Intro -- Client Psychology -- Contents -- Acknowledgments -- Preface -- References -- About the Contributors -- Chapter 1 Client Psychology -- References -- Chapter 2 Behavioral Finance -- What Is Behavioral Finance? -- Applications of Behavioral Finance in Understanding and Changing Clients’ Behavior -- Risk Tolerance, Risk Capacity, and Client Risk Perceptions -- Overconfidence Bias -- Financial Literacy and Financial Capability -- Summary -- References -- Chapter 3 Understanding Client Behavior: Rational or Irrational? -- Bounded Rationality -- Sunk Cost Fallacy -- Flat Rate Bias -- Summary -- References -- Chapter 4 Heuristics and Biases -- System 1 and System 2 -- Heuristics -- Representativeness -- Availability -- Anchoring and Adjustment -- Bias Reduction -- Modify the Decision-Maker -- Change the Decision-Making Environment -- References -- Chapter 5 Decision-Making under Risk -- Expected Utility Theory -- Violations of Expected Utility Theory -- Prospect Theory -- Overview -- Effects in Prospect Theory -- Endowment Effect -- Status Quo Bias -- Disposition Effect -- Implications for Research and Practice -- Research -- Practice -- References -- Chapter 6 The Role of Mental Accounting in Household Spending and Investing Decisions -- Mental Accounting as Categorization -- Methods for Categorizing Funds -- Sources and Uses of Funds -- Sets of Choices and Outcomes -- Budgeting -- Implications for Financial Planning Practice -- Assets versus Debts -- Potential Benefits -- Potential Errors -- Implications for Investing -- Opening and Closing Accounts -- What Assets to Purchase -- Concluding Remarks and Future Research -- Formation and Evolution of Mental Accounts -- Mental Accounting Interactions -- Mental Accounting and Technology -- Mental Accounting and Well-Being -- References -- Chapter 7 Intentional Choice Architecture.

Are You an Intentional Choice Architect? -- Principle 1: Humans Have Limitations -- Principle 2: Humans Use Reference Points to Make Decisions -- The Choice Architect’s Opportunity -- The Case for Intentional Choice Architecture: Retirement Savings -- Plan Participation, Deferral Rates, and Default Investment Options -- From Awareness to Action -- References -- Chapter 8 Cognition, Distraction, and the Financial Planning Client -- Influences on the Frame of Mind -- Intuitive Processing (System 1) -- Deliberative Processing (System 2) -- Emotion, Stress, and Touch -- Emotion -- Stress -- Physical Touch -- Choice and Cognitive Overload -- Asymmetric Dominance -- Less Is More -- Visual Portrayal of Data -- Losses and Gains -- Cognitive Resource Depletion -- Thinking Slow in a Fast World -- Implications for Financial Planning Professionals -- References -- Chapter 9 Personality and Financial Behavior -- Models of Personality -- The Big Five -- HEXACO -- The Relationship between Personality and Financial Behavior -- Openness to Experience -- Working with Open Clients -- Conscientiousness -- Working with Conscientious Clients -- Extroversion -- Working with Extroverted Clients -- Agreeableness -- Working with Agreeable Clients -- Neuroticism -- Working with Neurotic Clients -- Connecting Personality to Financial Behavior through Theory -- Personality Measurement -- Implications for Research and Practice -- Future Direction -- References -- Chapter 10 Risk Literacy -- Berlin Numeracy Test -- Healthcare Applications -- Financial Applications -- Risk Literacy and Financial Planning -- Conclusion -- References -- Appendix -- Berlin Numeracy Test for General Population -- Berlin Numeracy Test for Educated Population -- Chapter 11 Automated Decision Aids: Understanding Disuse and Designing for Trust, with Implications for Financial Planning.

Mechanical versus Holistic Judgment -- Algorithm Aversion and Automation Disuse -- Trust in Automated Systems -- Developing Trust -- Complacency -- Conclusion -- References -- Chapter 12 Self-Determination Theory and Self-Efficacy in Financial Planning -- Self-Determination Theory -- Self-Efficacy -- References -- Chapter 13 Marriage and Family Therapy, Financial Therapy, and Client Psychology -- Marriage and Family Therapy -- Treatment Issues -- Family Systems Theory -- Major Theoretical Assumptions and Concepts -- Family Systems and Client Psychology -- Education -- Financial Therapy -- Building Alliances with Families and Couples -- Common Factors -- Referrals and Collaborations -- Assessment -- Conclusion -- References -- Chapter 14 Client Diversity: Understanding and Leveraging Difference to Enhance Financial Planning Practice -- Understanding the Concept of Diversity -- What Is Diversity? -- How Does Diversity Work? -- The Business Value of Diversity -- Leveraging Client Diversity -- Approaches to Diversity -- Practice Perspectives -- Building a Diverse Clientele -- Inclusive Relationship Management -- Developing and Leveraging Diverse Networks -- Conclusion -- References -- Chapter 15 Client Psychology: The Older Client -- Introduction -- Waves of Gray -- What Is Aging? -- Normal Cognitive Aging -- Age-Related Changes in Brain Structure and Function -- Language -- Visuospatial Ability -- Attention -- Processing Speed -- Memory -- Executive Function -- Aging and Economic Decision-Making -- Learning -- Reaction to Gains and Losses -- Intertemporal Decision-Making -- Probabilistic (Risky) Decision-Making -- Framing Effects -- Overconfidence -- Compensation and Adaptation -- Concerning Signs -- Supporting Older Clients -- Distinguishing Normal from Concerning Cognitive Change -- Research Challenges -- Final Thoughts -- References.

Chapter 16 Financial Psychology -- Financial Psychology -- Social Psychology -- Developmental Psychology -- Psychology of Personality -- Multicultural Psychology -- Positive Psychology -- Humanistic Psychology -- Financial Psychology for Financial Planners -- Cognitive Behavioral Techniques -- Motivational Interviewing Techniques -- Solution-Focused Techniques -- Positive Psychology Techniques -- Experiential Techniques -- Conclusion -- References -- Chapter 17 Money Disorders and Other Problematic Financial Behaviors -- Literature on Money Disorders and Related Financial Behaviors -- Compulsive Buying Disorder (CBD) -- Gambling Disorder -- Hoarding Disorder -- Workaholism -- Financial Dependence -- Financial Enabling -- Financial Denial -- Financial Enmeshment -- Addressing Money Disorders and Related Financial Behaviors -- Assessment -- Motivational Interviewing -- Case Studies -- Overspending and Compulsive Buying Disorder -- Case Overview -- Financial and Psychological Symptoms -- Possible Actions -- Financial Denial or Avoidance -- Case Study -- Financial and Psychological Symptoms -- Possible Actions -- Financial Enabling and Dependency -- Case Study -- Financial and Psychological Symptoms -- Possible Actions -- References -- Chapter 18 Situation Awareness in Financial Planning: Research and Application -- Perception -- Comprehension -- Prediction -- Financial Planning Practice -- An Applied Example -- Future Directions -- References -- Chapter 19 Final Remarks -- References -- Index -- EULA.