When assisting a client in their financial journey, which approach should be taken?

Supporting a client in their financial journey involves empowering them to take control of their financial future. By facilitating their plan to achieve their goals, you are helping them create a tailored strategy that aligns with their personal values, needs, and aspirations. This client-centric approach fosters a sense of ownership and accountability, enabling the client to actively engage in the process.

Facilitating means actively listening to the client’s concerns, asking thought-provoking questions, and guiding them through various options without dictating what they should do. This approach is key in building trust and ensuring that the client feels understood and supported throughout their financial decision-making process. It encourages collaboration, which often leads to better outcomes as clients are more likely to follow through on a plan they have had a hand in shaping.

Judging, imposing personal opinions, or offering unrequested advice can create barriers in communication, leading to defensiveness or disengagement. Such tactics can undermine the client's confidence, reduce their sense of agency, and could result in resentment or frustration, ultimately hindering their financial progress. The objective of a personal financial counselor is to empower clients, helping them develop their skills and confidence to make informed financial decisions, rather than steering them according to the counselor’s own views.