Why Avoid Personality “Type” Tests

A class of personality tests, known generically as “type indicators,” places clients into one of several categories based on responses to a series of questions and then provides broad descriptions of the category. Some examples of “type indicators” include the Myers-Briggs Type Indicator (MBTI) and the very popular Enneagram.  Type tests are so much fun! It’s fun to see which category you (or your clients) fall into, what other movie stars or sports figures align …
Personality tests help individuals understand how their unique behavioral traits and tendencies relate to their saving, spending, and investing patterns. General personality factors, like those included in the so-called “Big Five” personality traits, impact money-related outcomes like income and net worth. So while we’re helping clients understand their unique traits with individual reports and insights, this same data can help firms predict what clients might do in the future. We can also predict which …
With the year almost in the rearview mirror, I wanted to share with you what you can expect from DataPoints in the new year. Our team is focused on providing our advisor clients tools to uncover client money mindset, personalize advice and guidance, and apply the psychology of financial planning. Focus: Identifying Client Money Mindset If you’re a small business owner like us, you know it is tempting to be all things to everyone. …
Explore Gratitude Our financial psychology is shaped by life events. Exploring past experiences can help us understand how we react and feel today.  Use the questions below to explore the way you feel and express gratitude. Think about a time you felt an overwhelming amount of gratefulness. What were you grateful for, and how did that experience shape how you express gratitude today?   In what areas of your life do you find it easy to …
A personality test can efficiently measure a client’s money-related attitudes, values, and other characteristics. While not a perfect science, a well-developed test can accurately assess a client’s personality without some downsides of in-person interviews, which can take time and be impacted by interviewers’ biases or lack of structure.  But like any assessment, personality tests are prone to some errors. These errors could include how clients respond to a test based on wanting to look …

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