Values, Attitudes, Emotions and Disorders Related to Money

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Identify the levels of Maslow’s Hierarchy of Needs.†
    • Physiological
    • Safety
    • Belongingness/Social/Love
    • Esteem
    • Cognitive
    • Aesthetic
    • Self-actualization
    • Transcendence
  • Explain how Maslow’s Hierarchy of Needs may impact financial decisions.
  • Identify beliefs an individual may hold about money,†† such as:
    • Money is good/bad
    • Money represents achievement/lack of achievement
    • Money is power
    • Money is important/unimportant
    • Money provides security
    • Money should be retained/conserved
    • Money will give meaning or bring happiness
    • Money is not to be spoken about
    • There will never be enough money
    • There will always be enough money
    • I do not deserve money
    • I deserve to spend money
  • Identify factors that may impact an individual’s association with money, such as:
    • Previous experience
    • Observations of friends/family/parents’ use of money
  • Identify associations with money that may impact an individual’s decision-making and behaviour.
    • Emotional association with money
    • Financial literacy
    • Level of knowledge about financial matters
    • Experience in using money
  • Define problematic practices associated with money, such as:
    • Workaholism
    • Underspending
    • Compulsive buying
    • Pathological gambling
    • Compulsive hoarding
    • Inability to budget
    • Excessive need for instant gratification
    • Financial paralysis
    • Underspending relative to means
    • Overspending relative to means
    • Financial enabling
    • Financial dependency
    • Overexposing children to money problems
    • Hiding financial matters from spouse/partner
    • Poor investment decisions
    • Excessive risk taking
    • Excessive risk aversion
  • Define a vow of poverty.
  • Define sudden wealth syndrome.
  • Define grief.[1]
  • Identify events when an individual may experience grief, such as:
    • Death of an important person
    • Death of a pet
    • Loss of relationship
    • Loss of job
    • Diagnosis of illness or health problem
    • Experiencing catastrophic loss of property
  • Identify that grief is a process with various stages that may include:
    • Denial
    • Anger
    • Bargaining
    • Depression
    • Acceptance
  • Identify that everyone’s experience with the process of grief may be different.
  • Explain how grief may impact financial decision-making, such as:
    • Excessive or debilitating anxiety
    • Depression
    • Significant personal relationship dysfunction
    • Recall of past painful or traumatic experiences around money
    • Addictive or compulsive behaviours
    • Inability to change destructive financial behaviours or follow through on financial plans
  • Identify areas where mental energy may be spent, such as:
    • Managing pain and stress
    • Directing attention
    • Making decisions
    • Resisting temptations
    • Controlling emotional displays
    • Forming new habits
    • Completing everyday chores
    • Learning new things
  • Define mental depletion
  • Identify that when greater amounts of mental energy are spent on one area to the detriment of other areas, mental depletion may occur.
  • Identify potential signs of mental depletion, such as:
    • Amplified emotional reactions
    • Physical fatigue
    • Mental fatigue
          • Difficulty making decisions
          • Confusion
          • Hyper focusing
          • Rigidity in thinking
          • Cessation of good habits / increase in bad habits
        • Identify potential risks of mental depletion, such as:
          • Diminished learning capacity
          • Flawed decision-making
          • Vulnerability to temptation
          • Non-adherence to change / recommendations
        • Identify potential aids to reducing mental depletion, such as:
          • Sleep
          • Nutrition
          • Exercise
          • Mental relaxation techniques
        • Identify effective strategies when engaging with an individual who may be suffering from mental depletion, such as:
          • Affirm the individual / validate their emotions
          • Clarify circumstances
          • Simplify decision-making
          • Prioritize decisions
        • Identify actions a financial planner may suggest when an individual may be suffering from mental depletion, such as:
          • Postpone non-essential decision-making
          • Postpone providing additional information to client
          • Postpone educating client
          • Reschedule a meeting

        † Maslow, A. H. (1970). Religions, values, and peak experiences. New York: Penguin. (Original work published 1964)

        †† Klontz, B., Britt, S. L., Mentzer, J., & Klontz, T. (2011). Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory. Journal of Financial Therapy, 2 (1) 1. http://dx.doi.org/10.4148/jft.v2i1.451  

        REFERENCES

        1 http://www.cmha.ca/mental_health/grieving/

        KNOWLEDGE EXPECTED OF: CFP® Professionals

        Highest Knowledge Level: Understanding

        Knowledge Levels and Associated Verbs


        Awareness
        The state of being aware that something exists / to have familiarity with a particular activity or subject
        Understanding
        To comprehend the general relationship of particulars / to have an expertise with how something works
        Application
        Ability to put information to use / to use knowledge for relevant, practical purposes
        Evaluation
        To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
        Define
        To state exactly the meaning of
        Identify
        To be aware of / to recognize and correctly name / to locate an appropriate resource
        Explain
        To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
        Determine
        To ascertain / to come to a decision, such as by investigation or reasoning
        Compare
        To note the similarities and differences between two or more things
        Estimate
        To determine an approximate value for
        Calculate
        To find the value using mathematics
        Convert
        To change from one form or purpose to another
        Evaluate
        To reach a conclusion or make a through careful study
        Interpret
        To give the meaning of / to construe or understand / to translate orally

        Hold cursor over or click on each term to read its definition.

        • Identify the levels of Maslow’s Hierarchy of Needs.†
          • Physiological
          • Safety
          • Belongingness/Social/Love
          • Esteem
          • Cognitive
          • Aesthetic
          • Self-actualization
          • Transcendence
        • Explain how Maslow’s Hierarchy of Needs may impact financial decisions.
        • Identify beliefs an individual may hold about money,†† such as:
          • Money is good/bad
          • Money represents achievement/lack of achievement
          • Money is power
          • Money is important/unimportant
          • Money provides security
          • Money should be retained/conserved
          • Money will give meaning or bring happiness
          • Money is not to be spoken about
          • There will never be enough money
          • There will always be enough money
          • I do not deserve money
          • I deserve to spend money
        • Identify factors that may impact an individual’s association with money, such as:
          • Previous experience
          • Observations of friends/family/parents’ use of money
        • Identify associations with money that may impact an individual’s decision-making and behaviour.
          • Emotional association with money
          • Financial literacy
          • Level of knowledge about financial matters
          • Experience in using money
        • Define problematic practices associated with money, such as:
          • Workaholism
          • Underspending
          • Compulsive buying
          • Pathological gambling
          • Compulsive hoarding
          • Inability to budget
          • Excessive need for instant gratification
          • Financial paralysis
          • Underspending relative to means
          • Overspending relative to means
          • Financial enabling
          • Financial dependency
          • Overexposing children to money problems
          • Hiding financial matters from spouse/partner
          • Poor investment decisions
          • Excessive risk taking
          • Excessive risk aversion
        • Define a vow of poverty.
        • Define sudden wealth syndrome.
        • Define grief.[1]
        • Identify events when an individual may experience grief, such as:
          • Death of an important person
          • Death of a pet
          • Loss of relationship
          • Loss of job
          • Diagnosis of illness or health problem
          • Experiencing catastrophic loss of property
        • Identify that grief is a process with various stages that may include:
          • Denial
          • Anger
          • Bargaining
          • Depression
          • Acceptance
        • Identify that everyone’s experience with the process of grief may be different.
        • Explain how grief may impact financial decision-making, such as:
          • Excessive or debilitating anxiety
          • Depression
          • Significant personal relationship dysfunction
          • Recall of past painful or traumatic experiences around money
          • Addictive or compulsive behaviours
          • Inability to change destructive financial behaviours or follow through on financial plans
        • Identify areas where mental energy may be spent, such as:
          • Managing pain and stress
          • Directing attention
          • Making decisions
          • Resisting temptations
          • Controlling emotional displays
          • Forming new habits
          • Completing everyday chores
          • Learning new things
        • Define mental depletion
        • Identify that when greater amounts of mental energy are spent on one area to the detriment of other areas, mental depletion may occur.
        • Identify potential signs of mental depletion, such as:
          • Amplified emotional reactions
          • Physical fatigue
          • Mental fatigue
                • Difficulty making decisions
                • Confusion
                • Hyper focusing
                • Rigidity in thinking
                • Cessation of good habits / increase in bad habits
              • Identify potential risks of mental depletion, such as:
                • Diminished learning capacity
                • Flawed decision-making
                • Vulnerability to temptation
                • Non-adherence to change / recommendations
              • Identify potential aids to reducing mental depletion, such as:
                • Sleep
                • Nutrition
                • Exercise
                • Mental relaxation techniques
              • Identify effective strategies when engaging with an individual who may be suffering from mental depletion, such as:
                • Affirm the individual / validate their emotions
                • Clarify circumstances
                • Simplify decision-making
                • Prioritize decisions
              • Identify actions a financial planner may suggest when an individual may be suffering from mental depletion, such as:
                • Postpone non-essential decision-making
                • Postpone providing additional information to client
                • Postpone educating client
                • Reschedule a meeting

              † Maslow, A. H. (1970). Religions, values, and peak experiences. New York: Penguin. (Original work published 1964)

              †† Klontz, B., Britt, S. L., Mentzer, J., & Klontz, T. (2011). Money Beliefs and Financial Behaviors: Development of the Klontz Money Script Inventory. Journal of Financial Therapy, 2 (1) 1. http://dx.doi.org/10.4148/jft.v2i1.451  

              REFERENCES

              1 http://www.cmha.ca/mental_health/grieving/
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