road to retirement. financial psychology $ $ $ the most important thing f1 ? what motivates you to...
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Road to Retirement
Financial Psychology
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The Most Important Thing
F1
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What motivates you to obtain money?
The Most Important Thing
• Live a desired lifestyle.• Take care of my family.• Eliminate stress and worry about bills, debt, and
retirement. • Freedom to do what I want, when I want.• Independence, security, and self-sufficiency.• Make a positive impact on the world.• Feel secure with my ability to retire and stay
retired. • Toys, status, travel, and other “things.”
F1
The Most Important Thing
F1
Reasons For Reasons Against .
Ben Franklin Planning
How Does Financial Psychology Develop?
F2
Where Did You Learn About Money?
F3
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Robert Plutchik’s Wheel of Emotions:
• Fear → the feeling of being afraid, shocked, or scared.
• Anger → feeling angry or enraged.
• Sadness → feeling sad. Other words that describe sadness are sorrow, grief, and depression.
• Joy → feeling happy, glad.
• Disgust → feeling something is wrong or dirty.
• Trust → this also includes admiration and acceptance.
• Anticipation → the sense of looking forward positively to something which is going to happen.
• Surprise → how you feel when something unexpected happens.
Money and Emotions
F4
• The Transtheoretical Model of Behavior Change provides a framework to quantify a persons willingness to change. (Prochaska & DiClemente, 1983; Prochaska & Velicer, 1997) o Assesses ones readiness to act on a new
healthier behavior.o Often used when addressing addictions
• The six processes of change:o Precontemplation o Contemplationo Preparationo Actiono Maintenanceo Termination
Changing Your Financial Behavior
F5
• Precontemplation Stageo No intent to take action in the near future.
o Many are unaware that their behavior is problematic.
o The NFEC uses long-term awareness strategies to move them to the next stage.
o Denial, who cares, it wont help, it’s a waist of time.
• Contimplation Stageo Are beginning to realize their behavior is problematic.
o Have begun looking at the benefits and drawbacks of their continued actions.
o The right educator can influence people into the next level of change.
o The NFEC educator training leverages neuro-linguistic programming and strong benefit/consequence-driven curriculum to influence participants toward taking action.
Changing Your Financial Behavior
F5
• Preparation Stageo Intend to take action.
o At this stage, guidance and knowledge can provide the impetus for participants to begin moving forward.
o Since many people simply lack direction, the NFEC training offers step-by-step directions aimed at instilling confidence in their skills as they work toward their personal financial goals.
• Action
• Action Stageo Made some positive modifications in their lifestyles.
o Once participants reach this stage, continued reinforcement for their efforts through ongoing training and support is crucial.
o Follow-up training is helpful to keep the participants momentum.
Changing Your Financial Behavior
F5