Perspectives in Financial Therapy

Preface
Acknowledgements
Contents
About the Editors
About the Contributors
Chapter 1: Exploring the Emerging Field of Financial Therapy
	1.1 Introduction
	1.2 The Sociology of Psychotherapy
	1.3 The Elephant on the Couch
	1.4 The Benefits of Psychotherapy
	1.5 Is Financial Therapy Psychotherapy?
	1.6 Financial Well-Being and Mental Well-Being
	1.7 Financial Capacity Building
	1.8 The Changing Role of Financial Planners
		1.8.1 The Financial Planning Body of Knowledge
	1.9 Considerations for the Practice of Financial Therapy
		1.9.1 Social Inequalities
		1.9.2 Ethical and Legal Considerations for Financial Therapy
		1.9.3 The Financial Therapy Association Standards of Practice and Codes of Ethics
	1.10 Conclusion
	References
Chapter 2: The Brain and Financial Decision-Making
	2.1 Introduction
	2.2 A Brief History of Neuroeconomics
	2.3 The Triune Brain
		2.3.1 Reward
		2.3.2 Loss Avoidance
		2.3.3 Neuroimaging
	2.4 Nature over Nurture: The Role of Genetics
		2.4.1 Genetics and Biases
	2.5 Nature over Nurture: The Role of Personality
	2.6 Decision-Making Frameworks
		2.6.1 The Dual-Self, ‘Elephant’ and ‘Rider’ Decision-Making Framework
			2.6.1.1 The Rider
			2.6.1.2 The Elephant
	2.7 An Integrated Model of Financial Decision-Making
	2.8 Conclusion
	References
Chapter 3: Practical Application of Neuroeconomics in Financial Planning
	3.1 Introduction
	3.2 Moving from Theory to Practice
	3.3 The Importance of Psychology
	3.4 Integrating Neurobiology into Financial Planning
		3.4.1 The Brain
		3.4.2 The Mind
		3.4.3 Interpersonal Relationships
	3.5 Implications of Neurofinance and Neuroeconomic Research for Practitioners
	3.6 A Cautionary Note on ‘Noise’ and Investment Advice in South Africa
	3.7 Decision Prosthetics in the New Age of Financial Planning
	3.8 Conclusion
	References
Chapter 4: Models, Resources and Tools Employed in Financial Therapy
	4.1 Introduction
		4.1.1 Money Scripts
			4.1.1.1 Money Avoidance
			4.1.1.2 Money Worship
			4.1.1.3 Money Status
			4.1.1.4 Money Vigilance
		4.1.2 Money Disorders
			4.1.2.1 Gambling Disorder
			4.1.2.2 Compulsive Buying Disorder
			4.1.2.3 Workaholism
			4.1.2.4 Financial Denial
			4.1.2.5 Hoarding Disorder
			4.1.2.6 Financial Enabling
			4.1.2.7 Financial Dependence
			4.1.2.8 Financial Enmeshment
			4.1.2.9 Financial Infidelity
	4.2 Models in Financial Therapy
		4.2.1 Cognitive Behavioural Financial Therapy (CBFT)
		4.2.2 Experiential Financial Therapy
		4.2.3 Systemic Financial Therapy
		4.2.4 Relational Financial Therapy
		4.2.5 Narrative Financial Therapy
		4.2.6 Ford Financial Empowerment Model
		4.2.7 Stopping Overshopping Model
		4.2.8 Acceptance and Commitment Financial Therapy for Women
		4.2.9 Feminist Financial Therapy
		4.2.10 Financial Therapy from a Self-Psychological Perspective
		4.2.11 Psychodynamic Financial Therapy
		4.2.12 Humanistic Approaches to Financial Therapy
		4.2.13 Stages of Change and Motivational Interviewing in Financial Therapy
		4.2.14 Solution-Focused Financial Therapy
		4.2.15 The Changes and Grief Model for Financial Guidance
	4.3 Resources and Tools That Can Be Used in Financial Therapy
		4.3.1 Personal Financial Analysis
		4.3.2 Financial Health
		4.3.3 Financial Anxiety and Financial Distress
		4.3.4 Financial Genogram
		4.3.5 Financial Statements Analysis
		4.3.6 Budgeting
		4.3.7 The Economic Model of Mortality Salience in Personal Financial Decisions
		4.3.8 The Changes and Grief Model for Financial Guidance
		4.3.9 Resources for Money Scripts and Money Disorders
	4.4 Conclusion
	References
Chapter 5: Decolonising Assessments in Financial Therapy: The Covid-19 Pandemic and African Context
	5.1 Introduction
	5.2 Methodology
		5.2.1 Flowchart for the Process of Selecting Relevant Papers
	5.3 Financial Therapy Assessments
	5.4 Assessment Methods and Procedures in Financial Therapy
	5.5 Measuring the Strength and Effectiveness of Financial Therapy Assessment Tools
	5.6 Financial Therapy Assessment Tools
	5.7 The ‘Africanised’ Financial Therapy Assessment
	5.8 The Suggested Framework for Africanised Financial Therapy Assessment
	5.9 Conclusion
	Appendices
	References
Chapter 6: Online Therapy: Challenges, Benefits and Implications for Online Financial Therapy
	6.1 Introduction
	6.2 Online Therapy
	6.3 The Different Categories of Online Therapy
		6.3.1 Information Dissemination
		6.3.2 Peer-Delivered Therapeutic Support/Advice
		6.3.3 Professionally Delivered Treatment
	6.4 Some Common Avenues for Online Therapy
		6.4.1 Self-Help Programmes Through Apps
		6.4.2 Teletherapy Through Video Chats
		6.4.3 Text Therapy
	6.5 Research on Online Therapy
	6.6 A Shift Towards More Egalitarian Power Dynamics
		6.6.1 Factors that Influence the Egalitarian Power Dynamics
			6.6.1.1 The Place Where Therapy Occurs
			6.6.1.2 The Virtual Space in Which the Therapy Occurs
			6.6.1.3 The Client’s Sense of Control
			6.6.1.4 The Option for a ‘Hybrid’ Model of In-Person and Online Therapy
	6.7 The Therapeutic Relationship in Online Therapy
	6.8 Online Therapeutic Presence
	6.9 Online Financial Therapy
		6.9.1 Choosing a Platform for Online Financial Therapy
		6.9.2 Financial Therapy Services that Can Be Done Online
			6.9.2.1 Personal Financial Analysis
			6.9.2.2 Financial Health Analysis
			6.9.2.3 Services Relating to Financial Anxiety and Financial Distress
			6.9.2.4 Budgeting
			6.9.2.5 Services Relating to Money Scripts and Money Disorders
				Financial Genogram
				Klontz Money Script Inventory and the Klontz Money Script Inventory-Revised
				Klontz Money Behaviour Inventory
	6.10 Ethical and Legal Considerations in Online Financial Therapy
	6.11 Guidelines for the Use of Online Financial Therapy
		6.11.1 Ensure Competence with the Technology and Its Impact
		6.11.2 Professional Duties
		6.11.3 Obtain and Document Informed Consent
		6.11.4 Quality, Security and Safety
		6.11.5 Disposal of Information
		6.11.6 Professional Boundaries
		6.11.7 Financial Arrangements
		6.11.8 Psychological Assessment
		6.11.9 Crisis Management
		6.11.10 Know Your Clients
	6.12 Conclusion
	Appendix: Online Therapy Consent Form Template
	References
Chapter 7: Understanding the Different Generations as Part of Financial Therapy
	7.1 Introduction
	7.2 The Importance of Understanding the Different Generations
	7.3 Financial Socialisation
	7.4 How the Different Generations Were Shaped
		7.4.1 Traditionalists
		7.4.2 The Baby Boom Generation
		7.4.3 Generation X
		7.4.4 Millennials
		7.4.5 Generation Z
	7.5 The Different Generations and Money
		7.5.1 The Traditionalists
		7.5.2 The Baby Boom Generation
		7.5.3 Generation X
		7.5.4 Millennials
		7.5.5 Generation Z
	7.6 Financial Gerontology
	References
Chapter 8: Couples and Financial Therapy
	8.1 Introduction
	8.2 The Changing Role of the Financial Advisor
		8.2.1 How Things Have Changed
		8.2.2 Two Distinct Areas of Expertise
		8.2.3 The Role of Trust
	8.3 Definitions of Terms
		8.3.1 Behavioural Finance
		8.3.2 Interior Finance
		8.3.3 Financial Coaching
		8.3.4 Financial Therapy
	8.4 Couples and Their Finances
	8.5 Relationship Quality
		8.5.1 Relationship Satisfaction
		8.5.2 Relationship Conflict
		8.5.3 Relationship Stability
	8.6 The Different Areas of Conflict in Relationships
		8.6.1 Economic Strain/Pressure
			8.6.1.1 Low Income
			8.6.1.2 High Debt
			8.6.1.3 Children in the Household
		8.6.2 Perceived Power/Control
			8.6.2.1 Respect
			8.6.2.2 Gender Matters
		8.6.3 Behavioural Differences
	8.7 Financial Advisors or Financial Therapists?
	References
Chapter 9: Planning for and Surviving Divorce: Can the Incorporation of Financial Therapy Be a Game-Changer?
	9.1 Introduction
	9.2 Employ a Multi-disciplinary Team and Allow Them to Collaborate
	9.3 Spousal Maintenance
	9.4 Defaulting on Maintenance
	9.5 Parenting Coordination
	9.6 Financial Therapy and Divorce Planning
	9.7 Conclusion
	References
Chapter 10: Rebuilding a Stable Emotional and Financial Foundation After the Divorce
	10.1 Introduction
	10.2 Balancing a Post-divorce Budget
	10.3 Tools for Successful Retirement Planning After a Divorce
	10.4 Gain Control Over Debt and Rebuild a Savings and Investment Portfolio
		10.4.1 Getting Out of Debt
		10.4.2 Savings and Investment Portfolio
	10.5 Personal Financial Goals and Parenthood
	10.6 Financial Therapy and Post-divorce Recovery
	10.7 Conclusion
	References
Chapter 11: Therapeutic Jurisprudence and Estate Planning
	11.1 Introduction
	11.2 The Psychological Impact of Law
	11.3 The Therapeutic Jurisprudence and Estate Planning
		11.3.1 Antitherapeutic Consequences of Estate Planning
			11.3.1.1 Death Anxiety
			11.3.1.2 Estate Disputes and Familial Conflict
			11.3.1.3 Fear of Probate
	11.4 Therapeutic Consequences of Estate Planning
		11.4.1 Freedom of Testation
		11.4.2 The Estate Planning Professional
		11.4.3 The Will-Execution Ceremony
			11.4.3.1 Testamentary Self-Expression
	11.5 Testation, Succession and Estate Planning in South Africa
	11.6 The Estate Planning Process
		11.6.1 Determining the Estate Planning Situation
			11.6.1.1 Factual Personal Circumstances
			11.6.1.2 Psychological Circumstances
			11.6.1.3 Social Circumstances
			11.6.1.4 Legal Circumstances
			11.6.1.5 Economic and Financial Circumstances
		11.6.2 Setting the Goals and Planning Objectives
		11.6.3 Implementation of the Plan
	11.7 Therapeutic Jurisprudence, Estate Planning and Financial Therapy
	11.8 Conclusion
	References
Chapter 12: The Limitations on Freedom of Testation
	12.1 Introduction
	12.2 Freedom of Testation
	12.3 Limitations of the Freedom of Testation
		12.3.1 The Pension Funds Act 24 of 1956
		12.3.2 The Minerals Act 50 of 1991
		12.3.3 The Immovable Property (Removal or Modifications of Restrictions) Act 94 of 1965
		12.3.4 The Maintenance of Surviving Spouses Act 27 of 1990
	12.4 Constitutional Limitation of the Freedom of Testation
	12.5 Case Law Limitations of the Freedom of Testation
		12.5.1 Minister of Education v Syfrets Trust Ltd. 2006 (4) SA 205 (C)
		12.5.2 Ex Parte BOE Trust Ltd. 2009 (6) SA 470 (WCC)
		12.5.3 King v De Jager [2021] ZACC 4
	12.6 Adding Fire to the Fear-Customary Law Rule of Male Primogeniture
	12.7 Solutions to the Wording of the Will to Prevent Invalidity
	12.8 Conclusion
	References
Chapter 13: Allaying Estate Planning Fears Through Trusts
	13.1 Introduction
	13.2 Trust as Legal Institution in South Africa
	13.3 The Inter Vivos Ownership Family Trust Features
		13.3.1 The Founder
		13.3.2 The Trustees
		13.3.3 The Beneficiaries
		13.3.4 Discretionary or Vesting Trust
		13.3.5 The Legal Nature of the Inter Vivos Trust
	13.4 Cautions for Creating an Inter Vivos Ownership Trust
		13.4.1 Issues with the Amendment of a Trust: Before Death of the Founder
		13.4.2 Issues with the Amendment of the Trust: After the Death of the Founder
		13.4.3 The Issue of an ‘Alter Ego’ Trust and a ‘Sham’ Trust
		13.4.4 Issue of an Inter Vivos Trusts Against Public Policy
	13.5 Uses of Testamentary Trusts
	13.6 Conclusion
	References
Chapter 14: Financial Therapy: A Critical Appraisal
	14.1 Introduction
	14.2 What Exactly Is Financial Therapy?
	14.3 Evolution of Financial Planning Service Offering
	14.4 The Financial Therapy Association (FTA)
	14.5 South Africa’s Health Professions Act
	14.6 The Need for Mental Health Professionals to be Conversant in Personal Finance
	14.7 Need for Financial Planners to Understand Behaviour
	14.8 Money Disorders
		14.8.1 Are Most Money Disorders Really Novel Conditions?
		14.8.2 Appropriate Use of a Label Like ‘Disorder’?
	14.9 Does Financial Therapy Merit the Status of a Distinct Discipline?
	14.10 Conclusion
	References
Index