Editorial

The Journal of Financial Therapy continues to garner national and international attention. This is largely due to the excellent submissions received and the outstanding work of the editorial board and reviewers. Although the Journal is just beginning its second year, papers from the past and current issue have been quoted in the media, on the Internet, and in college classrooms. A simple Google Internet search of the phrase “financial therapy” leads those navigating the World Wide Web directly to the Journal. In conjunction with New Prairie Press, papers, reviews, and profiles are accessible to anyone in the world via the open access journal network, which makes it highly likely that authors will be referenced in additional manuscripts. It is definitely an exciting time to be involved in the development of financial therapy as a new field of study through the Journal

An Investigation of Response Bias Associated with Electronically Delivered Risk-Tolerance Assessment

A randomized experimental study was designed to compare risk-tolerance scores for those who completed a paper-and-pen risk-tolerance assessment instrument (i.e., the control group) to those who answered the same questions using an electronic method. It was hypothesized that the possibility of an electronic bias might be present. Controlling for financial knowledge, which was positively associated with risk tolerance, men were found to report much higher risk-tolerance scores than women when responding to electronically delivered questions. Results suggest that financial therapists ought to consider this possibility as a factor that influences responses to risk assessments, especially as they incorporate additional technological evaluation tools into their practice

Editorial

Welcome to the first edition of the Journal of Financial Therapy

Personal and Family Finance in the Marriage and Family Therapy Domain

The purpose of this study was to determine what changes have occurred in the past 20 years in accredited marriage and family therapy (MFT) programs in terms of student training and preparation for treating family financial concerns. MFT program directors (N = 18) and students (N = 102) responded to an emailed a web survey. Findings indicated that only two master’s degree programs, two doctoral programs, and one post-graduate program offered a personal or family finance course elective. A discussion about the implications this limited exposure to personal finance topics plays in professional training is provided

The Impact Of Decision Power On Financial Risk Tolerance And Asset Allocation

This research considers the impact of decision power (Blood & Wolfe, 1960) and demographic variables within a couple’s relationship on risk tolerance and portfolio risk levels. Married couples (N = 175) separately completed a survey consisting of the Blood and Wolfe Decision Power Index, the Survey of Consumer Finances risk tolerance question, demographic information, and selected financial variables. Unlike their husbands, the study found an effect of decision power for wives and portfolio risk level, suggesting that the wife’s decision power affects portfolio risk levels. Decision power was found to be a significant factor in risk tolerance for both the husband and wife. Findings indicate that both portfolio risk levels and risk tolerance is determined by the education of the wife and not the husband. Further, a divergence in risk levels occurred when the husband owned a greater degree of assets than the wife

Solution Focused Financial Therapy: A Brief Report of a Pilot Study

The financial counseling, financial planning, and financial therapy fields are hampered by a conceptual and empirical paucity of clinical and experimental evidence-based research. In an attempt to decrease this gap in the literature, a pilot study was developed to test the implementation of a solution-focused financial therapy client intervention approach, in which solution-focused therapy techniques were applied in a financial counseling setting. This paper reports findings from a clinical intervention study of college students (N = 8) who presented a variety of financial issues related to budgeting, investing, and debt repayment problems. Data were gathered prior to the start of treatment, after treatment ended, and three months later. Participants’ psychological well-being and financial behaviors improved, while financial distress decreased. The solution-focused financial therapy approach used is discussed

The impact of shared financial decision making on overconfidence for married adults

Previous research has shown that overconfidence is associated with a decrease in the quality of decision making and, therefore, decision outcomes. However, less is known about the conditions or circumstances that reduce financial overconfidence. Using data from two national studies, this study was designed to provide insights into the dynamics of intrahousehold financial decision making by examining the role of shared decision making in reducing overconfidence bias. Findings suggest that a psychological sense of shared ownership of money is associated with lower levels of overconfidence. With regard to financial planning practice, these results suggest that married individuals who believe in shared ownership of household money tend to have lower levels of overconfidence

Tailoring Science Outreach through E-Matching Using a Community-Based Participatory Approach

In an effort to increase science exposure for pre-college (K-12) students and as part of the science education reform agenda, many biomedical research institutions have established university-community partnerships. Typically, these science outreach programs consist of pre-structured, generic exposure for students, with little community engagement. However, the use of a medium that is accessible to both teachers and scientists, electronic web-based matchmaking (E-matching) provides an opportunity for tailored outreach utilizing a community-based participatory approach (CBPA), which involves all stakeholders in the planning and implementation of the science outreach based on the interests of teachers/students and scientists. E-matching is a timely and urgent endeavor that provides a rapid connection for science engagement between teachers/students and experts in an effort to fill the science outreach gap. National Lab Network (formerly National Lab Day), an ongoing initiative to increase science equity and literacy, provides a model for engaging the public in science via an E-matching and hands-on learning approach. We argue that science outreach should be a dynamic endeavor that changes according to the needs of a target school. We will describe a case study of a tailored science outreach activity in which a public school that serves mostly under-represented minority students from disadvantaged backgrounds were E-matched with a university, and subsequently became equal partners in the development of the science outreach plan. In addition, we will show how global science outreach endeavors may utilize a CBPA, like E-matching, to support a pipeline to science among under-represented minority students and students from disadvantaged backgrounds. By merging the CBPA concept with a practical case example, we hope to inform science outreach practices via the lens of a tailored E-matching approach

Personal Finance: An Interdisciplinary Profession

This commentary recommends that financial counseling and planning research, education, and practice be framed as an interdisciplinary profession called personal finance. Authors summarize the history of the profession and key theories providing the conceptual foundation. In order for the emerging profession of personal finance to achieve significant visibility and gain maturity, professionals must reach consensus on definining collective scholarship. Readers are encouraged to engage in the dialogue and comment on the call to action by contacting the lead author

Solution Focused Financial Therapy: A Brief Report of a Pilot Study

The financial counseling, financial planning, and financial therapy fields are hampered by a conceptual and empirical paucity of clinical and experimental evidence-based research. In an attempt to decrease this gap in the literature, a pilot study was developed to test the implementation of a solution-focused financial therapy client intervention approach, in which solution-focused therapy techniques were applied in a financial counseling setting. This paper reports findings from a clinical intervention study of college students (N = 8) who presented a variety of financial issues related to budgeting, investing, and debt repayment problems. Data were gathered prior to the start of treatment, after treatment ended, and three months later. Participants’ psychological well-being and financial behaviors improved, while financial distress decreased. The solution-focused financial therapy approach used is discussed