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  • Writer's pictureBrad Wooten

What is Behavioral Financial Advice and What are the Benefits?

As part of my CPA Firm in Lake Nona, a community within Orlando, FL "the City Beautiful", I receive a lot of questions and comments related to personal finances. I have been studying for the BFA (Behavioral Financial Advisor) certification in order to better serve my clients.

In the world of personal finance, understanding human behavior is just as important as understanding economic principles. Behavioral financial advice is a holistic approach that combines financial expertise with an understanding of how emotions and biases impact decision-making. Let's explore what behavioral financial advice is, why it matters, and how it can help you make better financial choices.

Understanding Behavioral Financial Advice

Behavioral financial advice is a specialized type of financial advice that recognizes the significant influence of human psychology and neurology on financial decision-making. It acknowledges that individuals don't always make rational choices and that emotions, biases, and heuristics often play a substantial role in shaping financial behavior.

Key Components of Behavioral Financial Advice

  1. Emotional Awareness: Behavioral financial advisors pay close attention to the emotional aspects of financial decision-making. They understand that emotions like fear, greed, and overconfidence can lead to impulsive or irrational choices.

  2. Behavioral Biases: They help clients identify and mitigate common behavioral biases such as confirmation bias (seeking information that confirms pre-existing beliefs) and loss aversion (the tendency to prefer avoiding losses over acquiring equivalent gains).

  3. Goal Setting and Visualization: Advisors work with clients to define clear financial goals and create a roadmap to achieve them. Visualization techniques are often used to help clients imagine their financial future, providing motivation and a tangible target to work towards.

  4. Risk Tolerance Assessment: Understanding an individual's risk tolerance is crucial for crafting a tailored financial plan. Behavioral advisors take into account emotional responses to risk and help clients find a balanced approach.

  5. Education and Communication: They simplify complex financial concepts and communicate in a way that resonates with their clients' understanding and concerns. This empowers individuals to make informed decisions.

Benefits of Behavioral Financial Advice

  1. Improved Decision-Making: By recognizing and addressing behavioral biases, individuals can make more rational and informed financial choices.

  2. Reduced Emotional Stress: A deeper understanding of emotions and how they influence financial decisions can lead to reduced anxiety and stress related to money matters.

  3. Long-term Financial Success: Behavioral financial advice focuses on sustainable strategies that align with an individual's values and goals, increasing the likelihood of long-term financial success.


In a world where financial decisions are often driven by emotions and biases, behavioral financial advice serves as a guiding light. By integrating psychological insights with financial expertise, it empowers individuals to make more rational, informed, and ultimately, more successful financial choices. Seeking the guidance of a behavioral financial advisor can be a transformative step towards achieving your financial aspirations. Remember, it's not just about the numbers, but about understanding and harnessing the power of your own behavior in the world of finance.


I enjoy helping individuals with tax preparation and tax planning as well as offering financial coaching to individuals (and businesses) looking to overcome challenges and reach their financial dreams. I also service businesses (including nonprofits and churches) by providing tax preparation and tax planning as well as consulting for accounting, bookkeeping, and other finance related questions. I live in Orlando, FL, but I serve clients all across the country. Contact us if you need assistance and take a look at the resource page.

6900 Tavistock Lakes Blvd Ste 400

Orlando, FL 32827

(407) 243-8678

Serving clients in Orlando, Lake Nona, Altamonte Springs, Apopka, Azalea Park, Celebration, Hunters Creek, Lake Buena Vista, Lake Hart, St Cloud, Winter Garden, Winter Park and via the latest technology remotely around the country.

*The blog posts (as well as the YouTube channel) are my personal opinions and thoughts about a wide range of topics. They are not meant to apply to individuals specifically and should never be relied on as tax or investment advice. You should contact a professional for specific advice before taking action.

**This blog post was created with the assistance of artificial intelligence, edited by me, and expresses my personal opinions on the subject matter.

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