Source: AUN News
According to her, the financial therapy programme teaches participants how to refer clients to specialists when a problem is outside their scope of knowledge. It’s common for financial planners to recommend a lawyer or an accountant to their customers when they are dealing with significant life events like marriage, divorce, career changes, retirement, or a death in the family. Why not a counsellor?
Additionally, larger financial organizations are interacting with their clientele more sentimentally.
According to Sonya Lutter, who oversees research and education at Herbers, a consultancy for financial advisory firms, and is a founding member of the Financial Therapy Association, financial planners have long known that clients have difficulty implementing goals even when they have been explicitly stated and demonstrated. “The personal, behavioral element has been lacking; a computer can’t just spit that out. Now that many large companies know this, they are beginning to include behavioral training in their operations.
Even the CFP Board, which regulates the certification procedure for certified financial planners, has embraced the “soft skills” of financial management. The board added a component titled “The Psychology of Financial Planning” to its educational programme in January. This portion discusses “principles of counselling” and “client and planner attitudes, values, and prejudices,” among other things.
According to Dr LuttDr, the psychology of financial planning, essentially financial therapy, must now be demonstrated by candidates for certification.
Perhaps it’s inevitable that therapy and money should mingle, given how anxious Americans are about their finances. It also reflects the increasing difficulties we face in our financial lives.
The majority of us no longer have secure employment for 30 years before retiring, according to Ms Clayman. “We juggle a variety of jobs and sources of income. We must organise and make plans for the future. Additionally, we require tools for combining those two intricate systems if we have a partner. That process, in my opinion, is more complex than any spreadsheet can capture.”
Analysis by: Advocacy Unified Network