Client Behavior & Communication
Behavioral Discovery
Money Scripts in Discovery: A Fast Behavioral Diagnostic That Prevents the Next Panic Sell
This framework gives advisors a simple 30-minute diagnostic they can run during discovery or reviews. It turns client money beliefs into concrete planning guardrails before stress events trigger bad decisions.
Sources
- Kahneman and Tversky (Prospect Theory)
- Klontz Money Script Inventory research
- CFP Board CE: Motivational Interviewing modules
- Financial Planning Association Journal (MI and FPEQ)
Highlights
What This Protocol Helps You Do
30 minutes
to run the full behavioral diagnostic
One page
to document a behavioral IPS clients can follow
Section A
Why Beliefs Matter More Than More Math
Most clients do not fail because they lacked a chart. They fail when stress overrides their plan. Prospect Theory and money script research both point to the same operating truth: beliefs and framing shape risk behavior in the moments that matter.
1
Treat money stories as predictive data
Listen for repeated language around safety, guilt, status, control, and fear. Those patterns often forecast implementation failure more accurately than a risk score alone.
2
Build for moments of pressure
Do not design a plan only for calm markets. Design a process for what clients do when headlines and emotions spike.
Section B
Run the 30-Minute Behavioral Balance Sheet
3
Prime the conversation in two minutes
Start with: "My job is not only optimization. It is preventing expensive decisions under stress." This framing gives clients permission to discuss emotions without shame.
4
Elicit beliefs with open prompts
Ask about early money lessons, past stress events, their definition of "enough," and how they imagine reacting to a major market drop.
5
Classify the dominant script
Use script families as working hypotheses, not labels. Most clients blend profiles, but one dominant driver usually explains their hardest decisions.
6
Capture coaching preferences explicitly
Ask how they want you to intervene when pressure rises: direct call, message, pause rule, or same-day meeting.
Section C
Translate Scripts Into a Failure Mode Map
Every script should map to a trigger, a bad decision to prevent, and a pre-approved replacement behavior.
7
Vigilance pattern
Trigger: market crash headlines. Risk: stopping investments or hoarding cash. Protocol: follow preset rebalancing and call you before any sell.
8
Worship or status pattern
Trigger: raise, bonus, or liquidity event. Risk: permanent lifestyle expansion or leverage. Protocol: run a cooling-off review for any major spending commitment.
9
Avoidance pattern
Trigger: paperwork fatigue. Risk: delayed estate and insurance work. Protocol: one-action meetings with live completion.
Section D
Use MI-Lite to Convert Insight Into Commitment
If you explain perfectly but clients still resist, switch from persuasion to motivational interviewing micro-skills.
10
Open questions
"What feels most uncertain right now?" invites reflection. It is more effective than proving why concern is irrational.
11
Reflect and summarize
Reflect the core emotion, then summarize the exact commitment. Example: "You want growth and stability, so we will keep contributions on and review before any allocation change."
12
Secure verbal permission
Ask for a simple contract: "If you feel pressure to sell, will you call me first?" This creates a practical interruption rule.
Section E
Operationalize It Like a Core Service
13
Embed it in your meeting cadence
Add the diagnostic to discovery meeting two and refresh it at annual reviews with any new triggers.
14
Segment follow-up by behavioral risk
High-risk households get proactive outreach during volatility, tighter guardrails, and more frequent planning check-ins.
15
Track outcome metrics
Monitor behavioral IPS coverage, panic contacts per 100 households, planning task completion, and retention in down markets.
Section F
Common Mistakes to Avoid
16
Do not label clients
Keep script language internal. Share behavior patterns and agreed actions, not psychological labels.
17
Do not stop at insight
A good conversation is not enough. Convert each trigger into a specific action rule tied to the actual plan.
18
Do not over-teach in stress moments
When emotions are high, fewer words and clearer process usually win.
References
Sources and Further Reading
Want the behavioral IPS template?
Get a one-page worksheet you can use in discovery meetings and annual reviews.