Are Your Own Money Beliefs Affecting Your Advice? How Advisors Can Recognize and Manage Personal Biases

Financial advisors are trained to guide clients toward smart, rational, evidence-based decisions. But what happens when your own money beliefs start to shape the advice you give? And can you spot when it’s happening?

Whether we realize it or not, we all bring personal experiences, values, and biases into our work. And for advisors, these unconscious influences can subtly - but significantly - affect everything from how we frame a recommendation to how we respond to client hesitation.

In this blog, we’ll explore:

• The most common types of advisor bias

• Why self-awareness is a professional asset

• Actionable strategies to ensure your advice reflects your clients' needs - not your own assumptions.

Let’s dive in.

What Is Advisor Bias?

Advisor bias refers to the unconscious beliefs, experiences, or preferences that shape the way financial professionals interpret information, assess client needs, and deliver recommendations. These biases can impact:

• Investment strategies

• Risk assessments

• Spending or saving recommendations

• Communication and trust-building

• Client decision-making support

While many advisors are aware of behavioral finance as it applies to clients, fewer pause to reflect on their own internal scripts.

Types of Biases Advisors Might Bring into the Meeting

1. Confirmation Bias

You may unintentionally give more weight to information that supports your existing beliefs while overlooking contradictory data.

Example: You believe conservative portfolios are best for most retirees, so you steer clients in that direction without fully exploring their appetite for growth.

2. Projection Bias

Assuming clients think, feel, or value money the same way you do.

Example: You personally believe debt should be avoided at all costs, so you discourage strategic borrowing that may actually support a client's goals.

3. Overconfidence Bias

Believing your knowledge or strategy is inherently superior—and underestimating risks or alternative paths.

Example: You dismiss a client’s preference for ESG investments because you believe your model portfolio will always outperform.

4. Anchoring Bias

Letting a single data point (past experience, a prior meeting, one strong opinion) overly influence decisions.

Example: Because one client failed to stick to a budget, you approach all budget conversations with skepticism.

5. Availability Bias

Relying on recent or emotionally charged examples when making decisions.

Example: A recent market downturn makes you overly cautious in new portfolio recommendations.

Why It Matters: The Cost of Unchecked Bias

Advisor bias can lead to:

• Recommendations that feel misaligned or irrelevant to the client

• Missed opportunities for deeper engagement

• Friction or resistance in communication

• Less successful implementation of financial plans

• Unconscious steering toward goals that reflect the advisor’s priorities

When clients sense they aren’t being heard or that their values aren’t considered, trust erodes. On the other hand, when advisors are aware of their own lenses, they become better partners in decision-making.

How to Spot Your Own Biases as a Financial Advisor

Ask Yourself:

• Do I assume clients should follow the same financial path I did?

• Do I push back harder on client decisions that differ from my own beliefs?

• Am I more comfortable talking about topics that align with my personal financial philosophy?

• Do I find myself judging certain client behaviors as “irresponsible” without understanding their context?

Pay Attention To:

• Your emotional reactions in meetings (frustration, resistance, urgency)

• Recurring patterns in client pushback or confusion

• Topics you avoid or gloss over

Use a Peer or Coach:

Engage in case consultations or peer conversations to get an outside perspective on how your own preferences may be shaping your approach.

A Framework for Staying Client-Centered

As a Certified Financial Behavior Specialist®, I use the Think. Feel. Do.™ model with the firms I support. It helps teams:

• THINK: What beliefs or biases might be influencing my perception?

• FEEL: How is this client feeling right now - and how might my emotional response be influencing theirs?

• DO: What can I change in my delivery, tone, or strategy to stay aligned with their needs?

Tips for Managing and Reducing Advisor Bias

1. Practice Reflective Journaling

After client meetings, jot down:

• What surprised you?

• What did you assume that turned out differently?

• Where did you feel resistance or discomfort?

2. Implement Structured Discovery Questions

Use a consistent, open-ended discovery process that prevents early judgment or assumption.

Try this: “Can you share what financial success means to you personally?” instead of “How much do you want to save?”

3. Diversify Your Input

Read case studies or listen to podcasts featuring different advisor philosophies. Exposure to diverse practices and stories can expand your empathy and reduce rigidity.

4. Invite Feedback

Ask team members or even long-standing clients: “Is there anything I do that makes you feel unseen or unheard?”

5. Explore Your Own Money Story

Consider your upbringing, financial experiences, and values. What messages were handed to you about:

• Debt

• Wealth

• Investing

• Generosity

• Risk

Understanding your own money narrative can reduce projection and increase clarity.

When Bias Isn’t Just Personal - But Cultural

Firm culture can also shape advisor bias. Do your scripts, planning tools, and marketing materials reflect a narrow worldview? Inclusive planning requires:

• Representing a range of client voices

• Training advisors in cultural and generational sensitivity

• Updating materials to reflect diverse financial values

What Happens When You Do the Work?

When advisors examine and manage their own biases:

• Clients feel heard, not steered

• Plans become more actionable

• Relationships deepen

• Teams communicate more clearly

• Your role evolves from expert to collaborative guide

Self-awareness isn’t just good for clients. It’s good for you, too. You build resilience, expand your skill set, and become a more trusted, transformational advisor.

Want to Learn More?

Check out my podcast episode: Understanding Clients' Financial Trauma where I dive deeper into how past experiences shape financial behavior - and how to recognize when what’s showing up in your office isn’t about the numbers at all.

Understand why you and your clients Think. Feel. Do.™

You don’t have to be perfect. But if you want to build a firm that lasts - and clients who trust you deeply - this work matters.

When you make space to explore your own beliefs, you make more space for your clients.

And when your advice comes from a place of curiosity instead of assumption? That’s when real transformation happens.

Want help identifying and addressing advisor bias inside your firm?

That’s exactly what I do. Let’s talk about how we can bring behavioral finance from the background to the forefront of your client experience.