Professionals from very different backgrounds can all claim to be financial therapists

Article content

If you ask Tara Unverzagt, everyone could benefit from financial therapy — including financial therapists.


Article content

“I realized when I was doing financial therapy that I’m money-avoidant, like I’m pushing money away,” says Unverzagt, founder of South Bay Financial Partners in California. “I undercharged because if I undercharge, then I’m never going to have that inequity that causes me anxiety.”

Unverzagt became certified as a financial therapist a few years ago, joining a growing field of professionals who seek to improve how people think and feel about money, especially when those emotions affect their life and relationships.

But in 2020, she realized she was keeping busy with her work to avoid her own money issues — not just undercharging clients but also the stress that comes with writing big checks. She ultimately decided she needed to see a financial therapist herself.


Article content

“To be honest, when we started, my original comment to him was, ‘I don’t have any money problems, it’s just not a worry, you know, it’s just not an issue,” says Unverzagt. “And he’s like, is that really true? Because that’s really not true for anybody.”

In fact, nearly one in three Canadians say financial stress is making them unwell, according to a report by FP Canada.

However, it’s important to know this emerging field is not regulated by law — which means anyone can call themselves a financial therapist. Before putting your finances or your mental health in anyone’s hands, you’ll want to do your research so you know what you’re paying for.

What is a financial therapist?

While the idea of mixing financial planning and psychology is not new, it wasn’t until 2010 that a formal association emerged to set standards and promote the field in the U.S.


Article content

Financial therapy has continued to grow as the stresses of the pandemic normalize conversations about both money problems and mental health. The widespread adoption of virtual meetings is also making it easier to seek help.

Today, the Financial Therapy Association (FTA) helps people connect with a wide range of professionals who seek to “promote a vision of financial therapy.” One might be a chartered financial analyst who has studied psychology, while another might be a licensed social worker with a master’s in financial planning.

Many bear the title of “certified financial therapist” (CFT-I), granted by the association itself. Applicants typically need a bachelor’s degree or higher in a relevant field — either finance or mental health. Alternatively, they can be a certified financial planner (CFP) or accredited financial counselor (AFC) with a bachelor’s degree in any field. They also need to complete 500 hours of related service and pass a two-hour exam.


Article content

Anyone looking for a financial therapist should pay close attention to the specific training a practitioner has received, says Julia Kramer, treasurer of the FTA and founder of financial coaching service Iaso Consulting, LLC.

Kramer, for example, has CFT-I, FBS (financial behavioural specialist) and CPA (chartered professional accountant) certifications and a graduate certificate in financial psychology and behavioral finance. But she’s not a licensed therapist.

“So people who have much deeper issues than what I’m comfortable with, I refer out,” says Kramer.

At the same time, Kramer would refer a client to a financial planner when the client is in a good headspace to tackle the tangible aspects of their finances, like saving money or handling insurance.


Article content

How to find a financial therapist

Proponents say all kinds of people can benefit from addressing their complicated emotions about their finances. You don’t have to be grappling with extreme debt and overspending; even underspending can be a harmful preoccupation.

“My grandparents were Depression-era,” Kramer says. “So I will have a heart attack if we do not use every drop of the Dawn liquid — like, we have to turn it over, we have to put water in it, because the world will end and we’ll go bankrupt if we waste money.”

She says she’s seen clients of various ages, genders and income brackets, though women and middle-aged people seem more likely to reach out.

“A person should seek out someone like me when money — it doesn’t matter, the dollar amount — when it is keeping them from sleeping, when they have continual conflicts with their family, when they can’t bring themselves to open their bills or they neurotically check their bank accounts,” Kramer says.


Article content

While financial therapy is rarely covered by insurance, Kramer says some therapists may be willing to work pro bono or at reduced rates. You can find professionals who charge a flat rate, charge by the hour or charge by commission or assets under management.

Prospective clients can check the association’s online directory, which you can filter by selecting specialty areas, practitioner qualifications and fee structures.

Kramer says the FTA doesn’t have a monopoly on good advice, but people should be careful when looking at other programs or “money coaches.”

“I would for sure do the homework. And anyone who promises that they can fix it in five easy lessons … I would be really suspect,” she says.

Unverzagt’s experience as a client has helped her in numerous ways, including in her own practice as a financial planner. She can better empathize with her clients when she recognizes her own blind spots in them.

Now, Unverzagt says, she has the tools to process her emotions instead of just coping with them. She still feels some anxiety over writing those big cheques — but the dollar value has to be bigger now. And she’s even raised her rates at her job.

“[I realized] you should pay me the value of my services. And if you don’t, you’re really ripping me off. And that’s not OK, too,” she says.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.



Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *