How Can We Know Our Clients’ Financial Stress?

18 Pages Posted: 18 Sep 2017

See all articles by Wookjae Heo

Wookjae Heo

South Dakota State University

Soo Cho

California State University, Dominguez Hills

Phil Lee

South Dakota State University

Date Written: September 15, 2017

Abstract

This study introduced a new, multidimensional financial stress scale and its relevance with clients’ personalities. It is a combined process of financial stressors and financial behavioral responses that includes psychological and physiological reactions. In addition, these reactions can be observed in diverse dimensions, including social relationships, and psychological and physiological responses. By understanding the complexity of financial stress, financial planners can adopt a more professional attitude with their clients. Four possible clusters of clients were demonstrated based on their level of financial stress and personality. Financial planners who are aware of these four clusters can identify their clients’ level of financial stress based on observations of their personalities. This will help planners tailor their services and approaches to clients’ individual differences, and enable them to assess the level of financial stress both directly and indirectly.

Keywords: Financial Stress, Scale, Personality of Clients

JEL Classification: G02, D12, D14

Suggested Citation

Heo, Wookjae and Cho, Soo and Lee, Phil, How Can We Know Our Clients’ Financial Stress? (September 15, 2017). 2018 Academic Research Colloquium for Financial Planning and Related Disciplines, Available at SSRN: https://ssrn.com/abstract=3037527 or http://dx.doi.org/10.2139/ssrn.3037527

Wookjae Heo (Contact Author)

South Dakota State University ( email )

2220 10th St Apt #1
Brookings, SD South Dakota 57007-0895
United States
6056885835 (Phone)

Soo Cho

California State University, Dominguez Hills

1000 E. Victoria Street, Carson, CA
Carson, CA 90747
United States

Phil Lee

South Dakota State University

2220 10th St Apt #1
Brookings, SD South Dakota 57007-0895
United States

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