Week 5 Flashcards
what are the three Global Cultural Patterns
and explain
(Invidualist, Collective Harmony, and Honour)
why does this matter?
1. Individualist Cultures (e.g., U.S., Canada, UK, Australia)
* Prioritize individual merit, personal goals, and accountability.
* Open, direct communication is valued.
* Trust is built through actions and transparency.
2. Collective Harmony Cultures (e.g., China, Japan, Korea)
* Family and societal harmony are central.
* Avoids direct confrontation and values indirect communication.
* Decision-making often involves elders and extended family.
3. Honor Cultures (e.g., Middle East, India, Latin America)
* Strong family/clan structures for protection and reputation.
* Trust takes time to develop; broad agreements may be preferred over legal details.
Hierarchical family structures influence financial decisions.
Global patterns can help planners make adjustments in their thinking
What are the 3 ways can we do to undertand global patterns with our clients?
- Understand out clients
○ Take time building the relationship and establishing trust, depending on what their global cultural patterns - Be patient and flexible
○ Consider using indirect talk, let client take the lead on what they’re comfortable sharing - Be careful making assumptions
○ Cultural differences are more apparent in our global understanding, don’t make any assumptions, and make sure you understand the person’s background
Money can influence
Money is complicated as it influences
* Ethnicity
* Race
* Gender
* Age
* Religion
what are the 7 Steps to Culturally Responsive Financially Therapy
1. Know your Culture
○ Cultural influences are impactful
○ Offers awareness for your own biases
2. Recognize your Privilege
○ Acknowledge areas where you benefit
○ Identity areas where you don’t
3. Learn about your Client’s Culture
○ Be curious and open
4. Demonstrate respect for culturally related strengths
○ Understand where cultural beliefs differ
5. Distinguish between the internal and external components of a problem
○ Internal problems might be problematic money scripts
○ External problems may be related to culture or oppression
6. Validate oppressive experiences
○ Often referred as “micro aggressions”
○ To dismiss that experience is deeply harmful
7. Do not challenge core cultural beliefs
○ Self-defeating beliefs -yes
○ Cultural beliefs - no
Fiancial planners must be aware of cultural beliefs, values, experiences, and norms that their clinets are used to… adjust your approach to acommdate them
Be aware of Biases which mean
Bias: think, act, feel in a particular way
How to idnetify a minority group use the acronym:
“ADRESSING”
Ex. A is for Age and generational influences
Ex. D is for Developmental and acquired Disabilities
Ex. R is for religious
E : E is for Ethnic
Ex. S is Sexual Orientation
Ex. S is Socioeconomic
Ex. I is for Indigenous
Ex. N is for National orgin
Ex. G is for Gender
Why is there a need for Cultural intelligence? for Fiancial Planners?
- The client base is shifting due to globalization.
- Increased immigration from China & India over Latin America.
- More wealthy international families settling in North America.
- Cross-cultural marriages and blended families are rising.
- Financial planners must develop new skills to serve diverse clients.
Planners typically:
* Engage deeply in clients’ financial and personal lives.
* Assume the individual client is the primary decision-maker.
* Use active listening to identify emotional barriers.
* Ask clarifying, direct questions.
* Build trust through reliability and transparency.
However, these approaches may backfire with clients from non-Western cultures.
However in some cultures, approaches to differnet people need to be different
Multicultural competence involves an “_” process of self-education and acquiring skills to understand the unique cultural experiences of clients
ongoing
What are the Seven Steps to Culturally Responsive Financial Therapy (explain the first 3)
Step 1: Know Your Own Culture
* Financial planners must recognize how their own cultural background influences their approach to money and planning.
* Biases come from personal experiences and socialization, often unnoticed by those in dominant cultural groups.
* Example: A White American advisor dismisses a Latino client’s preference for immediate spending due to cultural experiences with inflation.
* Key Tool: ADDRESSING Model—a framework to identify personal cultural influences:
○ Age
○ Disability
○ Developmental disabilities
○ Religion
○ Ethnicity
○ Socioeconomic status
○ Sexual orientation
○ Indigenous heritage
○ National origin
○ Gender
Step 2: Recognize Your Privilege
* Privilege is often invisible to those who have it.
* Example: White financial planners may not realize that their race contributes to their credibility.
* Exercise: Planners should list out their ADDRESSING attributes and mark where they hold dominant group status.
* Recognizing privilege helps planners understand gaps in their cultural knowledge.
Step 3: Learn About Clients’ Cultures
* Clients from different backgrounds have unique money values, traditions, and expectations.
* Examples:
○ Latino families emphasize interdependence over individual wealth accumulation.
○ African American and Latino families are more likely to provide financial support for aging parents.
○ Women, on average, exhibit less financial risk tolerance than men, but cultural differences impact this.
* Planners should avoid stereotyping and instead learn individual client perspectives.
What are the Seven Steps to Culturally Responsive Financial Therapy (explain the last 4)
Step 4: Demonstrate Respect for Cultural Strengths
* Respect is culturally defined and varies between communities.
* Examples of Respectful Practices:
○ In Latino cultures, warm personal relationships and small talk build trust.
○ Among Native American clients, excessive questioning may be seen as intrusive.
○ Muslim clients may prefer gender-specific interactions.
* Acknowledging culturally specific financial habits (e.g., religious tithing, extended family support) enhances client trust.
Step 5: Distinguish Between Internal and External Financial Challenges
* Internal Challenges: Beliefs or cognitive biases about money (e.g., “I’ll always be in debt”).
* External Challenges: Systemic barriers such as racism, sexism, ableism, or financial discrimination.
* Example: A person with disabilities may struggle financially due to higher costs of living and workplace discrimination.
* Effective financial planning requires addressing both psychological and systemic obstacles.
Step 6: Validate Oppressive Experiences
* Many clients from marginalized groups experience microaggressions and discrimination.
* Microaggressions are subtle, often unintentional, but still harmful (e.g., assuming a Black client is less financially knowledgeable).
* Example: A White financial planner dismisses a gay couple’s concerns about discrimination in a new town. The couple chooses another advisor.
* Planners should listen, acknowledge, and validate client experiences rather than dismissing them.
Step 7: Do Not Challenge Core Cultural Beliefs
* Some beliefs are deeply tied to cultural identity and should not be questioned.
* Example: A religious African American woman tithes 10% of her income. A financial advisor suggests delaying donations to maximize retirement savings, which alienates the client.
* Better Approach: Help clients align financial goals within their cultural values rather than challenging them.
