The World of Financial Therapy with Sonya Lutter

How can advisors incorporate financial therapy skills and training into their practice?

In this episode, Sonya Lutter delves into the exciting and rapidly evolving world of financial therapy. She emphasizes the need for empathy in financial planning and outlines ways to identify certified financial therapists. She discusses how the financial advisory business is evolving towards a more human connection-driven approach and stresses why asking clients what's on their minds and saving time to address their needs is vital. Take advantage of valuable insights that can help you navigate your financial journey!

Sonya Lutter, Ph.D., CFP®, LMFT, serves as the inaugural Director of Financial Health and Wellness with Texas Tech University’s School of Financial Planning, where she leads curriculum and continuing education opportunities in financial psychology, financial therapy, and financial behavior. 

[00:01 - 08:04] Opening Segment

• Why financial therapy has become more prevalent

• The human side of financial planning and increasing stress about money

• The difference between financial therapy and the psychology of financial planning

• The controversy over whether a clinical degree is necessary for financial planners

[08:05 - 16:09] The Next Evolution of Financial Planning

• Financial therapy is the next evolution of financial planning

• Clients want a human connection in financial advisory

• Why some advisors are resistant to incorporating financial therapy into their practice

• Advisors should do their work on stress and relationships before helping clients

[16:10 - 24:19] Understanding the Physiological Effects of Stress on Financial Decision-Making

• Physiological stress can be measured through skin temperature and impacts decision-making

• How financial planning and relationships can be negatively impacted by stress

• Advisors should take note of clients' physiological stress and look for indicators

• Asking clients what's on their mind is vital for addressing their needs

[24:20 - 32:15] The Need for More Accessible Financial Education and Therapy

• Why financial literacy is a broader challenge across the population

• More publicly accessible information needed on financial therapy and deeper financial questions

• Scheduling intentional conversations about personal finance with spouse and children is important

[32:16 - 37:57] Closing Segment

• Openly discussing family finances with children can be beneficial

• How children can learn about money

Want to connect with Sonya? Follow her on LinkedIn and Twitter.  Visit Enlite, bridging the gap between financial planning and mental health. 

Key Quotes:

“I think we are experiencing right now the next evolution of financial planning, and we don't even know that it's happening right now. ” - Sonya Lutter

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