Communication is an important aspect of every financial advisor’s job. We communicate lots of information: data, projections, and setting expectations.
But the best advisors don’t simply communicate information. They take time into considering how that information is shared, and understood by their audience.
Behavioral finance researchers have spent decades studying a phenomenon known as framing. It’s the principle that the way information is presented can dramatically influence the conclusions people draw, even when the underlying facts are identical.
If that sounds like a subtle distinction, it isn’t. Framing can change decisions involving healthcare, investing, politics, negotiations, relationships, and virtually every important conversation we have. The information hasn’t changed. Only the presentation has.
I’ve been coaching advisors for over 14 years on all things behavioral, and communication is a big part of that. In my experience, I’ve become convinced that framing is one of the most underappreciated communication skills we can develop. Clients rarely make decisions based solely on information. They make decisions based on how they interpret that information. Framing helps determine that interpretation.
Below are two examples that illustrate just how powerful framing can be. One comes from a conversation with my daughter. The other comes from a financial headline that tells two completely different stories depending on how it’s presented.
My Daughter’s Phone Call
Recently my 23-year-old daughter called looking for advice.
She and her husband had a disagreement over money. An expense she expected to cost one amount ended up costing considerably more. Neither of them had acted dishonestly. Neither had done anything wrong. They simply communicated differently.
My daughter likes specifics. She wants concrete numbers and clear expectations.
Her husband tends to communicate in broader estimates. He’ll often say something like, “It’ll probably cost around…” without worrying about being exact.
As she explained what happened, I realized the issue wasn’t really about money at all.
It was about communication. But as she was going to address her husband, I said, “Be careful how you bring this up. If you bring it up wrong, he could get defensive and think you are blaming him.” In other words I was teaching her about framing.
She could frame the conversation in a way that sounded like an accusation.
“Why didn’t you tell me it was going to cost this much?”
Or she could frame it around the actual issue.
“It seems we communicate differently about money. In order to avoid misunderstandings in the future, I think it would be wise to…”
Those are two very different conversations.
The first invites defensiveness.
The second invites understanding.
The objective wasn’t to prove someone wrong. It was to help each other communicate better going forward.
That evening we had our regular family Zoom call. They were sitting together, smiling, laughing, and seemed perfectly happy. I’m hopeful the conversation went well.
The facts never changed.
Only the frame.
The Same Thing Happens in Investing
A financial headline recently caught my attention.
It read:
“The bankruptcy rate has risen about 48% between 2022 and 2025.”
Standing alone, that’s unsettling.
Most readers immediately assume the economy is deteriorating. They picture businesses failing, consumers struggling, and financial conditions becoming increasingly fragile. For investors already worried about the next market decline, the conflict in the Middle East, inflation, or a possible recession, it’s one more piece of evidence that convinces them they should be doing something different with their investments.
But that wasn’t the complete headline.
It actually said:
“The bankruptcy rate has risen about 48% between 2022 and 2025, although it’s still below pre-pandemic levels.”
Suddenly the story feels different.
During the pandemic, government stimulus, forbearance programs, and other extraordinary measures pushed bankruptcies to unusually low levels. As those temporary conditions faded, bankruptcy filings naturally moved back toward more normal historical levels.
The increase was real.
But without the context, many readers would likely reach a conclusion that wasn’t.
Again, the facts didn’t change.
Only the frame.
This Is Where Advisors Create Enormous Value
Clients consume headlines all day long.
They see alarming statistics. Predictions about recessions. Warnings about inflation. Stories about market crashes.
Very little of that information is technically false.
But it is often incomplete.
By the time clients contacts us, they’re frequently reacting not to reality itself, but to the way reality was presented.
One of the most valuable things we do as advisors is help clients reframe what they’re seeing.
When markets decline, we remind clients that volatility has always been part of investing.
When a frightening statistic dominates the news cycle, we place it into historical context.
When clients become consumed by what might happen next, we redirect their attention to the parts of their financial lives they actually control.
We’re not changing the facts.
We’re changing the perspective through which those facts are viewed.
That may sound like a small distinction.
It isn’t.
Better framing leads to better thinking. Better thinking leads to better decisions. And better decisions, repeated consistently over time, can profoundly change financial outcomes.
The next time you’re preparing for an important client meeting, don’t just ask yourself:
“What do I need to say?”
Ask something even more important:
“How can I frame this so my client sees what really matters?”
Because sometimes changing the frame changes everything.
JAY
Learn About The Behavioral Finance Network