Moira Somers, Ph.D., is an author, coach, keynote speaker, assistant professor, and wealth psychologist. She spends her time helping advisors and families develop healthy financial attitudes and behaviors, focusing on sudden wealth, intergenerational wealth transfer, and raising financially responsible children.

On this week’s episode of Success That Lasts, Moira joins podcast host and Delap partner Jared Siegel to discuss financial literacy and the psychological impact of wealth, including the paradox of choice, more isn’t always better, the role of generosity, predictive ingredients to a fulfilling life, and more.

Tune in here, at delapcpa.com/podcast, or wherever you listen to podcasts:

Here are a few highlights from their insightful conversation:

  • As a clinical neuropsychologist by training, Moira Somers has observed that there is a profound interface between money and well-being; those who had better relationships to and with money seemed to have much better outcomes than those who didn’t.
  • Though we generally consider ourselves to be rational beings, data shows that we may have biological predispositions to making irrational decisions. Moira believes in embracing the totality of the human experience: acknowledging that sometimes we get diverted by things outside our best interest, have trouble persisting in things in our best interest, and are influenced by things outside our conscious awareness.
  • Jared explains loss aversion — a concept in behavioral finance that claims we are motivated to avoid things that have negative outcomes. You can frame conversations about what to avoid or what to pursue.
  • If someone is interested in exploring how they think about money from a fulfillment perspective, Moira suggests they track their finances for a period of time and see what it reveals. What do you trade your time and money for?
  • When it comes to socially responsible investing and aligning your wealth with your values, Moira says you should be intentional and surround yourself with support for those new financial behaviors.
  • Jared sees equilibrium as resource allocation rather than simply balance, and learning how to manage his time creates clarity around his financial decisions.
  • Moira says that those born into wealth often do not hear about the struggles and sacrifices that had to be made in order to acquire it.
  • Data shows that money can bring us sustainable happiness when we invest it in people and/or causes that matter to us.
  • Subsequent generations enhance family businesses by being more intentional about how to use the business to hold families together. Moira has observed that third and fourth generation business owners are holistically maintaining their businesses, instead of prioritizing profit above all else.
  • Financial literacy combines knowledge with emotional intelligence, and skills in delaying gratification.

Recommended Reads

Advice That Sticks by Moira Somers

Intentional Wealth by Courtney Pullen

The Coddling of the American Mind by Greg Lukianoff and Jonathan Haidt

Cross Cultures: How Global Families Negotiate Change Across Generations by James Grubman and Dennis Jaffe

When Helping Hurts by Steve Corbett and Brian Fikkert

Raising Financially Fit Kids by Joline Godfrey

Top 10 Financial Skills Needed for 21st Century Well-being by Moira Somers

The 3 Big Questions for a Frantic Family by Patrick Lencioni

Essentialism by Greg McKeown