Money isn't math, it's emotion — especially in scary economic times

On my first day in production as a young stockbroker, the Dow Jones Industrial Average closed at 902.65. I've been worried every day since.

Can I avoid worry? Of course not. Neither can you, and neither can your clients.

Our money represents the most emotionally charged elements of our lives. It symbolizes everything from security, uncertainty, control, self-worth, status and family responsibility. It provides food, shelter, health care and safety. When we feel our money is at risk, our brain treats it like a threat to our survival, triggering stress and fear.

Daniel Kahneman, the late Nobel Prize-winning psychologist and author of "Thinking, Fast and Slow," taught us that people often make decisions with the emotional brain, not the rational one, especially under stress. When markets drop, people don't think clearly. They react. 

That is when clients need to be assured that everything will be OK. Most people were never taught how money works. They don't know how to plan, save, invest or protect what they've earned — and that creates a steady, low-grade anxiety that something could go wrong.

READ MORE: How to coach clients through the chaos of market volatility

Metaphorically speaking

I've learned that addressing that worry with an easy-to-remember story, simile or metaphor can be effective. For instance:

"When your gas tank is full, Mr. and Ms. Client, you feel calm, confident and free to drive wherever you want. But when the needle gets low — or worse, the warning light turns on — your mind can't focus on anything else. You start scanning for gas stations, fretting about traffic, calculating how far you can get before the needle reaches empty. It doesn't matter how nice the car is or what the weather's like — if you don't feel secure about the fuel, the ride is stressful."

Then the takeaway: "That's how our money works. When we feel financially secure, life feels open and manageable. But when we're unsure about the future — when that 'low fuel' light is on — it becomes hard to think clearly or feel at peace. That's why smart planning matters. It keeps your tank from running too low and lets you enjoy the ride." 

Carry that weight

Every client needs reassurances, especially in times of volatility. But the message must connect emotionally. Money is emotional weight.

Here is a story: A financial advisor asks a client, "When you think about money, what comes to mind?" The client says, "It feels like I'm dragging around a heavy suitcase. I packed it a long time ago, and I'm not even sure what's in it anymore, but I carry it everywhere." 

That suitcase is full of things, including memories of her parents arguing about bills, fear of not having enough when a recession hits, guilt from spending on herself and the pride of being the first in her family to save. For the client, money wasn't about numbers — it was memories, stories, fears and identity.

READ MORE: Everyone wants money. But what's it mean to be wealthy?

Be aware that every client carries a metaphorical money suitcase. If you want to help them financially, you need to understand what's packed inside emotionally. Before you unpack the numbers, unpack the feelings.

I caution you that people — especially emotional people — do not respond to raw data. The data must be wrapped in a message people can emotionally accept, much like giving a dog a pill in which the medicine is hidden in a treat. 

Stories and analogies are sticky. They help clients feel the message, not just hear it. You can tell clients that the market is down 5% year-to-date or you can say: "This downturn is like turbulence on a flight. It's uncomfortable, but we're still on course — and we've built your plane to land safely."

By blending technical expertise with emotional intelligence, advisors can not only preserve client relationships during periods of market volatility, but also emerge with deeper, more resilient partnerships.