Abstract
This chapter explores the link between behavioral finance and cognitive psychology, as well as the practical limitations of behavioral finance to the practice of financial planning. The chapter examines the needs of financial planners and how the field of financial psychology can assist. Younger financial planners can use aspects of social psychology to influence client perceptions. Implementing strategies to optimize the office environment, such as rearranging the furniture to create a living room feel and turning off televisions playing financial news may reduce client stress. Awareness of the influence of various personality traits on financial beliefs and behaviors can help financial planners tailor their approach to meet the needs of individual clients. It is also important to consider differences in personality predispositions within the client‐planner relationship to avoid misunderstandings. Some of the basic tenets of Humanistic Psychology are that humans are inherently good, have a natural propensity toward growth in even the most adverse situations, and can thrive when a therapist provides an environment of authenticity, empathic understanding, and unconditional positive regard.