A financial therapist helps individuals and couples address the emotional and psychological aspects of money management. By blending financial planning with therapeutic techniques, a financial therapist provides guidance on issues like money-related stress, financial behaviors and communication around finances. This specialized professional works to uncover the root causes of financial challenges, whether they stem from past experiences or current financial habits. With a focus on overall financial well-being, a financial therapist can help clients develop healthier relationships with money and achieve their financial goals.
If you want to develop a balanced relationship with money, a financial advisor could offer you personalized guidance and education to help you make smart financial decisions.
What Is a Financial Therapist?
A financial therapist specializes in helping clients work through emotional and psychological aspects of money. Their expertise often includes addressing deep-seated beliefs about money, understanding spending habits and improving financial communication, particularly in relationships.
Financial therapists work with individuals and couples to explore their relationship with money, uncovering how past experiences and emotions influence their current financial behaviors.
Common areas of focus include resolving money-related conflicts in relationships, managing financial anxiety and developing healthier financial habits.
Financial Therapy in Action
As an example of how financial therapy works, take the example of a couple who works with a financial therapist. One partner is focused on building a financial safety net, while the other enjoys spending on experiences and valuing the present moment. This difference in money management styles has led to frequent arguments, creating tension in their relationship.
A financial therapist would help them explore the underlying reasons for their behaviors—perhaps the first partner grew up in a household where money was tight, driving them to seek security, while the second partner might have grown up with a focus on enjoying life without worry.
Through sessions, the financial therapist guides the couple in understanding each other’s perspectives and developing a financial plan that respects both of their needs. The therapist might help them establish a balanced budget that allows for savings while setting aside money for experiences, which could help ease tension in their relationship and promote a healthier, more collaborative approach to their finances.
Common Areas of Focus
Financial therapists commonly focus on several key areas, including these five:
- Money-related stress: Financial therapists help clients identify and manage anxiety or stress linked to financial decisions, offering strategies to cope with financial pressures.
- Financial communication: Improving communication about money within relationships is a major focus, helping couples and families discuss finances openly and effectively.
- Spending and saving habits: A financial therapist works to understand and modify unhealthy financial behaviors, such as compulsive spending or excessive saving.
- Financial trauma: Addressing past financial experiences that may negatively impact current financial decisions, like job loss or debt, is another critical area.
- Financial values alignment: Financial therapists assist clients in aligning their financial decisions with their personal values and long-term goals, fostering a more meaningful and intentional approach to money management.
Who Can a Financial Therapist Help?
A financial therapist can help a wide range of individuals and couples dealing with financial stress, anxiety or conflict. They are particularly beneficial for those who struggle with money-related communication in relationships, whether it’s between partners, spouses or family members. Individuals facing significant financial decisions, such as buying a home or planning for retirement, may also benefit from the emotional support and guidance a financial therapist provides.
Additionally, people who have experienced financial trauma, such as job loss, bankruptcy or significant debt, can find healing through financial therapy. Those who find themselves stuck in unhealthy financial patterns—like compulsive spending or extreme frugality—can also benefit from working with a financial therapist to develop healthier financial habits and a more balanced relationship with money.
How to Find a Financial Therapist
Finding a financial therapist can start with a search through professional organizations like the Financial Therapy Association (FTA), which offers a directory of certified financial therapists. This ensures the therapist has met specific educational and ethical standards.
Another option for finding a financial therapist is to ask for referrals from financial advisors, therapists or trusted individuals who have had positive experiences with financial therapy. Online platforms that specialize in financial wellness may also provide listings or recommendations for financial therapists.
When looking for a financial therapist, it’s important to research and verify credentials, looking for professionals who hold certifications such as Certified Financial Therapist (CFT-I™) or similar designations. Additionally, scheduling an initial consultation can help determine if the therapist’s approach aligns with your needs, ensuring you feel comfortable discussing your financial concerns with them.
How to Become a Financial Therapist
Becoming a financial therapist requires a combination of education, specialized training and experience in both financial planning and mental health counseling.
Typically, aspiring financial therapists start with a degree in either finance, psychology or a related field. A background in financial planning, social work or counseling is essential, as financial therapists need to understand both the technical aspects of financial management and the emotional and psychological impacts of money.
After obtaining a degree, professionals often pursue advanced certifications, such as the CFT-I™ designation, offered by the Financial Therapy Association. This certification requires a mix of education and experience and involves passing a comprehensive exam that covers financial therapy concepts, ethics and techniques.
In addition to formal education and certification, aspiring financial therapists should gain practical experience in both financial planning and counseling. This might involve working as a financial advisor, therapist or counselor, where they can develop the skills needed to address clients’ emotional and financial needs.
Bottom Line
Financial therapy offers a blend of financial planning and emotional support, which could help individuals and couples address the often-overlooked psychological aspects of money management. Whether you’re dealing with financial stress, communication issues or unhealthy spending habits, a financial therapist can provide the guidance needed to develop a healthier relationship with money. By working with a skilled professional who understands both the financial and emotional dimensions of money, you can take meaningful steps toward achieving financial well-being and harmony in your personal and financial life.
Tips for Financial Planning
- A financial advisor can help you create a personalized financial plan based on your needs and goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- One of the core pillars of financial wellness is developing the ability to maintain a budget. If you need help managing creating a budget, SmartAsset’s free budget calculator can help you get a breakdown of expenses by category based on your income and location.
Photo credit: ©iStock.com/fizkes, ©iStock.com/Ridofranz, ©iStock.com/Anchiy