Needs-based psychological theories can assist leaders in designing influence strategies that may be motivational to others. This same needs-based approach can also assist financial advisors as they lead their clients to discover the true motivation behind financial expenditures. This study uses a popular motivational theory, Maslow’s hierarchy, to match consumer expenditures to the needs they meet. With this data, a new methodology for analyzing spending habits is discussed. Advisors have the opportunity to use this analysis as an educational tool to motivate clients to develop and/or maintain spending and savings habits that, from a needs-based perspective, are most important to them.
Author: C. Michael Smith, PhD, CFP, is a lecturer at Roanoke College where he teaches courses in investments, finance, risk management, and leadership. He is the author of the textbook, Investments: Fundamental Theory and Practice.
Author: Johanna Sweet, EdD, SPHR, SHRM-SCP, is an assistant professor of business administration at Roanoke College. She manages the human resource management concentration, and has published multiple manuscripts on psychological capital. Dr. Sweet has over 10 years of experience in human resource leadership.
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