The Role of Positive Framing in the Future of Financial Planning

Question	Correct Response
Suppose you have $100 in a savings account earning 2% interest a year. After five years, how much would you have? Exactly $102, Less than $102, More than $102	More than $102
Imagine that the interest rate on your savings account is 1% a year and inflation is 2% a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?	Less than today
If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?	Fall
True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.	True
True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.	False

Intervention	Example
Exercise optimism and hope	Acknowledge progress with encouraging statements: “The progress you have made is impressive and really speaks to your commitment to your values and goals”.
Savour/appreciate the present moment	Set electronics aside and engage in focused conversation with clients.
Identifying and using strengths	Reinforce strengths with specific feedback: ‘Your consistency demonstrates your focus and strong discipline, which will continue to support your success’.
Practice kindness	Suggest ways clients can integrate giving into their financial plans, for example, allocating a portion for charitable donations or supporting others, to reinforce a sense of purpose.
Note meaningful experiences	Encourage clients to document their meaningful financial achievements or experiences that brought them joy or fulfilment, like successfully paying off debt or achieving a savings milestone.
Practice meaning making	Highlight the purpose behind financial actions: ‘Increasing your retirement contributions not only strengthens your financial future but also aligns with your long-term goal of ensuring financial security, allowing you to travel and spend time with your grandchildren’.

Characteristic	N	Mean	St.Dev.	Range
Age	712	43.28	13.40	25-65
Household Income	624	$138,737	$587,829	$0−2,000,000
Financial Literacy Score (/5)	729	2.50	1.45	0–5

Assets		Frequency (%)

Less than $50,000	232	30
$50,000 to $99,999	178	23
$100,000 to $249,999	126	16
$250,000 to $499,999	72	9
$500,000 to $749,999	58	8
$750,000 to $999,999	52	7
$1,000,000 or more	50	7

Question	Mean score “worse off” framing	Mean score “better off” framing	t-value
I use money to create joy and happiness in my life.	1.99 (0.64)	2.08 (0.64)	−2.07(874)*
I frequently have conflict with family members about money.	2.75 (0.94)	2.75 (0.87)	0.02(869) n.s.
When you think about your personal or household financial situation, which of the following words describes how you feel? (% Responding ‘Yes’ to ‘Prepared’)	0.66 (0.47)	0.73 (0.45)	−2.05(859)*
If I die tomorrow, my family will be financially okay.	2.06 (0.81)	2.12 (0.82)	−0.87 (874) n.s.
If I get sick and unable to work for a long time, my family will be financially okay.	2.14 (0.82)	2.18 (0.83)	−0.67 (875) n.s.
Overall, which one of the following best describes how well you are managing financially these days?	2.65 (0.92)	2.78 (0.91)	−2.04(846)*
Mean Age	43.43 (12.89)	43.13 (13.91)	n.s.
Mean Income	$134,953 (584,886)	$142,600 (587,829)	n.s.
Mean Financial Literacy (/5)	2.49 (1.44)	2.51 (1.47)	n.s.
Mean Asset Group (/5)	2.66 (1.44)	2.53 (1.37)	n.s.

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