What is Money Languages?
Money Languages is a scientifically validated psychometric assessment test and proprietary set of client reports. Our assessments and reports enable financial advisors to understand how individual clients feel and behave regarding money.
Why is Money Languages an essential tool for advisors?
Approximately 70% of people don’t follow the professional recommendations their financial advisors propose (this is true in other industries such as medicine as well). Why is the good advice that financial planners are offering only appealing to a small percentage of their clients? Clearly something is getting lost in translation. Money Languages’ research has determined that–regardless of income, age, gender or ethnicity–people’s feelings and behavior regarding money can be divided into five distinct types (languages). Generally speaking, people only speak/understand their own language. Linguistic sociologists study how to deliver bad news in a manner that is likely to be most readily accepted and understood. But few people have studied the successful delivery of good news or forward-looking plans, especially not in the field of finance. Until now.
How does Money Languages work?
Just like there’s more than one way to live the good life, there’s more than one way to write a successful money story. Money Languages helps financial planners identify the strengths of a wider spectrum of the population, recognizing how to best harness the tendencies and rhythms of different personalities.
Money Languages doesn’t change the financial plans you create, our assessment tool identifies the money language your client speaks. It then gives you a brief proprietary assessment report on the best way to deliver your plans in your client’s money language. This increases the likelihood that your clients will follow through and put your plans into action. Our proprietary reports reveal:
- Areas of strength and opportunities for growth in terms of the client’s feelings/behavior surrounding money
- Conversation prompts in terms of what to say and what NOT to say to clients depending on their money language
- Strategies moving forward for building a lasting financial relationship with clients who speak different languages
What is the research behind Money Languages?
We created a large-scale nationally representative sample of more than 1500 people ages 18 and older, with a special focus on married individuals from the same household. Using a combination of factor analysis using principal axis factoring with promax rotation, we identified latent constructs in the data followed by cluster analysis to identify meaningful and homogenous subgroups of respondents. Money Languages drew from this research and the findings of sociology, psychology and statistics to identify five financial languages (i.e.: types): the planner, the worrier, the believer, the seeker and the tracker.
Who are the people behind Money Languages?
Money Languages was created by interdisciplinary academic researchers and practitioners of consumer science, financial security and marketing, Our team includes Christine Whelan, PhD, Dee Warmath, PhD, Anthony Cernera, PhD and Bill McGarvey.
How can I take the assessment test & what does it cost?
We are currently piloting Money Languages with large institutions and individual advisors. If you would like to take our assessment test and discuss using Money Languages in your financial planning practice, we invite you to contact us here.