If the financial crisis of 2008–2009 had a silver lining, it was the launch of an important new profession: the financial therapist. At the time, many families realized financial worth wasn’t their only concern. They also wanted to build healthier, happier relationships with their wealth.
The Financial Therapy Association was founded accordingly in 2009, to “help people reach their financial goals by thoughtfully addressing financial challenges, while at the same time, attending to the emotional, psychological, behavioral, and relational hurdles.”
As you might expect, financial therapy shares common ground with other kinds of counseling. For example, we all sometimes feel a little blue. But we’re unlikely to rush to see a therapist unless a minor setback grows into a chronic disorder requiring professional treatment.
Similarly, we probably all sometimes wish we were on firmer financial footing. The wish may even turn into worry during stressful or transitional times. The more debilitating a financial anxiety becomes, the more value a financial therapist might add.
There is no single prescription for when financial therapy is in order, but here are five common “symptoms”:
For example: One or both of you change the subject whenever money matters arise, or you lie about it when asked.
For example: You’re tapping into existing or potential retirement savings to support your adult child’s daily living expenses.
Financial therapy can be appropriate whenever you may be struggling with deeply rooted financial anxieties.
If you have a financial advisor, we recommend starting with them. Most professional advisors can coach you through a number of emotional challenges related to ongoing money management. For example, here at Plancorp, there are many ways we assist our clients with their personal life decisions.
Your financial advisor should often be able to help you and your family work through these and similar challenges related to the emotions of money management. However, if you or your advisor feel you need someone with a deeper, more targeted understanding, a financial therapist might be a valuable addition to your team.
Whether you might benefit from financial advice, financial therapy, or a combination of both, know that you don’t need to struggle alone. There are people and resources available to help you or a loved one work through ongoing and targeted financial stress points. You can visit the Financial Therapy Association’s website at https://www.financialtherapyassociation.org/, or reach out to us for additional information. There’s nothing we love more than having the opportunity to help families clear the way toward a more enjoyable financial future!
Disclaimer: This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.