Money is rarely just about numbers; it is deeply intertwined with our emotions, past experiences, and core beliefs. The stress of managing finances can impact your mental well-being, and conversely, your psychological state can dictate your financial behaviors. You might engage in compulsive spending during times of stress or hoard money due to a past hardship. A financial therapist can guide you in untangling these complex connections to foster a healthier, more secure relationship with money.
Understanding the Role of a Financial Therapist
Financial therapy is an evolving field that merges financial counseling with psychological and emotional support. A practitioner in this area helps you explore and understand the underlying behaviors, beliefs, and past events that shape your financial decisions. The goal is to address the root causes of financial stress, not just the symptoms.
To ensure a standard of care, professionals can seek certification from bodies like the Financial Therapy Association (FTA). A certified financial therapist typically holds a degree in a financial or mental health field. In some cases, a degree in another area may be supplemented with a recognized credential, such as a Certified Financial Planner (CFP) or Licensed Professional Counselor (LPC) designation, along with specialized training in financial therapy. It is important to recognize that while some may be dually licensed as both therapists and financial planners, not all are. A key part of their role is recognizing the limits of their expertise and referring clients to other specialists, such as marriage counselors or attorneys, when necessary.
Common Issues Addressed in Financial Therapy
If you find that your relationship with money is a source of distress, you are not alone. Financial therapists are equipped to help with a wide range of challenges. These can include destructive patterns like compulsive spending, gambling, or the opposite extreme of financial hoarding. They can assist with persistent money-related anxiety, shame, or guilt, even when it is associated with financial success.
Furthermore, a financial therapist can mediate financial conflicts between couples, help individuals overcome a fear of budgeting, or address the habit of avoiding bills and financial responsibilities. They delve into procrastination around debt, the financial habits learned in childhood, and even significant financial trauma, helping you reframe your perspective for future success.
Financial Therapy vs. Traditional Counseling and Advising
Navigating the world of professional help can be confusing. It is crucial to understand how financial therapy differs from traditional therapy and financial advising. A financial advisor focuses primarily on the numbers—your assets, investments, and returns—to help you build a plan to reach your monetary goals. A traditional therapist or counselor focuses on your broader mental health, addressing conditions like anxiety, depression, or PTSD, which may or may not be related to finances.
A financial therapist operates at the intersection of these two fields. Their specific focus is on your emotional and behavioral relationship with money. They work to change your thoughts and actions around your finances to improve your overall well-being.
When to Consider Seeking Help
The decision to seek help is a significant first step. You might find financial therapy beneficial if you experience panic or shame when you think about your finances or if you feel trapped in negative money cycles like chronic overspending or avoidance. If financial disagreements are causing conflict in your relationships, or if you consistently self-sabotage after trying traditional budgeting advice, a financial therapist could provide the necessary support. They can also help if you recognize that unhealthy money habits learned from your upbringing are impacting your life today or if you struggle to save for the future because it feels too abstract.
Also read: Why Financial Goal Setting Is Important
Navigating the Cost of Financial Therapy
The cost for a financial therapist can vary based on location and the professional’s experience, with sessions typically ranging from $100 to $250. It is important to note that health insurance generally does not cover financial therapy unless the provider is also a licensed mental health clinician. If the cost is a barrier, there are more affordable avenues to explore. Look for nonprofit organizations that may offer services on a sliding scale, inquire about financial coaching as a lower-cost alternative, or seek out newly qualified therapists who may offer lower introductory rates.
Ultimately, taking control of your financial life involves more than just spreadsheets and budgets; it requires understanding the “why” behind your decisions. Financial therapy provides a unique space to explore these motivations, heal past wounds, and build a foundation for lasting financial peace. Seeking this specialized help is not an admission of failure.
