What Is Financial Therapy? Do You Need It?

Understanding Financial Therapy and Its Benefits

Money is a topic that often brings up strong emotions. Our financial behaviors are deeply connected to our past experiences and current mental states. For instance, you might find yourself spending more when you feel out of control in other areas of your life. Alternatively, you might avoid spending altogether due to past financial struggles. A financial therapist can help you navigate these emotional challenges and develop a healthier relationship with money.

Financial therapy is a growing field that combines emotional support with financial education. These professionals assist individuals in addressing their behaviors, beliefs, and past traumas related to money. To be considered a certified financial therapist, one must be recognized by the Financial Therapy Association (FTA). This requires a bachelor’s degree in a financial or mental health-related field, or a combination of an unrelated degree with relevant certifications such as Certified Financial Planner or Licensed Professional Counselor.

It's important to note that not all financial therapists are licensed mental health professionals or financial planners. Some may have both qualifications, while others may specialize in one area. If a financial therapist encounters an issue outside their expertise, they can refer clients to appropriate professionals like marriage counselors or family lawyers.

Common Issues Addressed by Financial Therapists

If you struggle with your relationship with money, you're not alone. A financial therapist can help you overcome various issues, including:

• Compulsive spending
• Gambling
• Money hoarding
• Money-related anxiety or shame
• Couples fighting over finances
• Fear of budgeting
• Guilt around success
• Avoiding bills and other financial responsibilities
• Fear of checking bank accounts
• Procrastination around debt
• Financial behaviors learned in childhood
• Financial trauma

Essentially, if thinking about or talking about money causes stress, a financial therapist can help you unpack those emotions and reframe your feelings about money for future financial success.

How Financial Therapy Differs from Traditional Therapy and Financial Advising

Financial therapy is distinct from traditional therapy and financial advising. Here's how they differ:

Financial Therapy - Focuses on the emotions surrounding money - Requires a Certified Financial Therapist designation - Helps people change their thoughts, feelings, and behaviors toward money

Traditional Therapy - Focuses on mental health - Requires a master’s degree in counseling-related fields - Helps people overcome mental health challenges like anxiety, depression, or PTSD

Financial Advising - Focuses on numbers and maximizing returns - Requires a bachelor’s degree in finance-related fields - Helps identify financial goals and create a plan to reach them

When to Consider Seeing a Financial Therapist

You might benefit from seeing a financial therapist if you experience panic or shame when thinking about money, are stuck in unhealthy money cycles, face relationship conflicts due to financial issues, or struggle with self-sabotage despite trying budgeting or advice. Learning unhealthy money habits from parents that affect your finances or difficulty saving for retirement due to uncertainty about the future are also signs that financial therapy could be beneficial.

Cost and Finding a Financial Therapist

The cost of working with a financial therapist varies depending on location and experience. Sessions typically range from $100 to $250, though some may offer sliding scales or group sessions. Health insurance usually doesn't cover financial therapy unless the provider is a licensed mental health clinician.

If the cost is prohibitive, consider nonprofit clinics offering low-income services, financial coaching as a lower-cost alternative, or newly qualified therapists who may charge less. To find a certified financial therapist, check the Financial Therapy Association’s directory. You can search by location, delivery method, professional orientation, and gender. Always verify credentials and watch for red flags like promises of quick fixes or pressure to buy financial products.

Is Financial Therapy Worth It?

If you've struggled emotionally with money, financial therapy might be transformative. Think of it as an investment in your mental and financial well-being. If unsure, try one session to see if it helps. After all, without trying, you'll never know if it could make a difference.

Protect what you've earned. With stocks fluctuating and inflation rising, many investors are turning to gold as a safeguard. You can invest through your IRA, and some companies offer up to $15,000 in free gold with qualifying accounts. Explore trusted gold IRA providers and take steps to secure your retirement.