Empathy's research found that 68% of people today use AI for financial guidance and information, which means what your clients are missing isn't access to more information. It's someone who can help them make sense of it in the context of their own life.
Any tool can tell a client what the market did or whether their allocation is off. But what it can't do is trace why they keep making the same decisions against their own financial values, or what money really represents to them beneath the surface.
The advisors who make understanding their clients' financial values central to their practice are the ones who will build relationships that last.
What are financial values?
Financial values are the deeply held beliefs and priorities that shape your relationship with money.
Many clients may have internalized these beliefs during childhood through firsthand experiences with money. For example, if they were raised in a household that constantly penny-pinched, they might grow up believing money is scarce and value security more than anything else. But if they grew up in a home where both parents often took them on vacations, they may be more comfortable spending money and see it as something to enjoy.
Why are financial values important?
Financial values are important because they affect how your clients make financial decisions. Most people aren’t just acting on logic or spreadsheets. They’re acting on beliefs about money that have been shaped over the years. And when they’re able to align their financial decisions with their values, they’re much more likely to feel confident and purposeful about their money decisions.
Common financial values: examples to explore with clients
Every client is different, but there are a few common financial values that can help you quickly get a read on why your clients make the money choices they do.
Family security: Building financial safety nets, like emergency funds or buying life insurance, to financially protect loved ones.
Community support: Supporting charitable causes or helping others in need.
Personal growth: Investing in courses and hobbies to build new skills and knowledge.
Freedom: Valuing the ability to be financially self-reliant and not having to depend on a paycheck.
Health and wellness: Spending money on things that support physical and mental well-being, like taking yoga classes or investing in supplements.
Legacy: Caring about what gets passed on and making sure it benefits future generations the way it’s intended.
What is values-based financial planning?
Values‑based financial planning helps your clients bring their personal beliefs and the things they care most about to the forefront of their financial journey. Let’s say your client values freedom and financial independence. Your financial planning strategy may focus more on helping them invest and structure their income in a way that allows for career breaks or part-time work, rather than locking everything into long-term retirement accounts.
In other words, it goes beyond traditional financial planning and ties decisions back to your client’s priorities, lifestyle, and long-term vision. You’ll ask questions to help them figure out what they want out of life first, and then design a financial plan that serves as a roadmap to get them there.
When you tie planning back to a client’s values, education becomes easier to understand because it’s connected to their real-life decisions. And that aligns closely with what clients say they want: Empathy's research found that the top three things clients want from their advisors are education so they can make confident decisions (26%), clear guidance on next steps (24%), and help optimizing financial outcomes (24%).
How to work with clients on their financial values
To understand your clients’ financial values, start by having a conversation that goes beyond surface-level goals like “I want to save $100,000” and gets to the why behind them. This helps you uncover what money actually means to them and how it fits into the life they’re trying to build.
Discovery conversation framework: example questions advisors can ask
Here are some open-ended questions to get your clients talking about their priorities and feelings around money:
What does a good life look like to you, both now and in the future?
What are some of your earliest memories around money?
How did your family handle spending, saving, or investing?
If money weren’t a concern, how would you spend your time?
What financial decisions have felt the most stressful or conflicting for you?
What are some money mistakes you’ve seen other people make that you want to avoid?
What’s your gut feeling when money comes up?
What intentions do you have with your money?
How do you want to be remembered?
Note that you likely won’t uncover your client’s deepest motivations by just asking one question. It usually takes a bit of digging. So be prepared to ask follow-up questions to better shape the financial plan around their beliefs and values. It can be as simple as asking, “And why is that?” “What does that mean to you?”, or “Could you tell me more?”
How values integrate into the rest of the holistic financial plan
Clients aren’t just looking for someone to invest their money and beat the benchmark. They want a holistic approach that connects their finances to the life they actually want.
So once you’ve identified your client’s values, the next step is to reflect them across the entire financial plan. For example, if your client cares about legacy, make sure they’re regularly updating their will and trust, reviewing and updating beneficiary designations on accounts, and documenting details like account access and wishes.
According to our data, though 87% of families have had some conversation about future plans, over two-thirds admit those discussions haven't produced clear decisions. And for those who already have documents in place, only 47% say those documents are complete and up to date. As a values-based financial advisor, you can help your clients bridge the gap between their present and ideal state by aligning their actions with those financial values.
Becoming a values-based financial advisor
The Great Wealth Transfer is already underway, with nearly 60% of families expecting wealth to change hands within the next decade. Values-based planning is how advisors adapt and provide value: by focusing less on just the portfolio and more on the person behind it. This leads to more meaningful conversations, more relevant plans, and client relationships that carry over to the next generation.
Frequently Asked Questions
What are examples of financial values?
Some examples of financial values include freedom, security, personal growth, and community support, just to name a few.
Why are financial values important?
Financial values are important because they help you make better money decisions that reflect who you are and what you care about.
What might happen if your financial behaviors don’t align with your values?
When your financial behaviors don’t align with your values, you may feel frustrated, no matter how much you earn or save, since you’re disconnected from what matters most to you.
Data referenced in this article is drawn from Empathy's original research report, The Hidden Barriers to the Great Wealth Transfer.