Financial Advice For the Right and Left Side of the Brain

To best help clients with stress that results from major life transitions, advisors should understand the basic structure of the brain. The right side of our brain is holistic and nonverbal while the left side of the brain tries to make sens of what is going on.

Most financial advice is directed at the left side of the brain, but appealing to that side of the brain only is not always enough because it neglects right-side functions. It is best to acknowledge your client’s need to feel understood by expressing genuine interest in your client’s concerns.

The Journal of Financial Planning sets forth an example of a stressful event – a child leaving for college. Parents are torn between whether their child should work part time during the school year.

Studies were done on whether there were differences in grades according to how much students worked while in school. One study ultimately found that there are significant benefits for students who work not more than 20 hours a week on campus. Another study indicated that working off campus for more than 20 hours a week increased the students’ psychological well-being and leadership abilities.

The best approach to this dilemma and other similar dilemmas is to address right brain emotional issues before moving into the logical left brain advice.

See Eileen Gallo, Life Transitions and the Brain, Journal of Financial Planning, 2012. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.