greshams model for financial health

Dr. Mary GreshamDr. Mary Gresham2801 Buford Highway Suite 2602801 Buford Highway Suite 260

Atlanta, Ga. 30329Atlanta, Ga. 30329404-320-6510404-320-6510

www.atlantafinancialpsychology.comwww.atlantafinancialpsychology.com

Gresham’s Model of a Gresham’s Model of a Healthy Relationship with Healthy Relationship with

MoneyMoney

What is your What is your definition of a definition of a

healthy relationship healthy relationship with money?with money?

Your model influences your work Your model influences your work beyond your awarenessbeyond your awareness

Your clients will benefit by looking Your clients will benefit by looking at their own definitionsat their own definitions

If you don’t, someone else will.If you don’t, someone else will. This works helps you connect with This works helps you connect with

your clients at a deeper level.your clients at a deeper level.

WhyWhy define it? define it?

Mathematical/RationalMathematical/Rational

Values/SpiritualValues/SpiritualEmotional/RelationalEmotional/Relational

ProcessProcess

A Whole Relationship with A Whole Relationship with MoneyMoney

Gives a theoretical framework for a Gives a theoretical framework for a healthy relationship with money that is healthy relationship with money that is easily understood by clients.easily understood by clients.

When asked about, defines the client When asked about, defines the client relationship.relationship.

Helps us define the strengths and Helps us define the strengths and weaknesses of clients in a non-weaknesses of clients in a non-judgmental way.judgmental way.

Rational/Rational/MathematicalMathematical

This type of discourse is purely rational This type of discourse is purely rational and numerically basedand numerically based

Where many financial professionals are Where many financial professionals are most comfortable and prefer to connect.most comfortable and prefer to connect.

Men are socialized to have these kinds Men are socialized to have these kinds of money conversations and women are of money conversations and women are socialized to avoid these kinds of socialized to avoid these kinds of conversations.conversations.

ExamplesExamples Your portfolio decreased 4% in Your portfolio decreased 4% in

the first quarter of the year. The the first quarter of the year. The primary contributor was the poor primary contributor was the poor performance of the XYZ fund but performance of the XYZ fund but that was partly offset by the that was partly offset by the performance of the ABC fundperformance of the ABC fund


Must have skills to track spending, Must have skills to track spending, savings, net worth, make investment savings, net worth, make investment choices, plan for retirementchoices, plan for retirement

For some clients, this is the last level of For some clients, this is the last level of developmentdevelopment

For some clients, this is level at which they For some clients, this is level at which they want to connect first and/or the only level want to connect first and/or the only level of interestof interest


Values/SpiritualValues/Spiritual

Values/SpiritualValues/Spiritual Refers to important and enduring Refers to important and enduring

thoughts, beliefs, ideals and thoughts, beliefs, ideals and attitudes towards money.attitudes towards money.



Determines guidelines for Determines guidelines for behaviorbehavior



Determines guidelines for Determines guidelines for behaviorbehavior

Often assumed but not articulatedOften assumed but not articulated

““See? IsnSee? Isn’’t this better than being happy?t this better than being happy?””

Values ConversationsValues Conversations

How much of your eligible How much of your eligible contribution will you be putting in contribution will you be putting in your retirement fund this year?your retirement fund this year?Are you giving to a charity this Are you giving to a charity this year?year?What kind of trust do you wish to What kind of trust do you wish to set up for your children?set up for your children?

Values conversationsValues conversations

Safe, non-judgmental, structuredSafe, non-judgmental, structured



Differences acknowledged and Differences acknowledged and integratedintegrated



Differences acknowledged and Differences acknowledged and integratedintegrated

Related to age, gender, culture, Related to age, gender, culture, behaviorbehavior

Money and MeaningMoney and Meaning

Project done at the Ackerman Project done at the Ackerman Institute in New York with financial Institute in New York with financial advisers and therapists collaborating advisers and therapists collaborating to identify a values framework for to identify a values framework for money conversationsmoney conversations

Card sort activity that is fun and Card sort activity that is fun and engagingengaging

ExamplesExamples PersonalPersonal SpiritualSpiritual EconomicEconomic PhilanthropyPhilanthropy Relationships,Relationships, CultureCulture WorkWork EducationalEducational

RecreationalRecreational MaterialMaterial Public ServicePublic Service FinancialFinancial PhysicalPhysical Ethical.Ethical.

Benefits of values workBenefits of values work

Using values helps guide decisionsUsing values helps guide decisions

Identification of discrepancy between Identification of discrepancy between behavior and values can be addressedbehavior and values can be addressed

Looking at the areas of discrepancy Looking at the areas of discrepancy promotes working on the underlying promotes working on the underlying issuesissues

ExerciseExercise

How did your values apply to your How did your values apply to your most recent financial decision?most recent financial decision?

This exercise opens the door to discuss This exercise opens the door to discuss a discrepancy between beliefs and a discrepancy between beliefs and behavior.behavior.

Emotional/symbolic Emotional/symbolic conversationsconversations

Non-verbal cues are most important Non-verbal cues are most important indicators that the person is indicators that the person is operating on the emotive level: operating on the emotive level:

Voice toneVoice tone BreathingBreathing Body languageBody language Facial expressionFacial expression

Emotional/SymbolicEmotional/Symbolic

Where many financial professionals Where many financial professionals become uncomfortablebecome uncomfortable

Lack of framework makes it harder to Lack of framework makes it harder to deal with emotions about moneydeal with emotions about money

Where women can be most engaged Where women can be most engaged in the issues about moneyin the issues about money

Men are socialized to avoid this realmMen are socialized to avoid this realm

Connecting at the Connecting at the emotional/symbolic levelemotional/symbolic level

Where you can differentiate Where you can differentiate yourself and your practiceyourself and your practice

Develop skills and a model for Develop skills and a model for this areathis area

Look at your own money issues Look at your own money issues or develop a relationship with a or develop a relationship with a counseling professionalcounseling professional

Emotions signal core concernsEmotions signal core concerns

AppreciationAppreciation

AffiliationAffiliation

AutonomyAutonomy

StatusStatus

RoleRole



ProcessProcess

ProcessProcess

Learning how to step out of an Learning how to step out of an interaction and comment on what is interaction and comment on what is happeninghappening

A learned skillA learned skill Reduces conflict and gives a Reduces conflict and gives a

framework for the interactionframework for the interaction

Process commentaryProcess commentary

Process values cardsProcess values cards

Inclusive: all includedInclusive: all includedExclusive: some excluded based on Exclusive: some excluded based on age, gender, bloodlineage, gender, bloodlineCollaborativeCollaborativeEgalitarian: equality is the defining Egalitarian: equality is the defining principleprincipleTransparent: open to allTransparent: open to all

Process Values CardsProcess Values Cards Transparent: open to allTransparent: open to all Hierarchical: one individual Hierarchical: one individual

dominates, autocraticdominates, autocratic Empowerment: other members Empowerment: other members

authorized for decisionsauthorized for decisions Dialogue: encourage discussion and Dialogue: encourage discussion and

hear all points of viewhear all points of view Reflective: research and gather info, Reflective: research and gather info,

contemplate and explorecontemplate and explore

Types of processTypes of process

What are other process descriptions What are other process descriptions you have noted in working with you have noted in working with clients?clients?

All levels are importantAll levels are important

Financial healthFinancial health

When all levels are addressed When all levels are addressed When conflicts are acknowledged When conflicts are acknowledged

between levels and worked throughbetween levels and worked through A process that never endsA process that never ends

Mary Gresham, Ph.D. Atlanta Financial PsychologyMary Gresham, Ph.D. Atlanta Financial Psychology

greshams model for financial health

Economy & Finance