Financial Therapy Improving Money Relationships
Financial Therapy Improving Money Relationships
Financial Therapy: Addressing Complex Issues Involving Finances
In this interview, Dr. Traci Williams, a clinical psychologist and certified financial therapist, sheds light on the field of financial therapy and how it helps individuals address complex issues involving their finances. With a combination of expertise in both psychology and finance, Dr. Williams offers unique insights into the emotional and behavioral aspects of money management.
The Concept of Financial Therapy
Financial therapy, as Dr. Williams explains, is about helping individuals develop a healthier relationship with money. It involves tailoring how people think about and behave with money to empower them to make positive financial decisions. The motivations for seeking financial therapy can vary widely, from recovering from financial abuse or trauma to dealing with issues like overspending, debt, gambling addiction, divorce, and navigating wealth acquisition.
Individuals may also benefit from financial therapy when seeking guidance on prenuptial agreements, estate planning, or to simply gain a better understanding of personal finances and become more confident in managing money.
A Journey Into Financial Therapy
Dr. Williams initially had no background in finance and considered herself uninterested and inept when it came to money matters. However, during the pandemic, while others were baking banana bread and making candles, she found herself immersing in the world of finance. As a clinical psychologist, she had patients from a wide socioeconomic range who needed assistance with basic necessities like rent and food, as well as those dealing with luxury items and vacation homes.
Dr. Williams realized that money was not just about numbers, but also about the emotional impact it had on people’s lives. This realization led her to discover the field of financial therapy, inspiring her to pursue studies and ultimately become a certified financial therapist.
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The Education of a Financial Therapist
To become a financial therapist, one must have a background either in finance or in mental health. As a psychologist, Dr. Williams had to learn the basics of personal finance, financial planning, and estate planning. The Financial Therapy Association offers a self-study curriculum that typically takes around six to nine months to complete before taking the certification exam.
The Intersection of Financial Advising and Mental Health
The synergy between financial advising and mental health becomes evident when individuals seek out financial therapy alongside mental health counseling. For example, if a couple suddenly receives a windfall, they may seek a financial therapist to help them navigate the emotional consequences that come with newfound wealth. Guilt and grief are common emotions associated with windfalls, and financial therapists guide individuals through these emotions while providing advice on managing their newfound wealth.
Aligning Financial Decisions with Values
One of the key benefits of financial therapy is the ability to make financial decisions that align with one’s values. Financial therapists can assist individuals in gaining a deeper understanding of what is truly important to them and how to use their assets to enact meaningful changes in their lives. By providing guidance, financial therapists empower individuals to make financial choices that resonate with their personal values.
Seeking a Financial Therapist
When considering financial therapy, it is crucial to work with a certified and licensed professional who has expertise in both finance and mental health. Financial therapists, along with other related professions such as financial social workers and accredited financial counselors, offer similar services to help individuals navigate their financial lives.
In conclusion, financial therapy is a holistic approach to addressing the emotional and psychological aspects of money management. By combining the expertise of psychology and finance, financial therapists like Dr. Traci Williams empower individuals to develop healthier relationships with money, make informed financial decisions, and align their financial choices with their values.
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Note: This article was originally published in ANBLE’s Personal Finance Magazine, a monthly source of trustworthy advice and guidance on personal finance.