Mental accounting, also known as money jar mentality:
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involves the tendency of individuals to mentally put their money into
separate accounts (or money jars) based on the purpose of these accounts.
Culturally competent:
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Planners should be culturally competent, focusing on knowledge that can
be learned about clients from other cultures. However, this is only a first
step. While helpful, cultural competency does not focus on the context in
which planners view the world, and this can lead to cultural bias.
Risk capacity:
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which also influences a client's risk assessment, is the degree to which a
client's financial resources can mitigate risks.
Sources of Financial Conflict:
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- Family-of-origin treatment of money
- Inadequate communication
- Different risk tolerance levels
- Adult children
- Blended families
- Cultural differences
- Inheritances
Representativeness bias:
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Give this one a try later!
involves the tendency of individuals to mentally put their money into
separate accounts (or money jars) based on the purpose of these accounts.
Culturally competent:
, Give this one a try later!
Planners should be culturally competent, focusing on knowledge that can
be learned about clients from other cultures. However, this is only a first
step. While helpful, cultural competency does not focus on the context in
which planners view the world, and this can lead to cultural bias.
Risk capacity:
Give this one a try later!
which also influences a client's risk assessment, is the degree to which a
client's financial resources can mitigate risks.
Sources of Financial Conflict:
Give this one a try later!
- Family-of-origin treatment of money
- Inadequate communication
- Different risk tolerance levels
- Adult children
- Blended families
- Cultural differences
- Inheritances
Representativeness bias:
Give this one a try later!
