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The power of positive framing: practical insights for Australian financial planners
Sonya Lutter, Ph.D., CFP®, LMFT
Professor of Practice, School of Financial Planning – Texas Tech University
As financial planners, you know that numbers matter – but the value that you add is more than just numbers on a spreadsheet. A new study, published in the FAAA’s Financial Planning Research Journal, highlights how the way we present information to clients can shape their financial wellness, motivation, and overall satisfaction.
What is positive framing?
Positive framing means presenting information in a way that emphasises strengths, progress, and opportunities, rather than focusing on shortcomings or risks. For example, instead of saying “You’re behind on your retirement savings,” a planner might say, “You’ve made great progress, and with a few adjustments, you can reach your goals.”
Key findings from the research
- Clients respond better to positive comparisons – when clients were prompted to compare themselves favourably to their peers (“better off financially”), they reported higher levels of joy, preparedness, and confidence about their financial situation than those who were prompted to see themselves as “worse off”.
- Framing influences perception, not just reality – the study found that positive framing led to more optimistic self-assessments, even when there were no actual differences in income, assets, or financial literacy between groups.
- Preparedness and happiness improve – clients exposed to positive framing felt more prepared to manage their finances and were more likely to use money to create joy and happiness in their lives.
- No impact on family conflict or hard outcomes – positive framing didn’t affect how often clients reported family conflict about money or their family’s financial preparedness for death or disability—these are more objective measures, less influenced by perception.
Why does this matter for financial planners?
Australian financial planners are increasingly expected to support not just their clients’ financial outcomes, but their overall wellbeing. The research shows that how we communicate can make a real difference in clients’ attitudes and behaviours.
Practical takeaways for your practice
- Highlight progress and strengths – regularly acknowledge your clients’ achievements, no matter how small. “The progress you’ve made is impressive and speaks to your commitment.”
- Frame goals positively – emphasise what clients stand to gain by taking action, rather than what they might lose by not acting. For example, “Increasing your super contributions will help you enjoy more freedom in retirement.”
- Encourage meaningful experiences – help clients recognise and celebrate financial milestones, such as paying off debt or reaching a savings goal.
- Practice kindness and purpose – suggest ways clients can use their finances to support causes or people they care about, reinforcing a sense of purpose.
- Stay realistic – while optimism is powerful, avoid creating unrealistic expectations. Be transparent about risks and challenges, and ensure clients understand both the positives and the potential pitfalls.
A word of caution
Positive framing is not about ignoring risks or sugar-coating reality. It’s about empowering clients to see possibilities and build resilience, while still providing honest, balanced advice.
In summary
You don’t have to be a therapist to communicate therapeutically. By integrating positive psychology and strengths-based communication into your financial planning practice, you can help clients feel more confident, motivated, and prepared for their financial future.
Want to read the full research?
Check out “The Role of Positive Framing in the Future of Financial Planning” in the Financial Planning Research Journal, published by FAAA here.
The FAAA is proud to support and share global best practice research, helping Australian financial planners stay at the forefront of client care and professional excellence.
