Understanding Financial Personality

Understanding the components of Financial Personality and how to apply it when advising clients.

Applies to:  Financial DNA subscribers, Financial Planners, Financial professionals

Common Questions:  

What is Financial Personality? What are its components, and how does it apply to financial planning?

Video Walkthrough: 

Note: This video was created with a prior version of the DNA system. Reports and screens may be different in the current system. If you have questions about the reports or screens you see in the video, please contact support.


Financial Personality consists of two integrated levels:

Level 1: This is the natural-born DNA behavioral style that remains stable over time and influences how individuals consistently respond to different events. It is measured by the DNA Natural Behavior Discovery.

Level 2: This represents an individual's current learned behavioral style, which is consistently shaped by their environment, life experiences, values, and education.

Applying this knowledge when working with clients involves understanding the combined influence of these components on their decision-making. By recognizing their natural and learned behaviors, advisors can identify cognitive biases likely to affect their financial decisions. This understanding allows for sound guidance and awareness to help clients make optimal decisions and achieve better outcomes.

If a client feels like something in the natural behavior report doesn’t fully describe them, ask about learned behaviors they may have developed.

Financial DNA Makeup: 95% Nature and 5% Nurture

Natural behavior is determined by around age 3 when the neural pathways are formed and remain very ingrained. It is based on genetics (“raw material”) and early life experiences.

Learned Behavior – people continuously develop, although natural behavior remains at the core. Stronger learned behavior is developed from age 3-18 that can be adapted with focus. Less ingrained learned behavior from age 19 can be modified with awareness, experiences, and education.

In practical terms, knowing the client's communication style goals, decision biases, and learned behavior (KNOW), managing the relationship with the client on their terms to increase emotional connection (ENGAGE), and offering solutions tailored to the client's behavioral management needs (GROW) is a powerful way to apply this knowledge in financial planning.


Still Need Help?

Submit a ticket here