Many people experience anxiety, shame, and fear in his financial life. The causes of that situation may vary. It can be from pressures given by their family, friends, or their working environment. To help people to cope with that situation, we now have a relatively new profession named financial therapy.
What is financial therapy?
Financial therapy combines financial planning services and mental health treatment. Its clients will get the best of both financial and mental health after they use its services.
Financial therapists help their clients to process their underlying feeling about money. At the same time, they also help their clients to work out plans for retirements, savings, investments, and other goals.
There are two primary types of financial therapists. They are those who come from a counseling background and add financial competencies and those who come from a financial planning background and add counseling competencies.
Clients can pick the one that better fits their specific needs.
Money and emotions have been tied together since the beginning of time. But financial therapy as a practice is so new, it didn’t really start developing until 2008. While only in 2019 that financial therapists can get certified with the Financial Therapy Association (FTA). The certification ensures they are able to help clients with relationship disputes and disagreements, and depression related to finances.
Where do Money and emotions meet?
Many clients of financial therapist consistently bring up money worries and financial stress. That happens since according to a report from BlackRock, money is the number-one source of stress.
Everyone knows that they should save more and watch their spending. Yet, there is often a disconnect between what they know they “should” do and what they actually do.
Therefore, people need a financial therapist to continuously remind them of the importance of saving and how to deal with emotional breakdown every time their financial plan fail.
