1. Principles of Communication and Counseling

2. Topic 75: Principles of Communication and Counseling Learning Objectives Explain the applications of counseling theory to financial planning practice. Demonstrate how a planner can develop a relationship of honesty and trust in client interaction. Assess the components of communications including linguistic signs and non-verbal communications. Apply active listening skills when communicating with clients. Select appropriate counseling and communication techniques for use with individual clients.

3. Topic 75: Principles of Communication and Counseling Topics: Types of structured communication Essentials in financial counseling Characteristics of effective counselors Nonverbal behaviors Attending and listening skills Effective use of questions

4. Topic 75: Types of Structured Communication Interviewing Asking questions to get information needed in the Interpersonal Communication process Used primarily during the data gathering stage Advising Giving direction, guidance, and recommendations to a client Counseling Working with the client in a collaborative mode to achieve the client’s financial goals rather than dictating a solution or taking control of the plan

5. Topic 75: Essentials in Financial Counseling Describe the financial planning process that will be used to create the financial plan Create rapport with each client Help the counselor to work effectively with the client to achieve the client’s financial goals Recognize resistance Help the client to overcome blocks to completing the financial planning process

6. Topic 75: Characteristics of Effective Counselors Maintain unconditional positive regard for the client Must value and respect the client regardless of what the client says or does Accurate empathy Understand the client Let the client’s perspective inform the Interpersonal Communication process Be genuine Open, honest, and true to his or her own values Be self-aware Without self-awareness the counselor will mistake his own values, interests, and desires for the client’s

7. Topic 75: Nonverbal Behaviors A client’s body and voice can communicate information to the counselor different from and in addition to what is contained in the words spoken by the client Body positions, posture, movements, gestures, and facial expression The pitch and tone of the client’s voice The counselor can explore further to discover the reason nonverbal behaviors are inconsistent with the verbal message

8. Topic 75: Attending and Listening Skills Physical attending requires the counselor to use SOLER Squarely facing the client, Open posture, Leaning toward the client, Eye contact, and Relaxed Psychological attending requires active listening Continuing response Restatement response Reflection-of-feelings response Clarification response Summarization response Leading responses: Explanatory response Interpretive response Reassuring response Suggestive response

9. Topic 75: Psychological Attending Continuing response – Encourage client to continue talking: “Yes, I understand.” Restatement response – Paraphrase and repeat what the client is saying Reflection-of-feelings response – Communicate empathy for client’s situation Clarification response – Restate and amplify in order to gain a more precise statement of the situation Summarization response – Summarize the client’s statement to determine if what you heard was what they intended

10. Topic 75: Effective Use of Questions Open-end questions Encouraging the client to speak at length about ideas, feelings, desires, and interests Can be effective for building rapport with a client Closed-end questions Obtaining specific items of information Not helpful for developing rapport Leading questions Closed-end questions that suggest the answer the counselor wants from the client Tend to be manipulative Not effective for developing a collaborative environment “Either/Or” questions and “Why” questions May appear to allow a client to speak openly, but they often have the opposite effect