How to help your clients overcome financial fears

Many clients fear finances, and those worries can hold them back. By helping clients acknowledge and address their fears, you can support confident decisions and improve their long-term financial future.

Ask your clients their biggest fears and many of their answers may revolve around finances. These fears are normal, everyone has them. Yet, all too often, fear stops people from moving forward. Sometimes it's less scary to ignore that potential problem than face it head-on and figure out a way to fix it. However, part of your job can be to help your clients overcome these financial worries. By helping them recognize their fears, you can play a key role in improving their financial future.

Common financial fears

Your clients probably have felt at least one of these fears in their life. Here's what you can do to help them.

Debt — A huge source of financial stress is debt. Student loan debt and credit card debt often lead the pack. Your clients might not even know how much debt they have because they are too afraid to look at the numbers. You can work through this together. Consider having your clients create a list of the debts they have and the interest rates on them. Then create a strategy to pay these debts off one by one.
Credit score — Your clients realize their credit score is a very important number. However, many of them might not know exactly what it is, or they acknowledge that it's poor, but aren't taking steps to improve it. To help, advise on how to get a free copy of their credit report. You can devote time to going over the report and highlighting areas where they can work on improving their score.
Retirement — A lot of people worry they won't have enough money in retirement. This fear is so overwhelming, some give up on any sort of savings at all. Or, on the flip side, some have very unrealistic goals for their retirement lifestyle compared to their savings.

One way to approach this is to start small and focus on taking action. Consider breaking down the small repeatable steps your clients can do now, such as setting up an automatic monthly transfer into a 401(k), and show how they can set smart and realistic goals.

Some strategies to overcome fear

You may sometimes feel that as a financial professional you find yourself playing armchair psychologist. There are a lot of behaviors and stressors wrapped up in money, and part of your job may be to help your clients untangle them.

Most everyone, at some point in their life, feels at least one of these common fears: failure, rejection, change, uncertainty and judgment. However, there are things you can do to help your clients overcome these fears

Name the fear — Start the conversation, and really listen to what your clients say. Help guide them to name the fears that are holding them back right now. Having it out in the open is the first step toward making progress.
Educate them — Many fears are just wrapped up in the unknown. By working to teach your clients, you can give them power and help them make better decisions.
Build trust — Having your clients' trust is crucial to a strong relationship. Present yourself as a partner who is there to work alongside them and guide them to the best of your ability.

Overcoming fears can change the way your clients think and better prepare them to reach their goals. And if you're looking to manage some of your own fears about managing and growing your business, consider trying these strategies:

Reflect on your skills — Being a great financial professional is a lot more than managing money, so think about the areas where you can double down on your best skills and improve your weaknesses.
Learn — Education doesn't start and end with your clients. You also want to educate yourself on how to best grow your business and build lasting relationships.

Loading component...

Want to help your clients achieve common financial goals?

Find out how

WEB.2256024.03.26

Common financial fears

Your clients probably have felt at least one of these fears in their life. Here's what you can do to help them.

Debt — A huge source of financial stress is debt. Student loan debt and credit card debt often lead the pack. Your clients might not even know how much debt they have because they are too afraid to look at the numbers. You can work through this together. Consider having your clients create a list of the debts they have and the interest rates on them. Then create a strategy to pay these debts off one by one.

Credit score — Your clients realize their credit score is a very important number. However, many of them might not know exactly what it is, or they acknowledge that it's poor, but aren't taking steps to improve it. To help, advise on how to get a free copy of their credit report. You can devote time to going over the report and highlighting areas where they can work on improving their score.

Retirement — A lot of people worry they won't have enough money in retirement. This fear is so overwhelming, some give up on any sort of savings at all. Or, on the flip side, some have very unrealistic goals for their retirement lifestyle compared to their savings.

Some strategies to overcome fear

Name the fear — Start the conversation, and really listen to what your clients say. Help guide them to name the fears that are holding them back right now. Having it out in the open is the first step toward making progress.

Educate them — Many fears are just wrapped up in the unknown. By working to teach your clients, you can give them power and help them make better decisions.

Build trust — Having your clients' trust is crucial to a strong relationship. Present yourself as a partner who is there to work alongside them and guide them to the best of your ability.

Reflect on your skills — Being a great financial professional is a lot more than managing money, so think about the areas where you can double down on your best skills and improve your weaknesses.

Learn — Education doesn't start and end with your clients. You also want to educate yourself on how to best grow your business and build lasting relationships.