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Psychometrics: Measuring Unseen Client Characteristics Psychometrics is the science and practice associated with the measurement of human characteristics. These are often referred to as “unseen” individual characteristics, including cognitive ability, personality, and knowledge. Typically, psychometricians are borne out of applied psychological and educational fields. Psychometrics has been used for over a century in a variety of fields for decision-making, counseling and coaching, and self-assessment, including, but not limited to: Clinical psychology and psychiatry Educational …
Knowledge is power, and the basis of all knowledge is having the right data. Datapoints (or, data points, if you like) are the smallest form of data. Think of them like information atoms. Alone, they’re seemingly small and insignificant. But when you combine them, you can discover trends, uncover essential information, and better understand the world around you. These minuscule particles of information can be essential to learning about others and ourselves. Here’s what …
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. …
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 …
Individual personality traits can (and do) impact whether a client achieves financial goals. Behavioral assessments can help uncover client personality, values, attitudes, and beliefs. In turn, you can use this information to help provide the client with personalized guidance, education, coaching, or nudging to help them follow the financial plan and otherwise achieve goals. Below, we will discuss best practices in implementing behavioral assessments in a financial planning client workflow. Let’s start with a …