Mitigating Culture Shock In Personal Finance

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Authors

  • Barbara L. Stewart

Published 2003, "Mitigating Culture Shock In Personal Finance", Journal of Personal Finance, 2003- Volume 2

Abstract

  • Culture shock occurs when catastrophic events change culture in dramatic and profound ways. In the aftermath of September 11, 2001 Americans experienced culture shock. Reliable social norms and patterns of behavior were rocked by a moment of international terrorism. Individuals felt the waves of shock not only in their feelings of patriotism and social relationships, but also in their personal finances. Culture soundly impacts consumer spending, saving, and investment. As professionals committed to fostering wise choices, professional financial advisors can use their roles to mitigate the effects of culture shock. A value added plan can position the financial planning profession with an image of dealing with issues of change and its multiple impacts. Components of a value added plan include: recognizing the symptoms of culture shock, educating clients, developing strategies to mitigate impacts, creating tools to provide reassurance, formulating new services, and promoting personal and financial health and balance.