Derek Hagen, CFA, CFP®, FBS®, CFT™

As financial life planners, we know that everyone is a product of their unique journey. Childhood memories, teenage experiences, and adult challenges all shape how clients view the world—and how they think about money.

“You can’t connect the dots looking forward; you can only connect them looking backwards.” -Steve Jobs

Understanding a client’s past can help them gain insights into their money beliefs, attitudes, behaviors, and perspectives. By working with clients to explore their journey, we can help them understand their financial outlook and deepen their self-awareness.

Subscribe for Updates

Get notified when the latest articles are published.

The Influence of Experience

During childhood, people observe and experiment to make sense of the world around them, forming early beliefs. Imagine a child whose parents argue each time they discuss money. The child might start with a hypothesis: “If they talk about money, then they fight.” Each repeated experience reinforces this hypothesis, eventually turning it into a belief: “Talking about money leads to conflict, so I should avoid those conversations.”

These early beliefs can shape clients’ views of money for decades. Our role is to help clients recognize how these experiences influence their current financial habits and decisions.

Younger clients might have fewer life experiences than their older counterparts, but that need not be a bad thing. They aren’t necessarily seeking wisdom. Instead, they need guidance in understanding their own perspective on money. By exploring this, they can avoid falling into the trap of “mimetic desire”—the urge to imitate others’ desires and values without introspection.

As advisors, we know clients’ perspectives will evolve over time. Our role includes helping them through transitions, gaining clarity on their journey, and cultivating what we might call inner wisdom—an understanding of their values and experiences as an ongoing, dynamic process.

Life-Changing Experiences

Many people go through life on autopilot, driven by what they think they should value. They focus on external markers—what society tells them is important. This can create a gap between what they’re doing and what truly brings fulfillment.

For some, a life-changing event—like a near-death experience—brings intrinsic values and priorities into focus. They often emerge with a newfound commitment to what truly matters to them.

The show I Shouldn’t Be Alive, for example, often follows survivors of harrowing situations who, upon reflecting, realize they had been neglecting their deepest values.

The movie Fight Club explores this when Tyler Durden forces a clerk to face his unfulfilled dream of becoming a vet, albeit in an extreme way. While unconventional, the scene underlines a truth: life’s pivotal moments can push people to reconnect with their core aspirations.

We want clients to connect with their intrinsic values without a traumatic catalyst. By helping clients explore their past, we facilitate an environment for meaningful self-discovery, aligning their actions with what truly fulfills them.

Money Quotient’s Biography tools are tailored to help advisors facilitate these deep conversations. They help uncover clients’ unique experiences, values, and life lessons, making it easier to align their financial decisions with what’s most meaningful.

Want to Learn More?

Money Quotient trains financial professionals in the True Wealth process, helping them integrate these insights into their practices. The first step is the Fundamentals of True Wealth Planning training—a hands-on approach to building life-centered financial practices.