Financial Planning Competency Handbook, 2nd Edition

CHAPTER 84 Financial Therapy: The Integration of Financial Planning and Theory

Kristy L. Archuleta, PhD, LMFT

Kansas State University

Bradley T. Klontz, PsyD, CFP^®

Kansas State University

Sonya L. Britt, PhD, CFP^®

Kansas State University

INTRODUCTION AND RATIONALE FOR FINANCIAL THERAPY IN FINANCIAL PLANNING

Financial therapy is an emerging field, combining financial planning and mental health concepts. While it is difficult to ascertain when the term “financial therapy” was first used, the Financial Therapy Association formed in 2009 as a forum for researchers, practitioners, media, and policymakers to share research and practice-based methods of financial therapy. Shortly thereafter, the Journal of Financial Therapy published its first issue with a mix of practitioner and academic pieces with the goal of bringing the two disciplines closer together in a shared desire to help clients improve their financial health.

Financial therapy is defined as “the integration of cognitive, emotional, behavioral, relational, and economic aspects that promote financial health.”¹ Only a handful of people have formal training in all areas of financial therapy as identified by the Financial Therapy Association, making collaboration among fields necessary.

Close collaboration between two professions can be difficult enough to accomplish. However, the integration of theory, research, and practice in financial therapy across professions is quite aspirational, but is considered vital to developing ...