Content Level: Foundational
NAPFA Subject Area: A-Financial Planning Process

Many Americans continue to struggle with financial wellness and literacy, causing increased financial stress and wealth disparity that is perpetuated from one generation to the next. Historical approaches to addressing this issue have focused on education, but logic and reason alone do not motivate people to change the financial behaviors necessary to improving their overall financial wellbeing. Instead, practitioners need to understand the emotional, cultural and psychological barriers that are preventing sustainable improvements, especially among populations most at risk. Only then will we be able to close the wealth gap, improve workforce productivity and improve short and long-term financial outcomes (e.g., retirement preparedness, buying a home).

1. Have a broadly accepted definition of financial wellness and wellbeing
2. Understand the four categories of financial resilience
3. Be able to recognize in which of the four categories a person may fall
4. Understand and use various financial coaching methods to generate the greatest likelihood of positive change in financial behavior

Greg Ward