According to Self-determination Theory, when someone works towards a self-endorsed goal, motivated by values, interest, or enjoyment, their efforts are more likely to enhance their well-being.¹ This theory supports the idea that it’s not motivating to feel like you’re living someone else’s plan for your life.

This is why helping your clients identify the goals that are meaningful to them is so important to the financial planning process. Fortunately, a planning process that focuses on meaningful personal and financial goals is also a top priority for your clients. Our research has found that helping clients identify meaningful goals is the finpsych practice with the greatest positive impact on client satisfaction.²

So, how can you help your clients identify meaningful short- and long-term goals that will motivate them to take action?

Start by Identifying Values

Additional research by Dr. Moira Somers, a financial psychologist, suggests that advisors can help clients identify their core values and link them to their financial goals to increase motivation and commitment.³

Generic goals like “save more” or “retire comfortably” lack the emotional weight needed to inspire action. By uncovering what truly matters to your clients, you can transform abstract numbers into emotionally charged aspirations.

To effectively uncover your clients’ values:

• Create Safe Spaces: Building trust is essential to a successful client relationship. Before delving into your clients’ values, they need to feel comfortable sharing their authentic thoughts and feelings about money with you. Encourage open dialogue by actively listening, using non-verbal cues to show engagement, and validating their emotions. Demonstrating patience and allowing them to share at their own pace can further enhance their sense of security.
• Use Value Assessments: A variety of values exercises are available to help clients explore what matters most to them, ranging from simple question lists to card decks and interactive digital tools. Different approaches may resonate more with certain clients, so it’s beneficial to have a diverse set of value exploration tools in your toolkit. Tailoring the exercise to each client’s preferences and comfort level can enhance the effectiveness of these assessments and lead to more meaningful insights.
• Ask Reflective Questions: Asking the right questions can spark productive conversations and guide clients toward a deeper understanding of their priorities and what they find most meaningful. Thoughtful, open-ended questions encourage reflection and can uncover insights that may not surface through standard discussions, creating opportunities for more impactful planning and decision-making.

Navigating the values conversation may require time and patience when your relationship with a client is still developing. However, engaging in this discussion early on establishes the foundation for a financial plan that aligns with their core priorities—one they will be more motivated to act on and fully commit to.

Move from Values to Goals

When a goal is tied to personal values clients are more likely to stay committed, even when challenges arise. As you transition from identifying values to setting goals, you can facilitate the process by first exploring the “why” behind your clients’ goals.

When a client expresses a financial goal, dig into its underlying causes. A client’s initial goal may be to “save more,” but through exploration, you might discover their real motivation is ensuring their children have educational opportunities they never had. By discovering this deeper motivation, you can connect what was originally a generic goal to your client’s personal values.

Research demonstrates that clients with clear, specific goals are more likely to engage with their financial plan and follow through on planning activities. A 2022 study by Moss, Grable, and Heo found that individuals with specific, meaningful goals were significantly more likely to engage in positive financial planning behaviors.⁴

To transform your clients’ aspirational goals into achievable outcomes:

• Guide Self-discovery: Clients often already know what they need to do–they just need help articulating and organizing their thoughts into actionable steps.
• Create Tangible Goals: Work with your clients to transform their aspirations into specific, measurable objectives. Breaking larger goals into manageable milestones will help your clients measure their progress and gain a sense of achievement along the way.
• Develop the Action Plan: Assist your client in developing a concrete roadmap bringing them to their ultimate vision. Use the insights gained from your discussions and expertise to craft a plan that is practical, actionable, and demonstrates your understanding of their unique situation and values.

Clients’ lives and priorities evolve, so regularly revisit their aspirations to ensure alignment with their current circumstances. This will not only keep their goals relevant but foster trust and build a lasting relationship between you.

Set Your Clients Up for Success

As financial planners, you have the unique opportunity to guide clients in defining goals that resonate deeply with their values, dreams, and priorities. By connecting financial goals to clients’ deeply held values, you can help foster a sense of purpose and intrinsic motivation, leading to better adherence to the financial plan.

Sources:

1. Deci, E. L., & Ryan, R. M. (2000). The “what” and “why” of goal pursuits: Human needs and the self-determination of behavior. Psychological Inquiry, 11(4), 227-268.
2. eMoney Beyond the Plan Research, July 2023, n=504 advisors, n=1,003 end-client investors
3. Somers, M. (2018). Advice that sticks: How to give financial advice that people will follow. Practical Inspiration Publishing.
4. Moss, S. A., Grable, J. E., & Heo, W. (2022). Financial well-being, future time perspective, and goal specificity: Implications for retirement planning behavior. Journal of Financial Planning, 35(4), 48-59.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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