Sarah Newcomb at HUM South Africa 2022
Financial Psychology and the Money Mindset
At Humans Under Management South Africa 2022, Sarah Newcomb, Director of Financial Psychology at Morningstar, presented on the integral relationship between financial health and mindset.
The talk delves into the key question of how financial advisers can foster not only wealth but also well-being in their clients' lives. Newcomb highlights the importance of understanding the psychological aspects of financial decision-making.
Key Points:
- Financial health comprises both economic stability and psychological well-being, requiring advisers to assess both dimensions.
- Two critical mindset factors—mental time horizon and financial confidence—play significant roles in influencing clients' financial behaviours.
- Advisers can enhance their clients' financial health by encouraging long-term thinking and boosting confidence in managing unexpected financial challenges.
- Different mindsets, from vulnerable to masterful, can be identified and addressed to help clients achieve better financial outcomes.
Watching this video will equip financial advisers with actionable insights to improve client relationships and promote a holistic approach to financial coaching.
