A financial therapist helps with the feelings and patterns behind money: the anxiety that keeps you from opening statements, the spending you regret, the same fight with your partner every month. A financial planner helps with the decisions: how much to save, how to invest, when you can retire. If you know what to do but can’t bring yourself to do it, or money talk ends in conflict, a therapist is the better start. If you need answers with numbers in them, start with a planner. Financial therapy is unregulated in the US and nobody publishes typical prices. Fee-only planners who publish theirs charge a median $300 an hour or $2,000 for a one-time plan.
The short version
| Financial therapist | Financial planner | |
|---|---|---|
| Focus | Emotions, beliefs and habits around money | Decisions: saving, investing, taxes, retirement, insurance |
| Typical work | Regular sessions, alone or with a partner, exploring why money is hard | A written plan, projections and specific recommendations |
| Background | A licensed mental health professional, or a finance professional with therapy training | Finance, often with a CFP |
| Rules for the role | None specific: financial therapy is unregulated in the US | Registration to advise on investments for pay |
| Common credential | CFT-I, from the Financial Therapy Association | CFP, from CFP Board |
| Can advise on specific investments | Only if also registered | Yes, if registered |
| Typical price | Not published; set by each practitioner | A median $300 an hour, $2,000 per plan |
What a financial therapist does
Financial therapy sits between counseling and planning. The work is less about the spreadsheet and more about what happens when you look at it: why you avoid it, what you learned about money growing up, why you and a partner can’t agree. Sessions look a lot like counseling, and many practitioners see couples as well as individuals.
People come from two directions. Some are licensed mental health professionals, such as marriage and family therapists or clinical social workers, who’ve trained in finance. Their license comes from a state board. Others are financial professionals, planners or financial counselors, who’ve trained in therapy skills. They know the money side well, but the certificate doesn’t license them to practice therapy.
Neither background covers everything on its own. That’s the most useful thing to understand before you book.
What the CFT-I does and doesn’t tell you
The CFT-I is the main certificate in the field, issued by the Financial Therapy Association. To earn it, a candidate needs:
- A bachelor’s degree or higher in a financial or mental health field, or another degree plus the CFP or AFC
- 500 hours of experience, at least 250 of them working directly with clients
- The association’s training, a 1,000 to 1,500 word narrative, a reference letter and a 100-question exam
- A signed code of ethics that includes a fiduciary standard
Holders renew every year and complete 20 hours of continuing education every two years. Financial professionals who hold it must be able to meet the NAPFA and CFP Board definitions of fee-only, so a CFT-I planner shouldn’t be earning commissions.
What it doesn’t do: the association says “financial therapy as a specific area of practice is currently unregulated in the United States,” and that the designation “does not certify an individual or group’s practice of Financial Therapy, merely a basic competency level.” A CFT-I with a finance background isn’t a licensed counselor. One with a counseling background isn’t a registered investment adviser.
What each costs
Financial therapy. No regulator or association publishes typical prices. Practitioners set their own, usually per session, and the association’s directory doesn’t list them. Ask three things: the price per session, how many sessions people usually have, and whether a couples session costs more.
A fee-only planner. Among firms that publish prices:
- Hourly: a median $300, middle half $250 to $350. See what an hourly planner costs.
- A one-time plan: a median $2,000, middle half $845 to $3,600. See what a one-time plan costs.
- Ongoing planning: a median $4,500 a year, middle half $2,400 to $7,200.
A planner who bills by the hour can be a good pairing with a therapist: the therapist works on what’s getting in the way, and the planner gives you a short, concrete plan to act on.
When a financial therapist is the better choice
- You avoid money. Unopened mail, unchecked accounts, a plan you paid for and never read.
- Money causes conflict. You and a partner have the same argument, or can’t talk about it at all.
- Spending feels out of your control. You buy things you regret, or hide purchases. If gambling is part of it, the National Council on Problem Gambling runs a helpline at 1-800-MY-RESET (1-800-697-3738), by phone, text or chat.
- A change has shaken you. A death, a divorce or a windfall can bring grief, guilt or fear that makes clear decisions hard.
- The problem is anxiety or depression itself. Then you want someone licensed to treat it, whatever else they offer.
When a financial planner is the better choice
- You need numbers. Whether you can retire at 62, how to split assets in a divorce, what to do with an inheritance.
- You’re ready to act. You know what’s been holding you back and want a plan to follow.
- A deadline is coming. Benefits elections, a settlement, a required distribution. A planner can give you an answer in time.
Often the answer is both, in order or side by side. After a divorce or the death of a spouse, many people need someone to help them steady themselves and someone to work out the numbers. Our guides for divorce, widows and inheritance cover the planning side, and the public graph has divorce financial planners and family wealth transfer specialists.
How to check who you’re talking to
- Ask which background they come from. “Are you a licensed mental health professional, a financial professional, or both?” The answer tells you what they can and can’t do.
- For a therapist’s license, check with the licensing board in their state. The license type should match what they say they are.
- For the CFT-I, contact the Financial Therapy Association. Its directory is a start, not a vetting: the association says it “does not endorse or guarantee the services of those listed,” and those listed “have paid a fee to the Association.”
- For anyone giving financial advice, search the person on the SEC’s adviser search. If they recommend specific investments and aren’t registered, stop. For a CFP, use CFP Board’s verification tool.
- Ask how they’re paid. “Do you earn anything from products or services you recommend?” A fee-only planner and a therapist should both answer no. Read the Form CRS of any advisory firm.
If the issue is mostly habits rather than emotions, a coach may be enough: see financial coach vs financial planner. If the issue is debt you can’t pay, start with a credit counselor. And our guide to checking a financial advisor covers the rest of the record.