Financial issues can have a significant impact on a person’s life and psychological health. Job losses can be devastating, and low income can contribute to anxiety and depression. 38 percent of divorced couples report that financial problems were at least one cause.
With all this in mind, financial therapy is a relatively recent, specialized type of therapy that combines psychotherapy and financial counseling. The idea is to help individuals and couples improve their financial well-being by addressing many underlying issues related to money.
What does financial therapy involve?
Financial therapy sessions may focus on issues such as:
- Understanding factors that affect a person’s approach to finances
- Resolving anxiety related to money, such as unemployment or debt
- Helping couples communicate and resolve conflicts related to finances
- Navigating significant life changes, such as job loss, retirement, divorce, or parenthood
- Addressing unhealthy financial behaviors, such as overspending or hoarding
- Setting realistic financial goals
Financial therapists help their clients understand the mentality behind their financial behavior and beliefs. The therapist may use a variety of techniques, such as cognitive behavioral therapy or mindfulness.
Financial therapists may partner with financial professionals, such as accountants, financial planners, or attorneys. This helps them provide more holistic solutions to their clients.
How does someone become a financial therapist?
To become a financial therapist, a person must first complete the steps required to become a therapist in general. This varies by state, but usually starts with a Master’s degree and licensure as a Social Worker, Counselor, or a Marriage and Family Therapist, or a doctorate in psychology.
Most financial therapists have a Bachelor’s degree in psychology or finance. However, no specific Bachelor’s degree is necessary if the graduate-level requirements to become a psychotherapist are met.
After completing those prerequisites, a professional can then obtain further training or certification in Financial Social Work or Financial Therapy. This usually involves further education, either online or in-person, as well as completing clinical hours and an examination.
The Financial Therapy Association (FTA) is one source of valuable information about a career in financial therapy, including becoming a Certified Financial Therapist-ITM (CFT-I™). To obtain this certification, professionals must complete requirements in financial planning and counseling, as well as therapeutic competencies. The FTA also has its own Standards of Practice and a Code of Ethics that CFT-I applicants must follow.
However, there are a variety of certifications and pathways to becoming a professional financial therapist. For example, the University of Maryland School of Social Work focuses especially on the intersection between social justice and finances. The Kansas State University Financial Therapy Graduate Certificate program is completely online, offering a more flexible option for therapists in any location.
Income for financial therapists is comparable to other counselors and therapists. Salaries can vary, depending on experience, location, clientele, and area of focus.
Financial therapy can help individuals and couples form a healthier relationship with their finances and improve their well-being. This career path may be an opportunity for therapists looking to help clients in an important, but often overlooked area of mental health.
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