There are hundreds of financial advisor designations to choose from. However, one area that has seen an explosion in interest in recent years is financial psychology and behavioral finance.<\/p>\n
Helping people with behavior change and the emotional aspects of money alongside financial planning can be incredibly valuable. In fact, it may add 100 to 200 basis points in net return, according to Vanguard’s most recent update of its\u00a0Putting a Value on Your Value<\/i>\u00a0report.1<\/sup><\/p>\n It’s so valuable, the CFP Board’s Practice Analysis Study discovered, that anyone holding the CFP\u00ae marks should have specific training in this field of study. The CFP Board announced that it would add \u201cPsychology of Financial Planning” to the topics that professionals need to know to pass the CFP\u00ae exam in 2021, and it first appeared on the test in 2022.<\/p>\n Maybe you earned your CFP\u00ae marks before then, and you’d like to know what you might have missed in current coursework. Or maybe you just find this area of finance intriguing and need to earn some continuing education credit. The good news is, there are quite a few choices for upgrading and refreshing your knowledge.<\/p>\n Here, we’ve gathered 10 financial psychology designations and certificate programs that provide professional training in addressing the emotional aspects of money decisions or complement a holistic financial planning skillset. Some are listed in the CFP Board book\u00a0The Psychology of Financial Planning<\/i>.<\/p>\n Before diving in, you should know that some state securities and insurance regulators don’t permit financial professionals to hold out a designation unless it’s accredited by a board, such as the\u00a0ANSI National Accreditation Board<\/a>\u00a0or the\u00a0National Commission for Certifying Agencies<\/a>. If you plan to use the designation in your marketing, check with your firm’s compliance team.<\/p>\n And keep reading to the end for a bonus CE resource that is freely available to all financial professionals.<\/p>\n Issuing organization website:\u00a0<\/b>Financial Therapy Association<\/a><\/p>\n Competency areas include:<\/b>\u00a0Money and relationships; communication and general counseling skills; theories and models of therapeutic intervention; the fundamentals of financial planning & counseling<\/p>\n Certification process:\u00a0<\/b>Complete educational training and gain hours of experience (this includes 500 hours of approved experiential training, including 250 direct client service hours), pass an examination, agree to a code of ethics, and maintain competency through continuing education<\/p>\n CE requirements:<\/b>\u00a020 hours every two-year renewal cycle<\/p>\n Certification prerequisites:<\/b>\u00a0Must have a bachelor’s degree in a finance- or mental health-related field, or a designation such as Certified Financial Planner\u2122 or Accredited Financial Counselor\u00ae<\/p>\n Best for the financial professional who:\u00a0<\/b>Wants to explore financial therapy certification to expand their services or serves a clientele that could benefit from a therapeutic approach.<\/p>\n Issuing organization website:\u00a0<\/b>Creighton University<\/a><\/p>\n Competency areas include:\u00a0<\/b>Financial psychology, applied behavioral finance, the psychology of family finances, communication, and client interviewing skills<\/p>\n Certification process:\u00a0<\/b>To earn the graduate certificate, you must complete five courses<\/p>\n CE requirements:\u00a0<\/b>None (not a designation)<\/p>\n Certification prerequisites:\u00a0<\/b>Bachelor’s degree<\/p>\n Best for the financial professional who:\u00a0<\/b>Wants to learn directly from experts in the field, including Drs. Ted and Brad Klontz. If you earn the graduate certificate, you can apply to become a Certified Financial Behavioral Specialist\u00ae.<\/p>\n Issuing organization website:\u00a0<\/b>Financial Psychology Institute\u00ae<\/a><\/p>\n Competency areas include:\u00a0<\/b>Financial psychology, behavioral finance<\/p>\n Certification process:\u00a0<\/b>Complete a certificate in financial psychology and behavioral finance or a related field, adhere to a code of ethics<\/p>\n CE requirements:\u00a0<\/b>20 hours\u00a0<\/b>of continuing education every two years<\/p>\n Certification prerequisites:\u00a0<\/b>Bachelor’s degree or higher from a regionally accredited institute of higher learning and\/or a license, registration, or certification in financial planning, counseling, coaching, mental health, or a related field; two letters of recommendation from professionals familiar with financial psychology or financial therapy who are also familiar with your work<\/p>\n Best for the financial professional who:\u00a0<\/b>Is seeking a designation to show expertise in financial psychology and behavioral finance.<\/p>\n Issuing organization website:\u00a0<\/b>The Financial Transitionist Institute<\/a><\/p>\n Competency areas include:\u00a0<\/b>Transition traits, financial triage\/The Decision Free Zone\u00ae<\/p>\n Certification process:\u00a0<\/b>Attend a minimum of 10 live monthly training sessions, complete client experience homework and a written case study, and pass a six-hour exam<\/p>\n CE requirements:\u00a0<\/b>15 CE credits each year<\/p>\n Certification prerequisites:\u00a0<\/b>Only those with a CDFA, CFP\u00ae, CFA\u00ae, ChFC\u00ae, CIMA\u00ae, CPA\/PFS, CPWA, or CWS designation may sit for certification<\/p>\n Best for the financial professional who:\u00a0<\/b>Specializes in serving clients in transition and is familiar with The Sudden Money Institute.<\/p>\n Issuing organization website:\u00a0<\/b>Kinder Institute of Life Planning<\/a><\/p>\n Competency areas include:\u00a0<\/b>Life Planning (Defined on the organization’s website as \u201cexpertise in a structured interview process and the relationship-based listening skills that help clients uncover their most meaningful and fulfilling aspirations so financial planning can most efficiently support the lives they long to live.”)<\/p>\n Certification process:\u00a0<\/b>Complete three steps, including: EVOKE\u00ae Life Planning Training; The Seven Stages of Money Maturity\u00ae Training; and the 6-month Life Planning Mentorship<\/p>\n CE requirements:\u00a0<\/b>Eight hours of continuing education every two years<\/p>\n Certification prerequisites:\u00a0<\/b>None<\/p>\n Best for the financial professional who:\u00a0<\/b>Is a fan of George Kinder’s work and wants to learn the life planning methodology.<\/p>\n Issuing organization website:\u00a0<\/b>IFS Institute<\/a><\/p>\n Competency areas include:\u00a0<\/b>Internal Family Systems (Defined on the organization’s website as \u201ca transformative tool that conceives every human being as a system of protective and wounded inner parts lead by a core self.”)<\/p>\n Certification process:\u00a0<\/b>Complete a course of study; complete 200\u00a0<\/b>direct service hours of IFS practical application; submit an IFS-I approved clinical consultant recommendation; undergo a session review<\/p>\n CE requirements:\u00a0<\/b>20 hours of IFS CE or 10 hours of IFS CE plus 10 hours of clinical consultation every two years<\/p>\n Certification prerequisites:\u00a0<\/b>An individual must be registered or certified in their own field of practice<\/p>\n Best for the financial professional who:\u00a0<\/b>Is familiar with\u00a0<\/b>Internal Family Systems and sees how it would benefit their practice.<\/p>\n Issuing organization website:\u00a0<\/b>College for Financial Planning<\/a><\/p>\n Competency areas include:\u00a0<\/b>Behavioral finance<\/b><\/p>\n Certification process:\u00a0<\/b>Complete two courses and pass a certification exam<\/p>\n CE requirements:\u00a0<\/b>16 hours every two years<\/p>\n Certification prerequisites:<\/b>\u00a0None<\/p>\n Best for the financial professional who:\u00a0<\/b>Wants to further their knowledge of behavioral finance and obtain a designation.<\/p>\n Issuing organization website:\u00a0<\/b>Think2Perform<\/a><\/p>\n Competency areas include:\u00a0<\/b>Behavioral finance<\/p>\n Certification process:\u00a0<\/b>Complete two courses and pass a certification exam<\/p>\n CE requirements:\u00a0<\/b>20 hours of continuing education every two years<\/p>\n Certification prerequisites:\u00a0<\/b>None<\/p>\n Best for the financial professional who:\u00a0<\/b>Wants to further their knowledge of behavioral finance and obtain a designation.<\/p>\n Issuing organization website:\u00a0<\/b>Association for Financial Counseling & Planning Education\u00ae<\/a><\/p>\n Competency areas include:\u00a0<\/b>Principles of counseling; managing credit and debt; housing; student loans; retirement planning; tax planning<\/p>\n Certification process:\u00a0<\/b>Complete a course of study (candidates that hold the CFP\u00ae, CPA, ChFC\u00ae, or CFA certification may submit documentation of a recognized credential), pass a proctored exam, and adhere to the AFCPE Code of Ethics<\/p>\n CE requirements:\u00a0<\/b>30 hours of continuing education every two years<\/p>\n Certification prerequisites:\u00a0<\/b>Earn at least 1,000 hours of financial counseling experience confirmed by letters of reference<\/p>\n Accredited designation:\u00a0<\/b>Yes, through the Institution for Credentialing Excellence<\/p>\n Best for the financial professional who:\u00a0<\/b>Wants to provide financial advice to a broader audience and gain counseling skills for helping clients going through a crisis event.<\/p>\nExplore Financial Psychology and Behavioral Finance<\/h2>\n
1. Certified Financial Therapist\u2122 (CFT-I\u2122)<\/h2>\n
2. Financial Psychology and Behavioral Finance graduate certificate<\/h2>\n
3. Certified Financial Behavior Specialist\u00ae (FBS\u00ae)<\/h2>\n
4. Certified Financial Transitionist\u00ae (CeFT\u00ae)<\/h2>\n
5. Registered Life Planner\u00ae (RLP\u00ae)<\/h2>\n
6. Certified Internal Family Systems\u2120 Practitioner<\/h2>\n
7. Accredited Behavioral Finance ProfessionalSM<\/sup>\u00a0(ABFPSM<\/sup>)<\/h2>\n
8. Behavioral Financial Advisor (BFA)<\/h2>\n
9. Accredited Financial Counselor\u00ae (AFC\u00ae)<\/h2>\n
10. Psychology of Financial Planning SpecialistTM<\/sup>\u00a0certificate<\/h2>\n