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.
Sign up for Kiplinger’s Free E-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
-
Dow Jones Adds 463 Points as Rate-Cut Odds Rise: Stock Market TodaySome futures traders are now pricing in the possibility of a jumbo rate cut in September, which lifted stocks today.
-
Bullish IPO: Should You Buy BLSH Stock?Wall Street is buzzing about the Bullish IPO. The Peter Thiel-backed crypto company went public on August 13, and BLSH stock nearly doubled in its market debut.
-
Think Twice Before Co-Signing or Guaranteeing a Lease for Your KidsIf you co-sign or guarantee a lease for your kids, make sure you understand the risks.
-
How to Guard Against the New Generation of Fraud and Identity TheftIdentity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
12 Ways to Protect Yourself From Fraud and ScamsIdentity Theft Think you can spot the telltale signs of frauds and scams? Follow these 12 tips to stay safe from evolving threats and prevent others from falling victim.
-
Watch Out for These Travel Scams This SummerIdentity Theft These travel scams are easy to fall for and could wreck your summer. Take a moment to read up on the warning signs and simple ways to protect yourself.
-
You Need to Have This Financial Talk With Your SpouseWomen are poised to inherit significant wealth from their husbands. Here's how they can prepare for it.
-
Surprising Ways to Find Deals on Cars Despite TariffsLooking for a new car? Tariffs will make good deals harder to find, so use these expert tricks to get a lower purchase price and keep long-term costs down.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
Don't Miss Out on These Four Credit Card BenefitsCredit card benefits aren't always limited to cash back, points and miles. Check whether your existing card offers these valuable extras — or switch to one that does.
