Financial therapists are becoming increasingly popular, as people recognize the need to take control of their finances and seek emotional assistance in managing their money.
Unlike financial advisors and counsellors, a financial therapist can help people get to the ‘why’ of their finances, which can make so much of the difference.
If we can understand why we think about money the way we do, it can unlock the answers to what we may need to address emotionally to move forward.
According to the Financial Therapy Association, it’s
an organization comprised of professionals dedicated to the integration of cognitive, emotional, behavioral, relational, and financial aspects of well-being.
Financial therapy is unique in its arena in that combines both behavioral therapy and financial planning.
It focuses specifically on helping individuals and couples manage their financial situation, but also addresses:
- limiting beliefs around money
- generational financial trauma
- negative or conflicting feelings about money in general
In this article, we’ll look at who needs financial therapy, when to seek a financial therapist, and how to find one near you.
Who needs financial therapy?
Anyone who wants to take control of their finances and make better decisions about their money can benefit from financial therapy.
For example, someone who can benefit from a financial therapist can be someone who:
- grew up in a family with a generational trauma around money, and now they don’t know how to save or are afraid to make the same mistakes
- wants to increase their savings and make better financial investments, but is afraid to take the step because of past negative experiences with debt
- is close to retirement and needs help planning for the future, but feels guilt or fear about losing their identity when they aren’t working
A financial therapist can work with individuals, but they can also help couples work together to help get to the bottom of arguments or differing beliefs about their money, discuss and negotiate their spending habits, and plan for their future.
Financial therapy is also great for someone who has gone through a life-changing event, like a divorce or job loss. While of course you would want to make sure you get your finances in order, there are a lot of emotions to work through as well.
Shame, fear, disappointment – these are all normal reactions to a loss in your life that can hold you back both financially and emotionally.
A financial therapist can help someone going through these situations with guidance on emotionally adjusting to these new financial situations and making a new plan for their future.
In addition, other life-changing events like receiving an inheritance can benefit from a financial therapist. Sometimes, mixed emotions like guilt and pleasure come with receiving money from a loved one who passed.
You’ll want to know how best to use the money, but you also need help deciphering those feelings.
Generational Money Mindset: How Family History Shapes Your Financial Future
When should you see a financial therapist?
For any stage of your life, seeing a financial therapist can be beneficial.
A financial therapist can be a powerful tool for anyone who wants to better understand their behavior and mindset around money.
A good way to think about is this:
- If you need financial advice on what to do about your money, financial situation or goals, talk to a financial advisor
- If you are struggling with your feelings, beliefs and mindset around money and finances find a financial therapist
Even if you’re not going through a major moment in your life, having a financial therapist to talk to can help you work through any biases around money and how you use it and to create and stick with healthy spending habits, which can lead to long-term financial success.
In addition, they can give you support and guidance throughout your life, and working with them long-term can be beneficial when you do go through major life events.
Financial therapy near me
The Financial Therapy Association has an online directory in which you can filter the list to find one in your area.
To earn the CFT™ designation of Certified Financial Therapist-I (CFT-I), individuals must meet specific educational and experience requirements across the areas of:
- financial therapy,
- financial planning and financial counseling, and
- therapeutic competencies
Once you’ve found a list of therapists, it’s important to research them to make sure they will meet your needs.
Always look at this person’s experience with financial planning and ensure they are certified, financial therapists.
You also want to make sure this is something you would feel comfortable working with since you will have to be very honest and open to discussing your financial situation with them and take their advice.
A financial therapist should be able to offer planning around major financial topics, from:
- budgeting
- debt management
- retirement planning
Lastly, find a therapist that fits your budget. You want to make sure this support is financially feasible.
Final Thoughts
Financial therapy can be a powerful tool for anyone who wants to take control of their finances and make smarter decisions about their money.
It can help you get to the root of any issues or behaviors around money that you struggle with or feel is holding you back. If you’re ready to take control of your finances, a therapist can be a great resource.
By understanding who needs financial therapy, when to seek their help, and how to find and choose the right financial therapist, you will be able to get the financial and emotional support you need at any stage in your life.
Editor’s note: This article was originally published Dec 21, 2022 and has been updated to improve reader experience.
