Dr. Mary Gresham of Atlanta Financial Psychology describes the conceptual model of a healthy relationship with money. This model addresses the mathematical/rational, values and spiritual, emotional/symbolic/relational and process levles of a rleationship with money. All areas need to be addressed and integrated to develop a health sense of money.
1. Gresham’s Model of a
Healthy Relationship with
Money
Dr. Mary Gresham
2801 Buford Highway Suite 260
Atlanta, Ga. 30329
404-320-6510
www.atlantafinancialpsychology.com
2. What is your
definition of a
healthy relationship
with money?
3. Why define it?
Your model influences your work
beyond your awareness
Your clients will benefit by
looking at their own definitions
If you don’t, someone else will.
This works helps you connect
with your clients at a deeper level.
5. A Whole Relationship with
Money
Gives a theoretical framework for a
healthy relationship with money that
is easily understood by clients.
When asked about, defines the client
relationship.
Helps us define the strengths and
weaknesses of clients in a non-
judgmental way.
7. Rational/Mathema
tical
This type of discourse is
purely rational and
numerically based
Where many financial
professionals are most
comfortable and prefer to
connect.
8. Examples
Your portfolio decreased 4% in the
first quarter of the year. The
primary contributor was the poor
performance of the XYZ fund but
that was partly offset by the
performance of the ABC fund
9. Mathematical/Rational
Must have skills to track spending, savings,
net worth, make investment choices, plan
for retirement
For some clients, this is the last level of
development
For some clients, this is level at which they
want to connect first and/or the only level
of interest
11. Values/Spiritual
Refers to important and enduring
thoughts, beliefs, ideals and
attitudes towards money.
12. Values/Spiritual
Refers to important and enduring
thoughts, beliefs, ideals and
attitudes towards money.
Determines guidelines for
behavior
13. Values/Spiritual
Refers to important and enduring
thoughts, beliefs, ideals and
attitudes towards money.
Determines guidelines for
behavior
Often assumed but not articulated
15. Values Conversations
How much of your eligible
contribution will you be putting in
your retirement fund this year?
Are you giving to a charity this
year?
What kind of trust do you wish to
set up for your children?
18. Values conversations
Safe, non-judgmental, structured
Differences acknowledged and
integrated
Related to age, gender, culture,
behavior
19. Money and Meaning
Project done at the Ackerman Institute
in New York with financial advisers
and therapists collaborating to
identify a values framework for money
conversations
Card sort activity that is fun and
engaging
20. Examples
Personal Recreational
Spiritual Material
Economic Public Service
Philanthropy Financial
Relationships, Physical
Culture Ethical.
Work
Educational
21. Benefits of values work
Using values helps guide decisions
Identification of discrepancy between
behavior and values can be addressed
Looking at the areas of discrepancy
promotes working on the underlying
issues
22. Exercise
How did your values apply to your
most recent financial decision?
This exercise opens the door to discuss
a discrepancy between beliefs and
behavior.
25. Emotional/symbolic
conversations
Non-verbal cues are most important
indicators that the person is operating
on the emotive level:
Voice tone
Breathing
Body language
Facial expression
26. Emotional/Symbolic
Where many financial professionals
become uncomfortable
Lack of framework makes it harder to
deal with emotions about money
Where women can be most engaged in
the issues about money
Men are socialized to avoid this realm
27. Connecting at the
emotional/symbolic level
Where you can differentiate
yourself and your practice
Develop skills and a model for
this area
Look at your own money issues or
develop a relationship with a
counseling professional
28. Emotions signal core concerns
Appreciation
Affiliation
Autonomy
Status
Role
30. Process
Learning how to step out of an
interaction and comment on what is
happening
A learned skill
Reduces conflict and gives a
framework for the interaction
31. Process commentary
There seems to be a lot of tension in
the room when we talk about
implementing a spending plan.
Although you say you are happy with
this plan, I notice that you are not
following it. Can you help me
understand that?
32. Process values cards
Inclusive: all included
Exclusive: some excluded based on
age, gender, bloodline
Collaborative
Egalitarian: equality is the defining
principle
Transparent: open to all
33. Process Values Cards
Transparent: open to all
Hierarchical: one individual
dominates, autocratic
Empowerment: other members
authorized for decisions
Dialogue: encourage discussion and
hear all points of view
Reflective: research and gather info,
contemplate and explore
34. Types of process
What are other process descriptions
you have noted in working with
clients?
35. All levels are important
Example: certain financial decisions
may work well at the math level but
not at the values or emotional level
Example: certain decisions may work
well at the process level but not at the
values level
36. Financial health
When all levels are addressed
When conflicts are acknowledged
between levels and worked through
A process that never ends
Mary Gresham, Ph.D. Atlanta Financial Psychology