Do You Need a Financial Therapist?
There is a growing drive to improve financial literacy in schools, but one of the barriers to financial stability or wealth growth may not have anything to do with knowledge. In fact, some money problems may be related to past trauma or childhood beliefs. These beliefs are the pioneers of Ph.D. financial psychology. Ted and Brad Klontz call ” money scenarios ” – they can undermine your financial health. Fortunately, you can solve these problems by working with a financial therapist.
What is financial therapy?
Dr. Preston Cherry, board certified financial planner and founder and president of Concurrent Financial Planning , says financial therapy combines financial counseling with psychoanalysis. He says it could be a way to uncover emotional or behavioral barriers to your financial well-being.
“Financial therapy is a process that needs to be handled,” says Cherry, who also sits on the board of directors of theFinancial Therapy Association. He says that a financial therapist can help you understand your behavior, and once you learn to handle it, it will be easier for you to achieve future wealth.
Financial therapy has been around since the 1990s, but until recently anyone could call themselves a financial therapist. The Financial Therapy Association works to bring together professionals from a variety of disciplines, including psychotherapists, certified financial planners, social workers, and family counselors. One of the goals is to develop advanced financial therapies with a professional appointment – a certified financial therapist .
While being a certified financial therapist is not a clinical license, Cherry says it represents competence in both financial and psychological areas to achieve client goals.
How to know if you need a financial therapist
When you don’t understand your relationship with money, it can be difficult to combat some of your addictions. For example, you may struggle with overspending, or being overly stingy may negatively impact your family’s quality of life.
You may recognize this destructive behavior with money, but you still cannot change anything. Cherry sums it up like this: “You want to achieve more, but you don’t seem to be able to do it.” Financial therapy can offer you the breakthrough you are looking for.
Where to find a financial therapist
Cherry says you can find a financial therapist through the Financial Therapy Association. You can use the organization’s website to find someone in your area or a virtual practitioner. The website also allows you to see the profiles of each professional, including their education, licenses, typical client profile, payment structure, and more. Regardless of who you choose to work with, Cherry says you’ll have a better chance of seeing progress if you approach leadership with an open mind. “Financial therapy takes courage, vulnerability and trust in the process,” he says.