A person's mental health and wellness can be strongly impacted not just by their current financial state, but by their attitude toward finances in general. When thoughts around spending and saving trigger stress and anxiety, a financial therapist can help uncover the causes, allowing their clients to develop a healthier long-term relationship with money.
Seventy-two percent of people say finances impact their mental health, according to research from financial wellness platform Brightplan. These
"Financial understanding and security is one of the most important factors of mental health," says Daniel Lee, the director of financial planning at BrightPlan. "Money doesn't solve all problems, but it is the biggest source of stress. Employees naturally look to their employers for things related to finance, so employers are in a great position to be the provider of financial wellness and literacy."
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BrightPlan's survey found that 88% of employees expect employers to offer tools for investing, 87% want financial education, and 84% would like access to a financial professional such as a planner, counselor, or therapist. These resources can add an additional level of mental health care within their benefits.
"A great comprehensive financial planner works from the assumption that a client will be able to hear their recommendations and implement them," says Ed Coambs, a certified financial therapist and founder of Healthy Love and Money. "When people struggle to implement [these] recommendations, there are underlying psychological and relational challenges that need to be worked through, and that is where a financial therapist can be helpful."
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CFTs explore a person's relationship and history with money, using open-ended questions and empathy to help them feel more comfortable and empowered, says Coambs.
With combined training in the fundamentals of
"Each season of life can be a sticking point that can be helped by financial therapy when people feel uncertain, scared, ashamed, hopeless, or at relational risk," he says. "A young family welcoming their first baby, a mid-career family where the meaning of life is shifting, a late career professional contending with not having saved enough — financial therapy and counseling can be helpful at any stage."
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While financial therapy is beneficial at any stage in adult life, Coambs notes that the process of aging can magnify the sense of financial insecurity. Clients typically meet with a financial therapist on a weekly or bi-weekly basis, with sessions continuing until issues are resolved.
By making employees aware that financial therapy is an option, or going as far as to offer it within their mental health coverage, employers are going beyond helping employees save for their futures.
"It communicates an awareness to employees that money can be a difficult topic to navigate, and at the same time it is part of the overall well-being picture," Coambs says. "Money and our relationship with it impacts how we approach all other areas of well-being, from needs for basic security to ultimate meaning and purpose, and everything in between."
