My Key Take-Aways From The #AFCPE2023 Symposium

I recently attended the 2023 Association for Financial Counseling and Planning Education (AFCPE) Symposium along with over 600 financial educators, researchers, planners, counselors, and other practitioners. Below are six key take-aways:

 

Climate and Finances- Financial impacts of climate change include the cost of property damage and infrastructure repairs (think floods, hurricanes, wildfires, and tornados), higher home energy spending (e.g., air conditioning due to more frequent heat waves), chronic health condition expenses (e.g., asthma), and higher property insurance premiums.

 

Nursing Home Admission- The median stay in a nursing home is 2.2 years. Older adults applying for Medicaid funding need cash for about three months of care because it takes that long to process an application. Medicaid will reimburse this cost (if approved), but it will not pay for nursing home care until someone is admitted to a nursing home and nursing homes will not admit patients without an upfront payment. Houses should be retitled solely in the name of the community (non-institutionalized) spouse or Medicaid will put a lien on it.

 

Financial Biases- People have many biases that affect their financial behavior. Examples include anchoring (latching on to an inappropriate reference point) and the endowment effect (over-valuing things that you own). Ways to leverage biases for good include automating positive behaviors (e.g., savings), having an accountability partner, and setting up personal decision rules (e.g., “if my stock goes up 10%, I’ll sell 10% of the shares”).

 

Consumer Debt- Outstanding consumer debt in the U.S. now totals $15 trillion and many households are one financial shock away from financial distress. In addition, Buy Now, Pay Later (BNPL) sales have experienced a ten-fold increase in recent years. BNPL started as a product for beauty and apparel items but is now used for many types of purchases (e.g., travel).

 

“Oldest Old” Adults- There are four types of caregivers and many people experience multiple types: those who have been caregivers, are caregivers, will be caregivers, and will need caregivers. Adults age 85+ are the fastest growing age demographic in the U.S. and experience the greatest incidence of cognitive decline, making them vulnerable to financial fraud. Protective factors against financial fraud are a lifetime of knowledge, prior knowledge and education about scams, and disclosure of scam attempts to others.

The Power of Stories- Powerful brain chemicals are released when people share stories and one of them, cortisol, assists with retention of information and memories. Financial educators (and anyone trying to influence others) should be both story tellers and story listeners. The story listening process consists of four steps: receiving information, appreciating the story (e.g., “thank you for sharing this with me”), summarizing (i.e., repeating back what you heard), and asking follow-up questions (e.g., “can you share more with me about…?” and “tell me more about that”).

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.