Why Emotions Drive Financial Behavior: Insights from My Conversation with Dr. Daniel Crosby

Oct 20

When it comes to financial decision-making, we like to believe we’re rational. Logical. Grounded in the numbers.

But as I shared on the Standard Deviations podcast with Dr. Daniel Crosby, what often drives financial behavior isn’t logic—it’s emotion.

In this episode, we explored the real-life dynamics behind the decisions clients make and what financial professionals can do to navigate them with more empathy, skill, and confidence.

Emotions Aren’t a Distraction—They’re the Data

One of the biggest myths in our profession is that emotions are something to be managed or minimized.

In reality? They’re the most important signals in the room.

I shared with Daniel how my background as a Licensed Marriage and Family Therapist and Certified Financial Behavior Specialist® has taught me to see emotions not as noise, but as data—data that reveals values, fears, past wounds, and future hopes.

The question is: Are we trained to listen?

Advisors Are Trained for Planning, Not Processing

Many advisors tell me they feel caught off guard in client meetings—not by the planning questions, but by the emotional undercurrents that arise.

Think about it:

A client hesitates to follow through on a financial plan.
A couple argues over retirement timelines.
A parent avoids discussing estate planning altogether.

These aren’t just financial issues—they’re emotional ones. And when advisors aren't prepared to navigate those dynamics, they can miss the real opportunity: connection.

The Power of Presence Over Performance

One of the key takeaways I shared is this: advisors don’t need to become therapists.

But they do need to be present. Curious. Willing to slow down.

So much of this work is about showing up with humility—acknowledging that a client’s financial behavior is shaped by more than spreadsheets. It’s shaped by their lived experience.

On the podcast, we talked about how presence can be the most powerful “tool” in your advisor toolbox. Because when a client feels seen and safe, they’re more likely to engage, follow through, and open up to the advice that truly serves them.

Understanding the Couple Dynamic

Another big theme in our conversation was how money operates in relationships—particularly for couples.

In my work, I’ve seen how money fights are rarely about money. They’re about trust. Power. Security. Sometimes, they’re about two people operating from completely different belief systems about what money should do.

We talked about how advisors can hold space for both partners—without becoming referees—and how asking the right questions early on can prevent bigger breakdowns down the line.