What is Financial Therapy? A Way To a Healthier Relationship with Money
A certified financial therapist reveals how you can change you mindset.
In this interview, Dr. Traci Williams, a clinical psychologist and certified financial therapist, helps clients address complex issues involving their finances.
What is financial therapy?
Financial therapy helps people have a healthier relationship with their money by tailoring how they think about and behave with money. Common reasons to seek financial therapy include experiencing financial abuse, trauma or fraud; over- or under-spending; and recovery from debt, gambling addiction or divorce. People also often seek financial therapy for prenup guidance, estate planning, navigating wealth acquisition and to become empowered with financial decisions.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How did you get involved?
I have been a clinical psychologist for 10 years, but I was a stranger to the world of finance. I was never good at math. I thought I would never be good at money and wasn’t really interested in money. But during the pandemic, when people were making banana bread and candles, I was learning about money.
At the time, I had patients across the socioeconomic spectrum. I was helping people who were trying to figure out rent assistance and finding food for their families, as well as patients who were at their vacation homes. I realized that there is more to money than just dollars and cents, that there are human emotions behind money and what we do with money. In the course of learning more, I discovered the field of financial therapy. I became engrossed in it, did my studies and got certified.
What personal finance education did you receive?
To become a financial therapist, you have to have a background either in finance or in mental health. I am a psychologist first and foremost, so my course of study included the basics of personal finance, as well as financial planning and estate planning. The Financial Therapy Association has a self-study curriculum. They say it usually takes about six to nine months to prepare for the exam.
How does financial advising help people as they seek out mental health counseling?
It depends on what people show up for. For instance, if you have a couple who have recently received a windfall — an inheritance or whatever the case might be — they might seek out a financial therapist because they’re also dealing with whatever caused the windfall. If they have grief, they may need to process that, as well as the emotional consequences of having a windfall. A lot of people experience guilt around windfalls, so we talk through the emotional experience and offer guidance around what to do with their money.
Does financial therapy help people to make financial decisions that align with their values?
Yes, absolutely. We can definitely help you better understand what is important and how to use assets to make changes in your life.
What advice do you have for people who want to seek out a financial therapist?
Ensure that you’re working with someone who is certified and licensed in their area in addition to being a certified financial therapist — whether that is in the financial world or in the mental health world. And aside from financial therapists, there are similar professions that might be helpful. For instance, there are financial social workers and accredited financial counselors who do some similar things to what we do.
Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
Nasdaq Takes a Hit as the Tech Trade Falters: Stock Market TodayThe Dow Jones Industrial Average outperformed on strength in cyclical stocks.
-
$100 Fee Turning Away Visitors from National ParksDiscover how the new $100 fee will impact your experience visiting 11 of America's most popular parks.
-
Is Mechanical Breakdown Insurance Better Than an Extended Car Warranty?More insurers are starting to offer mechanical breakdown insurance to new car owners. What is it and should you buy it?
-
Tip: Ways to Track Your Credit Card RewardsHere are the best strategies and apps to help you stay current with your credit card rewards.
-
How We Manage Our Finances Together as a Married CoupleDouglas Boneparth, a certified financial planner, and his wife, Heather Boneparth, speak with Kiplinger about couples managing finances.
-
Where to Stash Cash as Yields Fall, According to AdvisersYour best options depend on how soon you'll need the money and your tolerance for risk.
-
7 Ways to Save Money on Almost EverythingHigh prices got you down? These strategies can help you reap deep discounts on everyday spending.
-
Premium Rewards Cards: More Perks, Higher FeesSome issuers are hiking the annual fee on their flagship luxury credit cards by hundreds of dollars. Are they still worth using?
-
3 Trips to Escape the Winter Doldrums, Including An Epic CruiseThree winter vacation ideas to suit different types of travelers.
-
How to Leave Different Amounts to Adult Children Without Causing a RiftHere’s how to leave different amounts to adult children without causing a family rift.
-
Your Guide to Buying Art OnlineFrom virtual galleries to social media platforms, the internet offers plenty of places to shop for paintings, sculptures and other artwork without breaking the bank.
