Study finds a change of perspective can have a positive impact on clients’ financial wellbeing
Having a “bigger picture” mentality could be the key to improving your clients’ financial decision making, according to a new survey.
The survey, published by Capital One and behavioural science think tank The Decision Lab, revealed that stress from financial decisions caused 43% of participants to feel tired, 42% to have difficulty concentrating at work, and 41% from sleeping soundly at night.
The survey also found that 77% of participants reported feeling anxious about their financial situation, with 58% feeling that finances control their lives.
What’s worrying is that elevated levels of stress could lead to bad financial practices, with the survey finding that stressed participants are less likely to save on a regular basis, less likely to plan their spending, and more impulsive with how they spend their paycheque.
However, Andy Navarrete, executive vice president and head of external affairs at Capital One, said that a change of perspective can have a positive impact on our financial wellbeing.
“We partnered with The Decision Lab to uncover ways to reduce the effects of stress on our financial decisions and found that ‘bigger picture' thinking about long-term goals for even a few seconds can lead to healthier financial behaviours,” said Navarrete.
No one understands the “bigger picture” more than professional football player and financial literacy instructor Brandon Copeland – and Capital One partnered with the outside line-backer to come up with some financial tips to help develop a “big-picture” mindset. Copeland’s advice includes always keeping goals in front of you, focusing on the values and not sweating the details, and not punishing yourself for financial mistakes committed in the past.
“As a professional athlete, I am aware of how stress can cloud my decisions on the field and my finances off the field," said Copeland. “I am inspired to help people create a positive financial outlook by implementing healthy financial rituals.”
