contemplation
P=Preparation
A=Action
M=Maintenance

Question 3

What are the techniques used to manage client biases?

Answer 3

TIP: “chip away biases like a GEODE”

G=Goals (Review the goals and objectives)
E=Environment (change the environment in which the decision is being made)
O=Objectives (Review the goals and objectives)
D=Devil’s Advocate (have the client play devil’s advocate for the opposing viewpoint)
E=Educate (educate the client on the topic)