Carol Kauffman PhD
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Psychology



Dr. Kauffman is the Behavioral finance columnist for the award-winning Financial Planning Magazine.

WHAT IS BEHAVIORAL FINANCE?
It is the application of principles of psychology to the understanding and management of money.  How we think and feel has a significant impact on our decisions.  No where is this more misunderstood than in the area of finances.  When you add the effects of every financial investor in the country together, these non-rational forces impact the value of investments on a  national and international level.   On an individual level, these misperceptions can have a profound personal impact which spills over to every aspect of life.

Coming soon: The five primary laws of behavioral finance made simple! Lessons from decision psychology.


WHAT IS FINANCIAL PSYCHOLOGY?
Financial psychology addresses the many "soft" issues associated with money. These can be focused on a wide range of issues:

  • What invisible forces influence how you invest your money?
  • What are the psychological effects of sudden gains or losses of income?
  • How can you identify "blocks" that keep you from making constructive financial decisions?

Financial planning organizations are now using psychologists or social workers as consultants because so-called simple problems can spiral out of control. Like trying to diet or exercise regularly, financial-fitness can look a lot easier to attain than it is.



WHAT IS THE VALUE OF MONEY?

Money means shockingly different things to different people.

For some, money = safety. Having it is simply a survival issue. In contrast, others feel that money = superiority. Having it is the ballast of their self-worth. Any decrease in finances means more than the money itself.

Money can equal power, or freedom or many, many things. As a result, issues that come up when money is changing hands, have a way of being baffling or spiraling out of control. The two parties involved may think they are arguing about the same thing, a particular sum of money, but in fact, they are not.

Coming soon: more on money; it's meaning and how to manage money conflicts.

July article in Financial Planning Magazine: The VIP Client: What to do when you land the client of your dreams and after the euphoria fades.

August Article in Financial Planning Magazine: Sizing up the Situation: what to do when your first meeting looks like its about to crash.


ABOUT FINANCIAL PLANNING MAGAZINE
The Financial Planning profession continues to enjoy phenomenal growth. Allied professionals such as bankers, brokers, insurance agents and accountants are expanding their practices into Financial Planning. Our editorial focus has expanded to meet the needs of these new readers while remaining true to our fundamental mission: to cover the people, strategies, products and industry developments affecting Financial Planning professionals.

Financial Planning's commitment to offering successful strategies and powerful, practical solutions to the adviser means maximum visibility and penetration for your advertising efforts. Financial Planning provides you with: The largest qualified audience -- we reach over 100,000* qualified professionals, more than any other industry publication.

For more than three decades, Financial Planning has been the leading magazine for independent financial advisers and money managers. With its timely, substantive and award-winning articles covering all aspects of this evolving profession, Financial Planning is essential reading for more than 100,000* leaders and decision-makers in the financial advisory industry.

Articles available in "In the News"

        

Carol@CarolKauffman.com

Carol Kauffman © 2002-2003