Stress, Anxiety, Financial Stress, Psychophysiological, Economics
Results from this exploratory clinical study indicate that financial anxiety—holding an unhealthy attitude about one’s financial situation—and physiological arousal—the physical precursor to behavior—play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggest that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser are those who exhibit high financial anxiety and low physiological arousal. Results support findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Grable, J., Heo, W., & Rabbani, A. (2015). Financial Anxiety, Physiological Arousal, and Planning Intention. Journal of Financial Therapy, 5 (2) 2. https://doi.org/10.4148/1944-9771.1083
Ackert, L. F., Church, B. K., & Deaves, R. (2003). Emotion and financial markets. Federal Reserve Bank of Atlanta Economic Review, 88, 33-41.
American Psychological Association. (2013a). Severity Measure for Generalized Anxiety Disorder—Adult. Retrieved from http://www.psychiatry.org/practice/dsm/dsm5/online-assessment-measures#Disorder
American Psychological Association. (2013b). Stress in America: Missing the health care connection. Washington, DC: APA. Retrieved from http://www.apa.org/news/press/releases/stress/2012/full-report.pdf
Archuleta, K. L., Dale, A., & Spann, S. M. (2013). College students and financial distress: Exploring debt, financial satisfaction, and financial anxiety. Journal of Financial Counseling and Planning, 24(2), 50-62.
Britt, S., & Grable, J. (2012). Your office may be a stressor: Understand how the physical environment of your office affects financial counseling clients. The Standard, 30(2), 5 & 13.
Burchell, B. J. (2003). Identifying, describing and understanding financial aversion: Financial phobes. Retrieved from http://martinfrost.ws/htmlfiles/financial_aversion.pdf Cannon, W. (1932). Wisdom of the Body. New York: W.W. Norton. DeLiema, M., Yun, Y., & Wilber, K. H. (2014). Tricks of the trade: Motivating sales agents to con older adults. The Gerontologist, 54. Retrieved from http://gerontologist.oxfordjournals.org/content/early/2014/05/13/geront.gnu039.full Duffy, E. (1972). Activation. In N. S. Greenfield & R. A. Sternbach (Eds.), Handbook of Psychophysiology (pp. 577-622). New York: Holt, Rinehart and Winston.
Everly, G. S., & Sobelman, S. A. (1987). Assessment of the human stress response: Stress in modern society 4. New York: AMS Press.
Grable, J.E. (2013). Psychophysiological economics: Introducing an emerging field of study. Journal of Financial Service Professionals, 67(5), 16-18.
Grable, J. E., & Britt, S. L. (2012a). Financial news and client stress: Understanding the association from a financial planning perspective. Financial Planning Review, 5(3), 23-36. Grable, J. E., & Britt, S. L. (2012b). Assessing client stress and why it matters to financial advisors. Journal of Financial Service Professionals,66(2), 39-46.
Grable, J. E., & Joo, S. (2001). A further examination of financial help-seeking behavior. Journal of Financial Counseling and Planning, 12(1), 55-65.
Johansen, K. (2013). Information search in pension plan decisions. Applied Economics Letters, 20, 16-18. doi:10.1080/13504851.2013.831163 Kandasamy, N., Hardy, B., Page, L., Schaffner, M., Graggaber, J., Powlson, A. S., Fletcher, P. C., Gurnell, M., & Coates, J. (2014). Cortisol shifts financial risk preferences. Proceedings of the National Academy of Sciences, 111, 3608-3613. doi:10.1073/pnas.1317908111 Malmo, R. B. (1962). Activation. In A. J. Bachrach (Ed.), Experimental foundations of clinical psychology (pp. 386-422). New York: Basic Books. Pope, K. S., & Vetter, V. A. (1992). Ethical dilemmas encountered by members of the American Psychological Association: A national survey. American Psychologist, 47, 397-411. doi:10.1037/0003-066x.47.3.397 Porges, S. W. (2011). The polyvagal theory: Neurophysiological foundations of emotions, attachment, communication, and self-regulation. New York: W.W. Norton & Company. Ratchford, B. (1982). Cost-benefit models for explaining consumer choice and information seeking behavior. Management Science, 28, 197-212. doi:10.1287/mnsc.28.2.197 Rickles, W. H. (1972). Central nervous system substrates of some psychophysiological variables. In N. S. Greenfield & R. A. Sternbach (Eds.), Handbook of Psychophysiology (pp. 93-124). New York: Holt, Rinehart and Winston. Sapolsky, R. M. (1994). Why zebras don’t get ulcers. New York: W. H. Freeman. Seiler, S. (2013). The impact of search costs on consumer behavior: A dynamic approach. Quantitative Marketing & Economics, 11, 155-203. doi:10.1007/s11129-012-9126-7 Selye, H. (1974). Stress without distress. Philadelphia: Lippincott. Shapiro, G. K., & Burchell, B. J. (2012). Measuring financial anxiety. Journal of Neuroscience, Psychology, and Economics, 5, 92-103. doi:10.1037/a0027647 Taylor, S. E. (2002). The tending instinct: How nurturing is essential to who we are and how we live. New York: Holt. doi:10.1080/01612840490486845