Navigating financial conversations together with Dr. Megan McCoy

What we discussed

In this episode of the Love and other assets podcast, Emily Luk welcomes Dr. Megan McCoy. Megan McCoy, Ph.D., LMFT, AFC®, CFT-I™, works in the Financial Planning Department in the College of Health and Human Sciences at Kansas State University where she serves as the program director for the Financial Planning Master's Program. She is a licensed Marriage and Family Therapist, an Accredited Financial Counselor®, and a Certified Financial Therapist-I™. She discusses financial therapy, a field that blends financial planning and mental health, aiming to address the intersection between money and overall well-being. Dr. McCoy shares personal anecdotes about her own journey with money, explaining how her avoidance of finances stemmed from a childhood desire to "save the world" and a belief that making money and saving the world were incompatible. She highlights how individual and couples' beliefs about money often stem from their childhood experiences, emphasizing the need to acknowledge and understand those deeply ingrained beliefs.

The conversation delves into common challenges couples face in navigating financial conversations, including polarization, over and under functioning, and differing spending habits. Dr. McCoy offers practical tips for addressing these challenges, suggesting open communication, understanding individual motivations, and using tools like "I statements". She also stresses the importance of recognizing and celebrating each partner's contributions, even those that may not be immediately visible. The conversation covers the significance of goal setting and the power of breaking down large goals into smaller, achievable steps. She recommends utilizing mental accounting, separating financial goals into distinct buckets, and focusing on experiences over material possessions. Finally, Dr. McCoy encourages listeners to embrace "boring investing" strategies for long-term financial security and reminds them that navigating financial challenges is a journey of growth and learning.

What we discussed

1. Understanding Money Beliefs: Dr. McCoy highlights how personal and couple's beliefs about money are often deeply rooted in childhood experiences and family dynamics. Recognizing and unpacking these beliefs is crucial for healthier financial management.

   
   

2. Navigating Financial Conversations: The episode emphasizes the importance of open communication and establishing ground rules for couples when discussing finances. This includes respecting differences, avoiding blame, and focusing on solutions.

   
   

3. Addressing Polarization and Role Dynamics: Dr. McCoy discusses how couples can fall into polarized roles, such as the "over-functioner" and the "under-functioner," when it comes to money. She encourages conscious awareness of these patterns and finding ways to share financial responsibilities more equitably.

   
   

4. The Importance of Goal Setting and Prioritization: The conversation explores the significance of both individual and shared financial goals. Dr. McCoy suggests breaking down large goals into smaller steps, utilizing mental accounting to manage resources, and understanding the motivations behind each individual's goals.

   
   

5. Avoiding Financial Anxiety and Embracing Long-Term Investing: The episode addresses the common fear of investing, particularly after experiencing losses. Dr. McCoy advocates for a long-term, diversified investment strategy and encourages listeners to embrace the power of consistent saving and investing.

   
   

Listen to the full episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Brought to you by Plenty. Plenty is a wealth platform helping modern couples invest and plan for their future together. We bring the investment strategies and products of the wealthy to the everyday household.

SELECTED LINKS FROM THE EPISODE

Connect with Megan McCoy: Website |LinkedIn |

Connect with Emily Luke: Website | LinkedIn | Twitter

Plenty: Website | Instagram | Facebook | YouTube | Twitter

PEOPLE & RESOURCES MENTIONED

Channing Allen

John Gottman

Elizabeth Dunn

Warren Buffett

Financial Therapy Association

Fair Play" by Eve Rodsky

The Gottman Method

About Plenty

Plenty is a wealth management platform designed specifically for couples. We go beyond budgeting, making it simple to invest, save, and grow toward your future goals by unlocking access to the financial strategies of the wealthy. Ready to get started? Sign up for free today.

Enjoying the blog? Sign up for our newsletter for the latest news and expert advice about money, relationships, and everything in between. 

——

The information provided herein is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of strategies mentioned may not be suitable for everyone. Each investor should evaluate an investment strategy based on their unique circumstances before making any investment decisions.

Investing involves risk, including risk of loss. Past performance may not be indicative of future results. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. We recommend that you consult a tax professional before taking action.

Plenty does not provide legal or tax advice. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic, and geo-political conditions