Friday, November 16th, 2018
Category: Behavioral Finance
Empowering the Rider and Taming the Elephant: Helping Clients Succeed on their Financial Journey
The metaphor of the elephant and rider (Haidt, 2006) is a visual representation of the complex cognitive processes that influence financial decision-making. The elephant represents our subconscious and is big, powerful, and makes intuitive decisions. The rider represents our conscious and reasoning, capable of complex problem-solving, yet relatively weak on the back of the elephant. Left unchecked, the dynamics of the elephant and the rider can lead to mistakes. This session will help practitioners, educators, and program developers learn more about the elephant and the rider metaphor. We will demonstrate how it can expand your understanding of client behavior, as well as be taught to your clients to give them insight into their own decision-making process. Examples of common financial decisions in light of the metaphor and corresponding practical techniques will be presented that may help your clients increase their financial discipline. You will leave with new tools to help clients tame their elephant and empower their rider!