Exploring the Role of Spirituality in Financial Life Planning: Key Findings

In the evolving landscape of financial life planning (FLP), the integration of spirituality has emerged as a significant factor influencing the effectiveness of client engagements. A recent dissertation titled “Assessing Spirituality in Financial Life Planning”, by Stephen C. Brody, offers a comprehensive analysis of this topic, revealing critical insights into how spirituality shapes the FLP process. Here, we summarize the key findings of this study.

Defining Financial Life Planning and Spirituality

Financial Life Planning (FLP) extends beyond traditional financial planning by placing the client’s personal history, transitions, goals, and values at the center of the planning process. It aims to align the client’s financial resources with their life values and aspirations, facilitating a life well-lived.

Spirituality in FLP is defined as an element that supports the development of the whole person, grounding the planning process in discovery, awareness, and the understanding of one’s meaning and purpose. This holistic approach integrates both faith-based and faith-neutral perspectives to create a supportive framework for clients.

Impact of Spirituality on Financial Life Planning

The study highlights that the presence of spirituality in FLP positively impacts various aspects of the process:

Client Experience: Clients in a spiritually-infused environment report a safer, more meaningful, and emotionally fulfilling experience. Spirituality facilitates deeper conversations, allowing clients to connect their financial decisions with their core values and life goals.
Planner Effectiveness: Financial life planners who are comfortable discussing spirituality—whether faith-based or faith-neutral—are better equipped to guide clients through significant life transitions and challenges. These planners often have done their own spiritual work, enabling them to foster a more open and trusting environment for their clients.
Professional Practice: Integrating spirituality into FLP encourages a shift from purely transactional interactions to relational and transformative engagements. This approach not only benefits clients but also enhances the planner’s professional satisfaction and sense of purpose.
Broader Impact: The study suggests that spiritually sensitive financial life planning can contribute to the greater good by promoting ethical and values-driven financial decisions, ultimately benefiting communities and society at large.

Factors Contributing to Spirituality in FLP

Several factors influence the presence and effectiveness of spirituality in financial life planning:

Way-of-Being of the Planner: The personal qualities and approach of the planner, including empathy, authenticity, and a commitment to personal growth, are crucial. Planners who embody these traits can create an environment conducive to meaningful and spiritual conversations.
Actions and Skills of the Planner: Specific actions, such as active listening, creating a safe space for discussions, and encouraging clients to reflect on their values and life purpose, are vital. The development and refinement of these skills through ongoing training and self-awareness are essential for effective FLP practice.
Process and Environment: The character and nature of the meeting space, along with the structured process of financial life planning, play significant roles. A welcoming, respectful, and reflective environment enhances the spiritual dimension of the planning process.

Status of Spirituality in the FLP Profession

Despite its importance, spirituality remains under-recognized in the professional and academic discourse of financial life planning. The study identifies several barriers to the integration of spirituality in FLP, including:

Polarizing Nature of the Term ‘Spirituality’: The term can be perceived as problematic or polarizing, leading to a profession-wide hands-off approach.
Lack of Unified Training and Dialogue: There is no profession-wide sponsored training on spirituality, resulting in a vacuum in the professional development pedagogy of financial life planners.
Need for Evidence-Based Practices: The absence of robust, evidence-based data has hindered the incorporation of spirituality into FLP training and practice. This study serves as a foundational step towards addressing this gap and promoting deeper, more meaningful professional engagements.

Proposed Solutions and Recommendations

To break the cycle hindering spiritually sensitive professional development, the study proposes several solutions:

Redefining Spirituality: Broadening the understanding and definition of spirituality to include both faith-based and faith-neutral perspectives can reduce polarization and make the concept more inclusive.
Professional Training: Developing and implementing profession-wide training programs that focus on the spiritual aspects of FLP can equip planners with the necessary skills and knowledge to facilitate deeper conversations.
Encouraging Dialogue: Fostering ongoing professional and academic dialogue on the role of spirituality in FLP can promote a more holistic approach to financial planning.
Supportive Frameworks: Creating frameworks and support systems that recognize and integrate spirituality into FLP practice can enhance the overall effectiveness and impact of the profession.

Conclusion

The integration of spirituality in financial life planning offers a transformative approach that aligns financial decisions with personal values and life purpose. By addressing the barriers and promoting a more inclusive and comprehensive understanding of spirituality, the FLP profession can better serve clients and contribute to the broader goal of fostering well-being and connectedness in society.

For financial life planners and clients alike, embracing spirituality within the planning process represents a significant step towards more meaningful and fulfilling engagements, ultimately leading to a more balanced and purpose-driven life.

For further empirical evidence on the connection between Spirituality and Wellbeing check out: Spirituality and Subjective Well-Being: Evidences for a New Domain in the Personal Well-Being Index.

About Stephen Brody

Stephen C. Brody, CFP®, ChFC®, RLP®, EdD, is a distinguished financial life planner with a career spanning three decades. His extensive experience in the field has established him as a leading authority on integrating spirituality into financial planning. Brody serves as an affiliate faculty member at Creighton University, where he contributes to the academic growth of future financial planners. Additionally, he is a prominent financial educator for major corporations and a dedicated mentor to emerging professionals in the industry.

Brody is the author of the insightful book, What Your Happiest Friends Already Know: The Ultimate Guide to Connecting Your Money and Values with Your Life. His work emphasises the profound impact financial planners can have on their clients’ lives, families, communities, and the broader society by facilitating transformative financial life planning (FLP) engagements.

Inspired by the teachings of industry giants George Kinder and Dick Wagner, Brody embarked on a journey to understand how to intentionally create transformational experiences for clients. His doctoral research involved interviewing 25 leading experts and trainers from prominent FLP training platforms, including the Kinder Institute, Money Quotient, the Sudden Money Institute, and Values-Based Financial Planning.

Brody’s research explored the role of spirituality in FLP, revealing key attributes necessary for planners to foster environments conducive to meaningful and impactful conversations. His findings underscore the importance of spiritual intelligence, personal development, and leadership in enhancing the effectiveness of FLP engagements. Through his work, Brody aims to elevate the profession by integrating spirituality into the core pedagogy of financial planning, ultimately helping clients connect their money with their values to live more purposeful and fulfilling lives.