How Do Financial Therapists Help Their Clients?

         Financial therapists have a toolbox filled with skills they can use to help their clients. In my last post, I shared about the formal education required to become a Certified Financial Therapist, which is a very comprehensive, intense process. Additionally, through life experiences and other educational avenues, therapists develop techniques and skills they then choose to use when serving their clients. It takes a broad knowledge base, as well as those skills to help others on their financial journey. No magic, just dedication and hard work. 

         Spoiler alert. That hard work is not just on the part of the financial therapist, but also on the part of you, the willing participant who is seeking these services. And because you are both a critical part of the process of therapy, you need to know that you’re choosing a qualified therapist (not just someone claiming to be). The only way for financial therapy to work is to be working with a skilled financial therapist. 

What Skills Should I Look for in a Financial Therapist?

         A competent and effective financial therapist comes to the table (work) with an extensive toolbox of knowledge, skills, and abilities to provide ethical care to their clients. It is not possible to be effective if they have a single perspective or only their own experience with money to refer to. You see, financial therapy is not a one-size-fits-all approach.

         Everyone has a unique set of emotions, financial goals, and desired outcomes from therapy, so one tool for everyone will not be effective. You may have to try several before finding the one that best works. This is why you should speak to the therapist and ask their approach to therapy and get to know them a little before committing to work together.

         Aside from the formal educational requirements, therapists will often have a set of self-imposed requirements. There is a wide range of information, training, and books available to add weight and value to their toolbox. Opportunities that provide the therapist with a better understanding of the psychology of money, poverty, and wealth from the emotional side to exploring the diverse challenges people may face in their financial lives. This knowledge and the skills obtained, all come together and are integrated into the work therapists do with their clients.

How to Decide Which Financial Therapist is Right For You

         You will find that financial therapy is a client-centered service. When you begin working with a therapist, you will begin by defining together the scope of services and what will be included in those services. What are your goals? Is there a current mental health issue that impacts your financial life? Are there specific financial goals you want to work towards? Does the therapist see specific areas where you should focus your work? All these factors help to create the plan and actions you need to move forward. As I said earlier, no magic fairy dust, just hard work.

         Typically, you will find the financial therapist will approach therapy from one of two positions that will stem from their professional background. If they come from a financial planning background, it is likely they will focus on your money. Questions such as, how you manage your money and what your financial goals are may be asked, and they may then use some counseling to help you to reach those financial goals.

         On the other hand, if they are approaching financial therapy from a mental health perspective, they will focus on your overall mental health, how you relate to and feel about money, and the impact it has on your financial problems. The therapist you choose to work with must understand your mental health situation. If you have an existing mental health diagnosis, seeking someone with a mental health therapy background is your best option.

         In either case, whether approached from a financial or mental health perspective, financial therapy will require you to reflect and discover what is, or is not, working. These are critical components to finding the connection, security, and joy that a healthy money relationship can provide you.

Why Should I Work with a Financial Therapist?

         There is no right or wrong reason to begin financial therapy. What I can say is this. If you struggle with finances... If you wonder what you can do to improve your financial future... If you want to make progress in your life and your finances and you are not getting there on your own... Have a look at financial therapy. There is no magic to this when it comes to fixing your finances. Find the right therapist for you, whether your focus is on the financial planning side of the aisle or the mental health side, and get to work. The rewards will come, the healing will change your life for the better, and your financial future will be brighter. 

       Would you like more 1 on 1 support? Then perhaps Therapy Informed Financial Planning is for the two of you. I invite you to schedule your free 30-minute discovery call today.

Wishing You Healthy Love and Money,

Ed Coambs

MBA, MA, MS, CFP®, CFT-I™, LMFT

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