How Financial Therapy Can Lead to a Brighter Financial Future

Financial problems and trauma affect various aspects of a person’s life, including their emotional and mental well-being. When facing financial problems and heightened emotions, it can be even more challenging to manage your budget and spending. To help you understand the correlation between mental health and finances, learn more about the concept of financial therapy and discover ways to ease stress, navigate your health insurance for therapy, and end financial challenges and cycles.

Money issues often create emotional burden and stress. Finding ways to cope can help maintain your well-being as you work on getting your finances in order. One way to do this is through a growing field that combines financial planning and emotional support called financial therapy. It is a great option for individuals struggling with financial stress. Learn more about financial therapy — what it is and how you can apply it to your life — as well as the benefits it offers.

At a 2008 forum, educators, researchers, mental health practitioners and financial professionals collaborated and explored the concept of financial therapy. Eleven months later, the Financial Therapy Association (FTA) was officially recognized as a nonprofit organization. The FTA has since worked to share its vision of integrating cognitive, emotional, behavioral, relational and financial aspects of well-being.

There are different collaborative strategies between mental health and finance professionals which means the approaches to financial therapy can vary. There are also multiple reasons why an individual may need financial therapy. In most cases, it involves behavioral issues.

The relationship between money and emotions can be viewed as a cycle. When you’re experiencing financial problems, it can negatively impact your mental health. For instance, overwhelming debt can cause stress and depression. Almost a third or 31% of Americans with debt say they worry about it in general, while 25% say they stress about debt at bedtime.

Your mental health can also impact your finances. Negative mental health can lead to money issues and increased financial stress. In turn, you may end up making poor financial decisions that will further add to your anxiety.

There’s no denying that people have a relationship with money and their financial standing. Their emotions, feelings and thoughts can affect their financial decisions both negatively and positively. Failure to understand this relationship cycle, and not properly addressing financial weaknesses and problems, can be detrimental. This is where a financial therapist can help. The steps below provide an overview of what a financial therapist offers and can help you identify if you would benefit from consulting with one.

Financial therapy has two aspects — fiscal expertise and psychology. That means financial therapists go beyond giving money management advice. They aim to help you figure out why your financial experiences, upbringing, beliefs and relationships caused financial distress. In essence, a financial therapist is a combination of a financial advisor and a therapist.

Below is a table listing down key characteristics to help you better understand financial therapy vs. financial advice.

While everyone can benefit from financial therapy, there are those some who need it. These are individuals whose money issues interfere with their lives and relationships.

Some people don’t know what habits or approaches are good for their finances. Others may find it difficult to assess the best ways to manage, save and spend money. This is why financial counseling is important. Review the points below to see if you could benefit from financial therapy.

Like choosing any other service provider, shopping around is the best way to find the right financial therapist for you. The best option is someone you feel you can trust. They should make you feel understood and they should be able to relate to your situation. You can use the FTA’s database or ask your financial advisor if they know a financial therapist. You may also consider getting recommendations from family and friends.

Generally, there are no one-size-fits-all recommendations for financial therapists or if you would benefit from one. However, there are certain signs that can help you determine if financial therapy may be a good next step.

For some financial challenges, consulting a financial advisor may be enough. But for more serious issues, especially those affecting your mental health, a financial therapist may be your best option. Review the list below and see if any of the points resonate with you. If so, it may be time to seek financial therapy support.

Financial therapy practitioners are experts in their field and need to be properly trained to help clients. They also need to be well-versed and knowledgeable about the different aspects involved in financial therapy. Therefore, it can be difficult to find one.

The FTA has a database that can help you find a financial therapist in your area. You can also ask for recommendations from friends, family or your financial advisor.

Once you find potential practitioners, it’s advisable to ask them about their training and approach to financial therapy. A financial therapy practitioner should have a license or advanced degree in therapy, psychology or social work. Then, compare rates and review your notes about the practitioners you researched and spoke with to find a good match for your needs.

Financial counseling costs vary depending on the therapist, services provided and your location. How many sessions you need is a large contributing factor in determining how much financial therapy will cost.

That said, it can be expensive. Therapists typically charge per hour or session. Fortunately, there are ways to make it cheaper. Your health insurance may cover financial therapy which can help reduce cost. Another option is to find mental health assistance programs.

One way of reducing the cost of therapy is to use your health insurance. However, it depends on what your policy will cover, which can be found in the policy’s details, glossary and health terms. Typically, if your insurance is through an employer, services covered include psychotherapy, inpatient services, counseling and treatment for substance use disorder. Medicare policyholders can get coverage for certain mental health services like annual screening for depression.

Therapy can become a financial burden, especially if you need to go frequently. This tends to deter people from seeking mental health services. Depending on where you live, the rate can reach hundreds of dollars per session. That said, there are alternative ways to access affordable mental health care.

Being mindful with your money, including spending, is an important way to create a positive relationship with your finances. Having a mindful approach to financial management can help you cultivate better spending habits. You can start by being conscious about your inner dialogue. The following points offer some ways you can be more mindful with your finances.

There are many resources available to assist individuals interested in learning more about what financial therapy is, finding affordable therapy options and exploring what emotions or behaviors are contributing to financial challenges. MoneyGeek lists some of the most popular resources to help you get started.

• Financial Therapy Association: Learn more about financial therapy and what’s new in the field. You can also access a list of financial therapists.
• Good Therapy: Good Therapy is a resource tool to help you find a therapist near you. The organization also posts articles to help you better understand various conditions and treatments and offers a referral program that features practitioners.
• Medline Plus: Medline Plus, which is an online information service, is a good source for various information from U.S. government agencies, the National Institutes of Health, the National Library of Medicine and other health-related organizations. You can also check available financial assistance for different healthcare needs.
• Substance Abuse and Mental Health Services Administration: SAMHSA provides a Behavioral Health Treatment Locator. You can use this to find treatment facilities that help address substance use, addiction and mental health problems.
• The National Association of Free & Charitable Clinics: If you are in need of free or low-cost healthcare or are looking for support, you can use NAFC to search for the right clinic for you.
• American Psychoanalytic Association: This association provides low-fee clinics offering mental health services. It is a great resource for people who have limited finances.
• Mental Health America: Find support groups near you. Mental Health America can connect you with the best online support community based on your situation.
• MentalHealth.gov: MentalHealth.gov helps find resources for people struggling with mental health problems. You can find links to various programs and also learn more about mental health services.