Pretty much everyone has ~feelings~ about money, so it doesn’t surprise us that we’re hearing more about financial therapists lately. But if you’re wondering why someone might see a financial therapist (and how to find one), we got you.
FYI, the term “financial therapist” is not regulated in the U.S., but there are a few certifications that give people a broader education on the intersection of money and mental health. Some certifications you’ll see: a certified financial therapist (CFT), a certified financial social worker (CFSW), and an accredited financial counselor (AFC). These certifications are available to both financial pros and mental health pros, so just keep in mind that not everyone who calls themselves a financial therapist is actually a licensed therapist too.
Whether you opt for a financial therapist with or without a mental health license will depend on what you want to get into with them. For example, a mental health professional who’s a certified financial therapist will most likely go deeper into how money impacts your day-to-day life, your relationships, and your emotional well-being. They can also diagnose and treat mental health conditions potentially linked to your financial stress—and bill insurance for that treatment. They’re not going to move your money around like a financial planner, but they can give you education and resources to help you make decisions, notes financial therapist Aja Evans, LMHC, CFSW, president of the Financial Therapy Association board.
On the other hand, a financial planner who’s a certified financial therapist can usually get more specific and hands-on with their financial advice. They may better understand how people feel about, or act a certain way with, money compared to a “regular” financial planner. However, they can’t diagnose and treat mental health conditions like a therapist.
It’s a bit complicated, and the field of financial therapy overall is still developing, but a good place to start if you’re looking for support is the Financial Therapy Association’s database. For the purposes of this article, we spoke with licensed mental health professionals who are also financial therapists to hear more about how they help out their clients.
Signs you could use a financial therapist
Again, a financial therapist with a mental health background won’t actually move your money around like a financial advisor. But they can offer support that might inform your financial decisions and help you navigate money problems, while also helping you unpack the emotions associated with those things. If you’re dealing with a specific money issue or just general weirdness around the topic, strap in. Here are common problems financial therapists help with.
1. Your financial anxiety won’t quit.
Because we depend on money to…you know…live, it’s a reasonable thing to worry about. But whether you’re in a legit financial bind or you’re often spiraling about what would happen if you lost your job or got into an accident, ruminating over money issues (real or hypothetical) is a time and energy suck.
A financial therapist can help you think more rationally by separating what you can and can’t control, says certified financial therapist Megan McCoy, PhD, LMFT, AFC. This makes it easier to let go of the hypotheticals. For instance, you can’t necessarily prevent layoffs or accidents. But, you can make a monthly budget and ask for a promotion/raise, says Dr. McCoy, also an assistant professor of personal financial planning at Kansas State University.
2. You find it hard to set boundaries with other people.
Sometimes it’s uncomfortable to tell your mom you can’t help with her car loan or tell your friend you’re sitting out their bachelor party because money is tight. You might feel like you’re letting them down—even though you need to set boundaries for your bank account’s sake, says Evans, author of Feel Good Finance. A financial therapist can help you deal with the guilt and discomfort, plus come up with scripts for what to say, she notes.
A financial therapist can also help you establish limits to set with yourself when you’re struggling financially but want to be there for your loved ones. Maybe go to a pal’s birthday dinner, then opt out of drinks afterward. Maybe give yourself a $300 maximum for how much you can spend on family or friends per month, says Evans.
3. You overspend to feel good.
Sometimes your money’s stretched thin because you have student loans, you got laid off, your landlord raised your rent…whatever it is. But, outside of that, you might be the problem if you're spending more than you can afford to cope with or avoid uncomfortable emotions.
A financial therapist can identify the emotional causes of why you spend so much. Then, they can give you more sustainable (and cheaper) coping skills that also encourage you to feel what you’re feeling.
For example, you might swipe your credit card to feel better when you’re sad or stressed after a bad workday. This can temporarily lift your mood and give you something to look forward to, says Dr. McCoy. But, instead of getting another pair of chunky sneakers, you can take a refreshing walk outside, write about your thoughts, or vent in your group chat, she says.
Also, you might shell out gifts because you want other people to like you. This can stem from your own insecurity—you don’t think you, as a person, are worthy of love otherwise, says Dr. McCoy. Instead of sending your friend an expensive post-breakup care package, you can give them a call when they need you. “If you feel lovable for other reasons than just spending money on friends, you won't feel the urge to buy their friendship because you know you have worth outside of money,” Dr. McCoy explains.
BTW, if your overspending seems to be falling into addiction territory—like gambling or shopping addiction—a more specialized mental health professional (who may or may not be a financial therapist) is worth seeing, says Evans.
4. You’re scared to use your money even if you can.
It’s one thing to not go on a vacation or buy a new car if you can’t afford it. But some people—especially those with a scarcity mindset around money—still won’t invest, do things they enjoy, or fix broken things in their home. They’re very anxious about struggling with money, so they hold onto it, explains clinical psychologist and certified financial therapist Traci Williams, PsyD.
In those instances, a financial therapist may encourage you to reality-test your concerns (you’re actually financially stable, not struggling) or just reframe them to be more optimistic and less limiting (you can learn how to make progress financially), says Dr. Williams. A financial therapist can also enable you to manage symptoms of anxiety when thinking about a big purchase, she adds.
Then, once you shift your money mindset, a financial therapist can help you get out of your comfort zone to spend that money, Dr. Williams says. Go on that trip! Finally get a new dishwasher! Look at your stock options! And, if dropping cash on a large purchase is too much, you can work your way up to it, says Dr. McCoy.
5. You and your partner can’t agree on money stuff.
Maybe you’re more likely to stockpile checks you get from overtime shifts, while your partner would rather spend them on a dining room table. When you can’t seem to find common ground—when one of you is a saver and the other’s a spender—a financial therapist can assist.
They might talk to you and your partner about your experiences with money growing up and how that influences your spending or saving habits now, Dr. Williams says. Financial therapists may also help you communicate better and make shared money goals, she adds.
Then, if you want to establish a blueprint for how to save, invest, etc., Dr. Williams would usually refer you out to a financial planner.
6. Or you’re merging finances.
If you’ve only been responsible for your own money for a while, it can feel intimidating when you and a partner want to combine your finances. According to Evans, a financial therapist can usually go over your options—like having a joint bank account, having separate accounts, or both. You can also discuss what splitting costs looks like and what you, as a family and as individuals, would need in your savings to feel comfortable, she says.
When you’re having money talks like this, “when you start getting financially naked and honest with your partner,” there’s a slew of different emotions, says Evans. You might feel insecure about your salary, how little finance terminology you know, or what you spend your money on. Or you might feel scared to deviate from how your parents split up finances, Evans says. Disagreements may happen for those reasons, so a financial therapist can guide you through those too.
7. Financial infidelity’s going on.
If your partner lies about how much they make or spend—or if you have been lying about that stuff—this is what Dr. McCoy calls financial infidelity. Seeing a financial therapist separately or together can help you unpack why it’s happening. Perhaps there’s shame around what you’re spending money on. Maybe you’re embarrassed that you’re not making enough or you’re overspending.
Once you’ve discussed the “why,” a financial therapist can help someone come clean to their partner if they haven’t already, says Dr. McCoy. That therapist can also assist with rebuilding trust since lying about money may feel like a betrayal, she says.
8. You start making more money than usual and are overwhelmed.
You might be thinking, Boy, what a good problem to have! But Dr. Williams says that making more money than you’re used to can trigger a lot of complicated feelings. For example, say money was tight growing up. Now that you have the means, you might feel guilty and anxious if you want to support your family while also setting boundaries, she notes. A financial therapist can navigate those weird dynamics with you.
Plus, coming into more money than you're used to can feel surprisingly stressful, Dr. Williams notes. If you’re overwhelmed, a financial therapist can set the groundwork for figuring out a plan. You’ll talk about how much you’re hoping to save, any debts you have to pay off, and how to balance what you want and need to use the money for, Dr. Williams explains.
9. You’re navigating loss and money.
You might also be completely overwhelmed with managing finances after a divorce or after your partner or family member dies. A financial therapist can help you process that grief and deal with the finances in a healthy way, Dr. McCoy says.
Some people who get insurance or estate money after someone close to them dies will spend it all. The money usually reminds them of the loss and they want to get rid of it ASAP, explains Dr. McCoy. Or the opposite happens, where a person hoards the money because none of their purchases seem worthy of their loved one’s memory, she notes. A financial therapist can help you get out of your own way and empower you to save more or spend more, depending on the situation.
Wondermind does not provide medical advice, diagnosis, or treatment. Any information published on this website or by this brand is not intended as a replacement for medical advice. Always consult a qualified health or mental health professional with any questions or concerns about your mental health.
