Helping clients cope with fear

Financial Coaching

Helping Clients Cope with FearNAPFAFebruary 29, 2016@docgresh

http://www.slideshare.net/docgresh/helping-clients-cope-with-fearAtlanta Financial PsychologyMary Gresham, Ph.D.

Atlanta Financial PsychologyMary Gresham, Ph.D.

Fear, Anxiety, StressFear: Immediate threatAtlanta Financial PsychologyMary Gresham, Ph.D.

Fear, Anxiety, StressFear: Immediate threat response

Anxiety: Generalized experience, uncertain or negative future


Fear, Anxiety, StressFear: Immediate threat response

Anxiety: Generalized experience, uncertain or negative future

Stress: Physiological response



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Fear Neutral


This is your brain on fearfMRI results when shown a picture of fearful faces; other ways to induce fear for studies is to have subjects anticipate electric shock or cold pain, use recollections and imagery; play loud noises including sounds of people screaming; and to increase the amount of carbon dioxide in the blood so that subjects gasp for oxygen.and money loss..8


Gregory Berns of Emory has also used money losses and shown that subjects responded to money loss similarly to electric shock. Subjects had higher body response to shock but rated money loss as subjectively equal to shock.9


Anxiety has to do with our uncertain future, or anticipating a negative future event.10

Over a lifetime an average US citizen has a 28% chance of having characteristics of anxiety disorder. This is the largest category in the USpeaks during years from 30-44.11

APA Stress In AmericaAtlanta Financial PsychologyMary Gresham, Ph.D.

In the last yearAtlanta Financial PsychologyMary Gresham, Ph.D.

moneyAtlanta Financial PsychologyMary Gresham, Ph.D.

The importance of money

The series of experiments in social psychology that have been done in the lab are called money priming experiments and Subtle hints of money are introduced, for example using a screensaver with dollars floating vs a screensaver with fish floating. People are largely unaware of the impact of money hints on their behavior. Researcher Kathleen Vohs found that people respond to money primes by preferring to work alone, not asking for help, offering less help to others, working harder at impossible tasks, feeling less physical discomfort and feeling less social discomfort when excluded. The conclusion is that money increases a feeling of self-sufficiency and reduces engagement with others.15

Social exclusion Atlanta Financial PsychologyMary Gresham, Ph.D.

Counting money reduced the reaction of the brain to social exclusion.16

Physical painAtlanta Financial PsychologyMary Gresham, Ph.D.

Counting money reduced the physical pain of immersing hand in 122 degree water17

Atlanta Financial PsychologyAtlanta Financial Psychology

The Money Taboo

the avoidance of meaningful, contained discourse about money

What does this mean for financial advisers?


Clients will be bringing their fears, anxieties and stress to YOU19



By now you have heard the metaphor of the brain as consisting of a crocodile bottom layer, an elephant midbrain and scientist riding on the back of an elephant, trying to control it. So your job, then is to become the elephant whisperer for the midbrains of some of your clients.21

Dr. Gregory Berns


When clients are fearfulShort-term time frameAtlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseAtlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseUnderspend, overspend or overpayAtlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseUnderspend, overspend or overpayPurchase the wrong productsAtlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseUnderspend, overspend or overpayPurchase the wrong productsAvoid important tasksAtlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseUnderspend, overspend or overpayPurchase the wrong productsAvoid important tasksDont make changes Atlanta Financial PsychologyMary Gresham, Ph.D.

When clients are fearfulShort-term time frameRisk averseUnderspend, overspend or overpayPurchase the wrong productsAvoid important tasksDont make changes Obsess over decisions or act on impulseAtlanta Financial PsychologyMary Gresham, Ph.D.

Rational approach



Emotional Regulation

When clients feel listened to, accepted and understood they begin to calm; they then need to have emotional labels and make sense of their emotions. Emotions are accepted and understood to be of value.32




Focus on body sensation; as client describes and focuses, they become more aware and in the present.34


Metaphors, imagery and expressive language are useful in making an emotional connection. Some clients do not want to directly identify emotions and use of metaphor is easier for them. Metaphors also shift perspective and allow clients to do things differently.35

Storytelling


Story telling can be a powerful way to communicate without raising resistance.36


Mindfulness and mediation practices assist clients with emotional regulation37



ReframingAtlanta Financial PsychologyMary Gresham, Ph.D.

Challenge, opportunity, life experience that will be valuable40

Identify Other AssetsAtlanta Financial PsychologyMary Gresham, Ph.D.

Self-DisclosureI dont know if this is helpful but when I have felt this way, I have __________


ExperimentsClients will do things as an experiment that they will not do as a changeAtlanta Financial PsychologyMary Gresham, Ph.D.

ExperimentsClients will do things as an experiment that they will not do as a changeIncreases a sense of controlAtlanta Financial PsychologyMary Gresham, Ph.D.

ExperimentsClients will do things as an experiment that they will no do as a changeIncreases a sense of controlIncreases self-observationAtlanta Financial PsychologyMary Gresham, Ph.D.

ExperimentsClients will do things as an experiment that they will no do as a changeIncreases a sense of controlIncreases self-observationExperiential learningAtlanta Financial PsychologyMary Gresham, Ph.D.

ExperimentsClients will do things as an experiment that they will no do as a changeIncreases a sense of controlIncreases self-observationExperiential learningGet information about the outcomeAtlanta Financial PsychologyMary Gresham, Ph.D.

Financial experimentsListen to music instead of newsAtlanta Financial PsychologyMary Gresham, Ph.D.

Financial experimentsListen to music instead of newsCheck pictures of grandchildren instead of portfolioAtlanta Financial PsychologyMary Gresham, Ph.D.

Financial experimentsListen to music instead of newsCheck pictures of grandchildren instead of portfolioGive away some money


Financial experimentsListen to music instead of newsCheck pictures of grandchildren instead of portfolioGive away some moneyOpen a paper trading account and do there what you are proposing to doAtlanta Financial PsychologyMary Gresham, Ph.D.

Financial experimentsListen to music instead of newsCheck pictures of grandchildren instead of portfolioGive away some moneyOpen a paper trading account and do there what you are proposing to doPick a time to deliberately worry about money for 15 minutes daily and/or leave your worry here in my office.Atlanta Financial PsychologyMary Gresham, Ph.D.

Ounce of preventionInitial meeting: prior negative experiences with money?


Ounce of preventionInitial meeting: prior negative experiences with money?How are you likely to respond if.


Ounce of preventionInitial meeting: prior negative experiences with money?How are you likely to respond if.What will you need then?


Ounce of preventionInitial meeting: prior negative experiences with money?How are you likely to respond if.What will you need then?Lets write it down


Adviser challengesOwn fear, anxiety and stress


Adviser challengesOwn fear, anxiety and stressImpatience with extra effort required


Adviser challengesOwn fear, anxiety and stressImpatience with extra effort requiredMarket factors affect all clients at the same time


Adviser challengesOwn fear, anxiety and stressImpatience with extra effort requiredMarket factors affect all clients at same timeLack of training in dealing with client emotions



Goals is to have client slow down and self-calm. Acting out feelings is not helpful, move to responsivity and not reactivity.61


Thank youAtlanta Financial PsychologyMary Gresham, Ph.D.






Economy & Finance

Helping clients cope with fear