Finance - It's About More than Money

Finance types like me might view money as a practical, unemotional topic. It's all about what comes and what goes out in dollars and cents, right? My professional and life experiences have taught me that it is often a lot more than that.

I attended a presentation this morning at my local chapter of the Financial Planning Association. The speaker, a counselor and expert on the emotional sides of money confirmed the role emotions often play. She pointed out that Adam Smith, the famous economist who wrote "The Wealth of Nations" in 1776, first wrote about how our mental fallacies can influence economics in "The Theory of Moral Sentiments" in 1759.

Money is a representation of our efforts, our blessings, and our good fortune. It can be used to provide for the necessities of life or to acquire the luxuries of the world. What we do with that money is largely determined by our values, morals, habits and desire for instant versus long-term gratification. How a husband and wife feel about money is often illustrated when they make a significant financial decision together. These feelings are often rooted in much more than the item at hand. Children often model the behavior they see in their parents.

As an individual, I try to consider what is behind my financial decisions and consider all parties involved and the greater good, not just my own biases. As a financial professional I use my education and experience and the non-emotional role I play in significant financial decisions to help my clients. I care greatly about their financial successes, but I separate myself from the emotional decisions that may be holding them back from even greater practical success in their lives.