Love & other assets Navigating financial conversations together featuring Dr. Megan McCoy
In this episode of the Love and other assets podcast, Emily Luk welcomes Dr. Megan McCoy. Megan McCoy, Ph.D., LMFT, AFC®, CFT-I™, works in the Financial Planning Department in the College of Health and Human Sciences at Kansas State University where she serves as the program director for the Financial Planning Master's Program. She is a licensed Marriage and Family Therapist, an Accredited Financial Counselor®, and a Certified Financial Therapist-I™. She discusses financial therapy, a field that blends financial planning and mental health, aiming to address the intersection between money and overall well-being. Dr. McCoy shares personal anecdotes about her own journey with money, explaining how her avoidance of finances stemmed from a childhood desire to "save the world" and a belief that making money and saving the world were incompatible. She highlights how individual and couples' beliefs about money often stem from their childhood experiences, emphasizing the need to acknowledge and understand those deeply ingrained beliefs.
The conversation delves into common challenges couples face in navigating financial conversations, including polarization, over and under functioning, and differing spending habits. Dr. McCoy offers practical tips for addressing these challenges, suggesting open communication, understanding individual motivations, and using tools like "I statements". She also stresses the importance of recognizing and celebrating each partner's contributions, even those that may not be immediately visible. The conversation covers the significance of goal setting and the power of breaking down large goals into smaller, achievable steps. She recommends utilizing mental accounting, separating financial goals into distinct buckets, and focusing on experiences over material possessions. Finally, Dr. McCoy encourages listeners to embrace "boring investing" strategies for long-term financial security and reminds them that navigating financial challenges is a journey of growth and learning.
What we discussed
- Understanding Money Beliefs: Dr. McCoy highlights how personal and couple's beliefs about money are often deeply rooted in childhood experiences and family dynamics. Recognizing and unpacking these beliefs is crucial for healthier financial management.
- Navigating Financial Conversations: The episode emphasizes the importance of open communication and establishing ground rules for couples when discussing finances. This includes respecting differences, avoiding blame, and focusing on solutions.
- Addressing Polarization and Role Dynamics: Dr. McCoy discusses how couples can fall into polarized roles, such as the "over-functioner" and the "under-functioner," when it comes to money. She encourages conscious awareness of these patterns and finding ways to share financial responsibilities more equitably.
- The Importance of Goal Setting and Prioritization: The conversation explores the significance of both individual and shared financial goals. Dr. McCoy suggests breaking down large goals into smaller steps, utilizing mental accounting to manage resources, and understanding the motivations behind each individual's goals.
- Avoiding Financial Anxiety and Embracing Long-Term Investing: The episode addresses the common fear of investing, particularly after experiencing losses. Dr. McCoy advocates for a long-term, diversified investment strategy and encourages listeners to embrace the power of consistent saving and investing.
Listen to the full episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.
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SELECTED LINKS FROM THE EPISODE
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