What Canadian financial professionals need to know about money and mental health

Generational trauma with money

Science has proven that there is intergenerational trauma. Basically, when our parents or grandparents experienced stressful and/or stressful events, this trauma can be reflected in us, both in our genes and in our mental well-being.

In fact, financial problems can often be caused by generational trauma. If your parents or grandparents lived through the Great Depression or lived below the poverty line for most of their lives, their views and concerns about money will influence what happens now. And it can be helpful for those in finance to see that someone’s emotional response may not be relevant to the current discussion, but may be due to unresolved or unprocessed financial trauma from previous generations.

What you which I did: It may be difficult to interpret one’s responses as intergenerational trauma. It may take time for therapists to acquire this knowledge. So, the best thing you can do here is to understand that some people have deep challenges with money and finances, and try not to take anything for granted. Focus on building a trusting and open relationship with your client, and hopefully your client will respond in kind.

External feelings that seem negative

What happens to the body when we are emotionally stressed varies from person to person. Therefore, it is important to note that this reaction is not voluntary and difficult for a person to control. Most of us have heard of fight, flight or freeze, and the psychological community is now looking to prey as another response to mental stress. In general, the fawn can lead to pleasing people. If a phrase or moment lends to someone feeling uncomfortable in a meeting, this discomfort is felt unconsciously, and the body can react, leaving the client possibly stressed and out of control emotionally.

For example, fighting can mean that someone becomes argumentative or withdrawn. Flight means that they try to remove themselves from the situation, such as leaving the room or hanging up the phone. And an egg reaction can mean that someone stops talking and goes inside, quiet. Fawn, also known as a people pleaser, may indicate that a client is very agreeable even when they do not fully understand what advice is being given.

When we are in a state of emotional disturbance, defense mechanisms kick in and we begin to operate from a defensive position, instead of an open, communicative one. Again, this is probably not directly related to the current discussion, but it comes from the unconscious here and now.

What you which I did: If you sense a change in mood happening with the client, try to take a deep breath, and ask if the client needs anything, such as a short break, a glass of water or even a review of the information you just shared. Their emotional brain may take over and they will need a moment or two to get back into regulation, if that is available to them. If they can’t quiet their nervous system, it might be good to suggest, gently, that they revisit the meeting another time.

What can you do to manage clients to better manage their money

What can you do when someone gets emotional while talking about their money? We do not recommend that you treat a client who comes to you for financial advice through a psychotherapeutic lens (psychotherapy is a regulated profession in Ontario, New Brunswick, Nova Scotia and PEI); However, there are ways you can help communicate with them with empathy and understanding, which may help you build lasting relationships.