From the Executive Editor

Abstract

The Financial Planning Review (FPR) is entering its next phase of development. The Review is returning to an open-access publication format. Authors will no longer be required to pay article publication charges for their research to be read, and readers will no longer be required to pay subscription fees to read it. In truth, the shift to open access is returning to FPR's roots because the Review was originally launched as an open access journal in 2018 as is common for many new journal titles. The expectation at the time was that it would adopt a traditional subscription model as it matured. And mature, it did.

Two things became apparent in the interim. First, CFP Board of Standards became increasingly convinced that the journal's impact would be greater under an open-access model. CFP Board is committed to building this nascent profession in a way that serves financial planning clients and society at large, and an open-access model helps further that mission. Second, the publishing industry is shifting toward open-access models. Most journals are still retaining conventional subscription models, so FPR is in the minority, but the trend is clear.

Finally, it is only proper to recognize the commitment of CFP Board of Standards in this effort. Publishing and managing a top-quality peer-reviewed journal is resource intensive. In the absence of subscription revenue, the resources must come from somewhere. CFP Board has taken it upon themselves to step up to the plate for the benefit of the profession. We are indebted to their commitment to this vision. And, I am personally grateful for their support.

This combined issue primarily addresses the client, focusing on their financial decision-making, well-being, trust, and money attitudes. Sonya Lutter emphasizes the importance of using a systemic approach in financial planning. This approach considers how individuals' financial decisions are influenced by their experiences and the broader systems they are part of. Some of the key influences she identifies are interconnectedness, homeostasis, and differentiation of self, and she illustrates these ideas with a case study, showing how systemic thinking can lead to better client outcomes by addressing underlying issues and improving communication. It highlights the importance of financial planners adopting a holistic view that considers clients' broader life contexts and uses tools like genograms to understand family dynamics, ultimately leading to more effective and empathetic financial planning.

Edmund Khashadourian and Adele L. Harrison evaluate the Consumer Financial Protection Bureau's (CFPB) Financial Well-Being Scale by comparing it with household financial ratios. They develop a model called the Equilibrium Model of the Household (EMH) to categorize financial well-being into four stages: financially distressed, fragile, stable, and flourishing. The CFPB scale aligns well with these categories, supporting its validity, but also contains some noise in the CFPB data, suggesting the need for further refinement. Financial planners can therefore use both subjective measures like the CFPB scale and objective financial ratios to gain a comprehensive understanding of clients' financial well-being, leading to more tailored and effective advice.

Jason M. Pattit and Katherina G. Pattit investigate trust in various financial services providers, using data from 1697 U.S. consumers and find that trust levels vary significantly across provider types, with credit unions and community banks being the most trusted. As expected, trust is higher among customers than non-customers. Key drivers of trust include visible reputation for non-customers and shared values, interest protection, and personalized service for customers. They suggest financial planners should focus on building a strong reputation and providing personalized, value-aligned services to enhance trust among both potential and existing clients. More than a self-interested strategy, higher levels of trust are likely to lead to better client outcomes.

Joana Neto, Félix Neto, and Adrian Furnham examine money attitudes among Portuguese people using the New Money Attitudes Questionnaire (NMAQ). It identifies five factors: Achievement and Success, Power and Status, Mindful and Responsible, Saving Concerns, and Financial Literacy Worries. The study finds that men score higher in Power and Status, while women score higher in Mindful and Responsible. Lower education levels are associated with higher Power and Status and Financial Literacy Worries. Well-being and personality traits significantly influence money attitudes. So, financial planners should consider clients' education levels, well-being, and personality traits when advising on financial matters, as these factors significantly impact their attitudes toward money.

Rebecca Henderson, Jennifer Lehman, and Aman Sunder shift our focus to the financial planner. They explore the phenomenon of “Quiet Quitting” (QQ) among financial planners, where employees do the bare minimum to keep their jobs. They examine factors like job demands, burnout, engagement, satisfaction, and human capital. The findings reveal that lower job satisfaction, pursuit of work-life balance, and burnout are linked to QQ. Interestingly, although more women reported QQ, the factors influencing QQ did not significantly differ between genders. Financial planning firms might use these insights to focus on improving job satisfaction, promoting work-life balance, and addressing burnout to reduce the incidence of QQ among their employees.

A final note on what you can expect from the Financial Planning Review. In addition to returning to an open-access publication format, FPR (a digital publication since its inception) will move to a continuous publication format. Accepted articles will be published with their final citation information as they become ready rather than being withheld until enough articles with the appropriate criteria accumulate to fill it. This more timely publication model benefits readers and the profession. It also means, however, that issues will no longer be curated. Rather, they will be compiled automatically as articles become available, making these editorial introductions no longer possible. I will continue to work with and report to the editorial board on the future direction of the journal, find other ways to report to you, and look forward to hearing your thoughts through them or directly from you.

Thank you for supporting the Financial Planning Review.