Differentiating Financial Therapy within the Professional Landscape Flashcards
When was the Financial Therapy Forum held, and who attended?
The Financial Therapy Forum was held in 2008. It was attended by academics, financial professionals, and mental health professionals.
What was the central notion discussed at the 2008 Financial Therapy Forum?
The central notion was that finances, our relationships, and emotional lives are heavily intertwined.
What key events occurred shortly after the 2008 Financial Therapy Forum?
The Financial Therapy Association (FTA) was formed, and the Journal of Financial Therapy was created.
What is the mission of the Financial Therapy Association (FTA)?
The FTA’s mission is to:
* Unite professionals from multiple disciplinary backgrounds.
* Disseminate cutting-edge research, best practices, and financial therapy training as a way to enhance client quality of life.
* Shape relevant public policy and practice management & ethical standards within financial therapy.
What were some of the movements that developed alongside financial therapy?
Financial therapy was also founded alongside other movements like life planning, financial psychology, and financial-mental health.
What was a primary reason for the establishment of the FTA?
A primary reason was a lack of consistent and effective dialogue not only between financial and therapy practitioners but also between academics and practicing professionals.
What are the learning objectives for the video series on differentiating financial therapy?
Participants will be able to:
* Explore the history of financial therapy and the Financial Therapy Association.
* Identify collaborative & complementary disciplines to financial therapy.
* Define how financial therapy is different from other complementary disciplines/fields.
What is the broad categorization used for professionals trained and licensed to practice mental health therapy in this context?
Mental health is used as a broad way of categorizing these professionals.
Name some complementary disciplines within the mental health field.
Marriage and family therapists, psychologists, clinical social workers, professional counselors, and addiction counselors.
What is a general perspective of Marriage & Family Therapists (MFTs) regarding client issues?
“The client system needs fixing…”
What are Marriage & Family Therapists trained and licensed to do?
MFTs are “professionals trained in psychotherapy and family systems, and licensed to diagnose and treat mental and emotional disorders within the context of marriage, couples and family systems.”
What are some key takeaways about Marriage & Family Therapists (MFTs)?
Key takeaways include:
* Systemic-oriented; goes beyond the individual and attends to primary relationship networks.
* Work is often done with individuals.
* Have graduate-level education and training (Master’s or Ph.D.).
* Licensure can vary state to state in the U.S. – “LMFT” (Licensed Marriage and Family Therapist).
What is a general perspective of Psychologists regarding client issues?
“The client illness/diagnosis needs fixing…”
What are Psychologists trained to do?
Psychologists are trained to evaluate a person’s mental health using clinical interviews, as well as psychological evaluations and testing. They also may conduct psychotherapy.
What are some key takeaways about Psychologists?
Key takeaways include:
* Individual perspective, diagnostics-focused, and often an emphasis on brain, behavior, and cognition.
* Many areas of specialization beyond clinical or counseling psychology.
* Have a doctorate degree (Ph.D. or Psy.D.).
* Licensed by licensure boards in each state (in the US).
What is a general perspective of Social Workers regarding client issues?
“The client environment needs fixing…”
What do Social Workers help people with?
Social Workers help people meet both basic and complex life needs, which may include access to resources, mental health service provision, and more.
What are some key takeaways about Social Workers?
Key takeaways include:
* May work at multiple “levels” or systems – micro, mezzo, macro; focus on the individual and their environment.
* Reside in a wide variety of settings.
* Clinical Social Work (LCSW) is the mental health counseling branch.
* Have graduate-level education and training (Master’s or Ph.D.).
* Licensed by licensure boards in each state (in the US).
What is a general perspective of Professional Counselors regarding client issues?
“The client problem needs fixing…”
What are Professional Counselors trained to do?
Professional Counselors are mental health service providers who are trained to work with individuals, families, and groups in treating mental, behavioral, and emotional issues and disorders.
What are some key takeaways about Professional Counselors?
Key takeaways include:
* Education and training tends to be client-centered and less illness-centered. Also well-versed in addiction and substance use/abuse.
* Practice in a variety of settings.
* Have graduate-level education and training (Master’s or Ph.D.).
* Licensed by licensure boards in each state (in the US), and may also be called “licensed clinical professional counselors” or “licensed mental health counselors”.
What are Addiction Counselors trained to do?
Addiction Counselors are professionals who are trained to work with individuals, families, and groups in managing and treating substance use and addiction issues, as well as other addictions like gambling or food-related disorders.
What are some key takeaways about Addiction Counselors?
Key takeaways include:
* May work in a variety of settings.
* There are both certifications and licensure in addiction counseling.
* May have graduate-level education and training, but it is not a requirement in all states.
How do Psychiatrists differ from therapists and psychologists?
Psychiatrists are medical doctors (M.D.) and can prescribe psychotropic medications. They may also practice psychotherapy.
What is involved in Financial Counseling?
Financial Counseling is a collaborative process that assists clients in identifying goals and solutions to financial problems. It can help with remedial issues like budgeting and debt management, as well as proactive financial decision-making and education.
What are some key takeaways about Financial Counseling?
Key takeaways include:
* Helpful with remedial financial issues and proactive financial decision-making.
* Do not provide investment advice or sell products.
* Meant to be shorter-term, but may extend longer.
* Certification: Accredited Financial Counselor (AFC®) governed by AFCPE®.
What is Financial Coaching?
Financial Coaching is a collaborative, client-centered process that supports an individual’s financial progress and wellness using skills and techniques that facilitate lasting financial behavior change.
What are some key takeaways about Financial Coaching?
Key takeaways include:
* Mainly present- and future-oriented, rarely looks into past issues.
* Emphasis on equality and partnership, rather than an expert stance.
* Not intended for those in acute or serious financial or emotional hardship.
* May be short-term or longer-term.
* Certification: Financial Fitness Coach (FFC™) delivered by AFCPE & Sage Financial Solutions.
What is Financial Planning?
Financial Planning is a multi-step process focused on helping clients realize their financial goals and objectives through developing a financial plan, often covering areas like investments, cash flow, retirement, insurance, tax, and estate planning.
What are some key takeaways about Financial Planning?
Key takeaways include:
* Typically future-oriented (long-term goals), but may also assist with shorter-term objectives.
* The term “financial planner” can be used by almost anyone, so due diligence is necessary.
* Certification: Certified Financial Planner (CFP®) is considered most rigorous; other designations include CFA & ChFC.
What is Financial Life Planning?
Financial Life Planning is a process that examines “the human side of financial planning,” focusing on an individual’s “deepest and most profound” goals.
What are some key takeaways about Financial Life Planning?
Key takeaways include:
* An integrated process with traditional Financial Planning.
* Must be a Financial Planner or Financial Coach to practice.
* Enhances the practice of financial planning, not necessarily a new field.
* Certification: Registered Life Planner® (RLP®) conferred by the Kinder Institute of Life Planning, involving training and mentorship, but no exam.
What is Financial/Wealth Psychology?
Financial Psychology is the study of beliefs about money that influence our financial spending and behaviors. It may focus on identifying and ‘curing’ financial maladies or adapting individuals’ money beliefs through psychological interventions.
What are some key takeaways about Financial/Wealth Psychology?
Key takeaways include:
* Guided by the human behavior principles of psychology & the medical model; centered on the individual experience.
* Sometimes referred to as “wealth psychologist”.
* Financial psychologists typically have a background & license in mental health, but certification may include financial services professionals.
* Certification: Certified Financial Behavior Specialist (FBS®) conferred by the Financial Psychology Institute™, involving coursework but no exam or financial training.
How does the Financial Therapy Association define a Financial Therapist?
Financial Therapists help clients think, feel, and behave differently with money to improve overall well-being through evidence-based practices and interventions that aim to resolve underlying issues limiting self-growth, happiness, and financial wellness.
What are some key characteristics of Financial Therapy?
Financial therapy:
* Is a process.
* Is informed by both therapeutic and financial competencies.
* Helps people think, feel, and behave differently with money.
* Aims to improve overall well-being.
* Uses evidence-based practices and interventions.
* Addresses financial challenges while attending to emotional, psychological, behavioral, and relational hurdles.
What are some factors that set Financial Therapy apart from other complementary disciplines?
Financial Therapy is set apart by:
* Systems theory influence - considers broader context, relationship dynamics, and environments.
* Holistic view of client money issues.
* Being cross-disciplinary and collaborative.
* Addressing problems “between” as well as problems “within” (relational component).
* Evidence-based focus on models and practice.
* Research-practitioner emphasis.
* A rigorous three-level Certification program including education, examination, and mentorship.
* The development of a new profession, as well as supporting growth in home disciplines.
What are some identities a Financial Therapist might hold?
A Financial Therapist may have multiple professional and personal identities that exist alongside their identity as a financial therapist, such as Financial Planner, Marriage & Family Therapist, Gender, Age, SES, Race, Culture, Nationality, Education, Ability, Sexual Orientation, Religion/Spiritual/Secular. The degree to which one works from each identity can evolve.
When and how did financial therapy begin to take formal shape?
Financial therapy began to take formal shape with the Financial Therapy Forum in 2008.
What key insight brought people together at the initial Financial Therapy Forum?
The recognition that finances, relationships, and emotional lives are heavily intertwined.
What two important developments occurred shortly after the 2008 Financial Therapy Forum?
- The Financial Therapy Association (FTA) was officially formed
- The Journal of Financial Therapy was created
Why is it difficult to pinpoint exactly where and when financial therapy started?
Many professionals were already involved in developing their own versions of financial therapy practice before formal organization.
What are the three main components of the Financial Therapy Association’s mission?
- Unite professionals from multiple disciplinary backgrounds
- Disseminate cutting-edge research and best practices
- Shape relevant public policy and ethical standards
What were the hallmarks of FTA’s development?
Emphasis on cross-collaboration, evidence-based practices, and influencing important policy.
What primary issue was the FTA established to address?
The lack of consistent and effective dialogue between financial and therapy practitioners.
What were the outcomes of the disconnect between financial and therapy practitioners before FTA?
Few collaborations and a patchwork of practice techniques lacking evidence-based testing.
Name at least five complementary disciplines to financial therapy.
- Financial planners
- Financial counselors
- Financial coaches
- Marriage and family therapists
- Psychologists
What challenge does the diverse professional landscape create for financial therapy?
The overwhelming number of options for clients seeking help with financial complexities.
Why is it important for CFT-1 practitioners to understand the various domains of mental health therapy?
To effectively differentiate financial therapy and navigate referrals.
What confusion might consumers experience regarding the term ‘therapist’?
The term ‘therapist’ is unregulated, leading to confusion about qualifications.
How can you generally differentiate the perspectives of various mental health fields?
- Marriage & Family Therapists: client system needs fixing
- Psychologists: client illness needs fixing
- Social Workers: client environment needs fixing
- Professional Counselors: client problem needs fixing
What is a key misconception about Marriage and Family Therapists?
They often work with individuals, not just couples and families.
What distinguishes psychologists from other mental health professionals?
They emphasize brain, behavior, cognition, and can perform psychological evaluations.
What is clinical social work and how does it differ from other social work?
It’s the mental health counseling branch of social work requiring additional training.
What are the different system levels at which social workers may work?
- Micro system: individuals and families
- Meso system: neighborhoods and smaller groups
- Macro system: broader communities and systems
How do professional counselors differ from other mental health practitioners in their approach?
Their training is more client-centered and less illness-centered.
What’s the difference between a psychiatrist and other mental health practitioners?
Psychiatrists can prescribe medications, while others generally cannot.
What is financial counseling and what issues might it address?
A collaborative process assisting clients with cash flow planning, debt management, and proactive financial decision-making.
What is the primary certification for financial counseling and who governs it?
The Accredited Financial Counselor (AFC®) certification, governed by AFCPE®.
How does financial coaching differ from financial counseling?
Financial coaching focuses on money behavior and is present and future-oriented.
What is financial planning and what areas might it cover?
A multi-step process helping clients realize financial goals through various areas like cash flow management and retirement planning.
Why is due diligence necessary when working with someone who calls themselves a ‘financial planner’?
‘Financial planner’ can be used by anyone, including those without credentials.
What is financial life planning and how does it relate to traditional financial planning?
It focuses on an individual’s profound goals and integrates with traditional financial planning.
How does financial psychology differ from financial therapy?
Financial psychology focuses on individual behaviors, while financial therapy has a more relational approach.
What is the FTA’s definition of a financial therapist?
A financial therapist helps clients think, feel, and behave differently with money.
What are the key components in the definition of financial therapy?
A process informed by therapeutic and financial competencies to improve overall well-being.
What unique approach does financial therapy take to helping clients reach their financial goals?
It addresses financial challenges while considering emotional and relational hurdles.
How is financial therapy distinct from other related disciplines?
It has a systems theory influence and addresses both relational and individual problems.
How does professional identity develop for financial therapists?
At the intersection of their various professional and personal identities.
Why is professional identity not static for financial therapists?
It evolves with new learning and experiences.
What personal aspects can influence a financial therapist’s professional identity?
- Ability
- Gender
- Religion/spirituality
- Age
- Socioeconomic status
- Race
- Culture
- Nationality
- Education
- Sexual orientation
How might a CFT-1’s identity balance change over time?
The balance may shift as they gain confidence in their financial therapy identity.
What does it mean that financial therapy has a ‘systems theory influence’?
It considers broader contexts and relational dynamics impacting financial life.
How does financial therapy’s approach to problems differ from other disciplines?
It acknowledges relational components in financial challenges.
What two emphases reflect financial therapy’s commitment to being evidence-based?
- Evidence-based models and practices
- Researcher-practitioner focus
What makes financial therapy uniquely positioned as both a new profession and a supplement to other disciplines?
It supports growth in professionals’ home disciplines through its certification program.
A client comes to you as a CFT-1 and wants help with both their anxiety about finances and creating a retirement plan. How would you approach this situation?
Consider your home discipline and collaborate or refer as necessary.
How would you explain the difference between financial therapy and financial psychology to a potential client?
Financial psychology focuses on individual behaviors; financial therapy includes relational aspects.
A client is confused about whether they need a financial counselor, financial coach, or financial therapist. How would you help them understand the differences?
Explain the distinct focuses of each role regarding financial issues.
As a CFT-1 practitioner coming from a financial planning background, how would you respond to a client showing signs of significant emotional distress during financial discussions?
Acknowledge their distress and consider referring them to a mental health professional.
