Gorham Savings Bank (my local bank) recently posted this article.
We think she has a good point. We’re talking about Jane Honeck (website), Money Coach and Personal Financial Specialist in Falmouth and founder of a Portland accounting firm, Honeck-O’Toole CPAs. Her coaching methods could be called “Financial Therapy”. Let’s look at an analogy – when people are having problems in their personal relationships or have issues with depression, they might go to a psychotherapist for help. These professionals don’t just throw out industry “best practices” that apply to everyone, they strive to understand why people feel and act the way they do. But in financial advising, bankers (yes, we’re one), and investment advisors tend to focus more on goals and risk preference. Jane explores how spending habits might be related to social norms (like piling on Christmas or holiday presents!), or a reaction to our parents’ behaviors, or to compensate for insecurities. You can’t pave over these deeply rooted behaviors by just cutting out the morning double latte, refinancing a home, or investing in a high dividend paying mutual fund. Jane’s short book, “The Problem with Money” (reviews) is subtitled, “It’s not about the money!” This is not your typical “how to” book for money management. It addresses family history, educational background, cultural values, even spirituality to build a foundation. It goes on to help readers gain power over beliefs so that changes in financial behaviors naturally follow. This behavioral approach is a good addition to anyone’s arsenal of tools to improve their finances. By Gren Blackall, gorhamsavingsbank.com
What do you think?