My Key Takeaways from #AFCPE2025

I recently attended the 2025 Association for Financial Planning and Counseling Education (AFCPE) Symposium in Glendale, AZ.

Below are nuggets from sessions that I participated in:

 

Financial Health and Capability- There was a sharp decline in 2024 in Americans’ ability to make ends meet. The decrease was mainly driven by middle and upper income households. Not surprisingly, there was an improvement in knowledge about inflation, especially among younger adults. Less than half (46%) of U.S. adults have three months of expenses saved for emergencies.

 

Financial Conversations- Keynote speaker Riaz Meghji noted that “We are one conversation away from a different life.” In other words, interpersonal connections matter. He challenged attendees to recall a defining conversation that changed their life and to remember that if they say “yes” to something that costs money or time, they are also saying “no” to alternative options.

 

Hyperbolic Discounting- This is a cognitive shortcut (bias) where people attach more value to the present than the future, prefer smaller rewards now vs. a larger reward later, and tend to be impulsive. Hyperbolic discounting makes the future “feel cheaper” than it is and can be mitigated with precommitment strategies, goal partitioning, choice architecture, and future self exercises.

 

AI and Tax Preparation- A study of the use of ChatGPT in preparing income taxes was presented. Bottom line: it worked well for a very simple case but provided faulty responses with more complex situations. AI operators must tell AI to evaluate their eligibility for tax deductions and credits. When mistakes are caught and noted in follow-up prompts, AI output gets better.

 

Theory of Planned Behavior- This theory states that, when people have an intention to complete a task, action is more likely to take place. Research findings were presented that showed a positive relationship between attitude toward estate planning and intention to prepare an estate plan. An estimated $84 trillion of wealth is expected to be transferred by 2045.

 

Financial Cost of Dementia- 7.2 million Americans live with Alzheimer’s disease and the lifetime risk at age 45 is 20% of women and 10% of men. Financial mismanagement is an early indicator of cognitive decline (e.g., missed payments, double payments, spending extravagantly). AARP has a “dementia hub” with resources about interacting with people with dementia.

 

Financial Trauma- Financial trauma is any instance, observed or experienced, that has a negative impact on the way someone views, interacts with, or believes about money. Sources include generational influences, poverty, and systemic factors. Trauma is not a personal issue, but a societal one. No one makes bad financial decisions. They do the best that they can in the moment.

 

Grief to Growth- Widowed individuals each grieve in their own way. While there is no timetable for the grieving process, a speaker on a panel suggested grouping follow-up tasks following a death into three categories: Now (e.g., notifying Social Security), Soon (e.g., reviewing financial documents), and Later (e.g., making big decisions like selling assets and moving).

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.