What Is a Certified Financial Therapist (CFT-I)?

Few of us would claim to be perfect with our money. We may save less than we planned, overspend on occasion or forgo the monthly budget on vacation. However, there are some financial habits that are much more serious, such as compulsive spending or money-related anxiety. A certified financial therapist, or CFT-I, may be able to help if you or your partner fall into the latter category. They can not only offer guidance for your money management issues, but also add a therapy element to help get to the root cause of the habit.

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What Is a Certified Financial Therapist (CFT-I)?

A certified financial therapist (CFT-I) is a professional who has received certification from the Financial Therapy Association (FTA). This U.S.-based certification is designated for both financial and mental health professionals. In fact, its purpose is to blend the two into a unique therapy approach.

In order to become a CFT-I, an applicant must complete a series of training and competencies. Generally speaking, the FTA prefers applicants to have a bachelor’s degree or higher in either a mental health or financial field. However, there are a couple of exceptions to these education requirements:

Applicant has a bachelor’s degree in any other field and has one of the following certifications or titles: Certified Financial Planner™ (CFP®), Licensed Professional Counselor (LPC), Licensed Marriage and Family Therapist (LMFT), Certified Public Accountant (CPA), Chartered Financial Analyst (CFA), Certified Financial Consultant (ChFC), Chartered Life Underwriter (CLU), Financial Behavioral Specialist (FBS), Accredited Financial Counselor (AFC), Financial Coach (FFC), Licensed Clinical Social Worker (LCSW), licensed attorney, financial educator or has a Ph.D. in financial planning, business administration or economics
If you don’t meet any of the above, you can submit for a special review. According to the FTA’s website, this involves the certification committee conducting “a review to determine how your education aligns with certification requirements, which may include a review of your credentials, experience, formal education, and personal references. No work experience, non-work experience, or personal references will be considered in lieu of the completion of a degree.”

Candidates must complete a minimum of 500 experience hours, 250 of which must be client-facing. They must also take and pass a 100-question, multiple-choice exam via an online platform. This exam is limited to a two-hour time period.

A CFT-I is expected to act in accordance with the fiduciary standard. This means any decisions or approaches they take must be in your best interest. They are also not allowed to abuse the therapist/client relationship, must avoid product sales and have to follow a specific code of ethics.

The FTA offers an online registry where you can search for a local or online CFT-I who focuses on the areas of concern that you have.

What a Certified Financial Therapist Does

A Certified Financial Therapist with a client.

Certified financial therapists can choose to focus on any particular discipline they’d like, as long as their approach acknowledges the overlap of money and other areas of daily life. These therapists can help clients to not only call out areas of concern in their financial lives, but also identify certain triggers, recognize past traumas that contribute to financial issues and implement new habits. The goal being that you will walk away from this therapy with healthy, productive money habits and a better understanding of your financial triggers so you can better handle your investment portfolio.

A CFT-I can also play a valuable role in creating healthy financial strategies and goals for couples. This might mean offering financial literacy training, redirecting certain financial behaviors, setting new goals and tracking progress.

The focus of each CFT-I is different, but may include treatment for the following behaviors:

Compulsive spending
Financial anxiety and stress
Premarital counseling (including prenup agreements)
Wealth inequality (in relationships and within the family)
Cross-social class relationships
Financial secrets
Sudden money/windfalls
Estate planning
Occupational concerns (high-income earners, terminations, service industry workers etc.)

Generally, a CFT-I will need to have a therapy or financial background in order to get certified. These individuals can also be CFP® certified, which is a great combination of areas of expertise. This means that they can blend financial planning with money-based therapy services.

With that said, the primary purpose of a CFT-I is not to create a financial plan on your behalf or manage your investments. For that, you may still want to consult a financial advisor or investment broker.

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CFT-I Requirements

To earn the Certified Financial Therapist-I (CFT-I) designation, candidates must meet a combination of education, examination, experience and ethical standards established by the Financial Therapy Association (FTA). These requirements are designed to ensure that certification holders understand both financial planning concepts and behavioral or therapeutic approaches to money-related challenges.

Education

Applicants typically need at least a bachelor’s degree in a field related to finance, mental health or behavioral science. Common academic backgrounds include financial planning, psychology, counseling, social work, business or economics. In some cases, individuals with degrees in other disciplines may still qualify if they hold recognized professional credentials such as a CFP®, CPA, CFA, LMFT or similar certification.

Candidates whose education does not clearly align with the program’s requirements may request a special review. In these cases, the Financial Therapy Association evaluates the applicant’s academic background to determine whether it meets the standards for certification.

Examination

CFT-I candidates must pass a certification exam that evaluates their knowledge of financial therapy concepts and professional practices. The exam consists of 100 multiple-choice questions administered through an online testing platform. Candidates are given two hours to complete the exam.

Exam topics generally focus on the intersection of financial decision-making and behavioral or emotional factors. This may include financial psychology, communication strategies, ethical considerations and the practical application of financial therapy techniques.

Experience

Applicants must complete at least 500 hours of professional experience, including a minimum of 250 client-facing hours. This experience is intended to demonstrate that candidates have applied financial therapy concepts in real-world situations, whether through counseling, financial coaching or financial planning work that incorporates behavioral components.

Ethics

CFT-I professionals must adhere to the Financial Therapy Association’s code of ethics and professional conduct standards. These standards emphasize acting in the client’s best interest, maintaining professional boundaries and avoiding conflicts of interest. Certification holders must also avoid using the therapeutic relationship to promote financial products or services.

When to Work With a Certified Financial Therapist

There are many reasons that someone might have a negative relationship or unhealthy behaviors when it comes to money. Identifying and working through those reasons, however, can be a bit tricky.

That’s where financial therapy comes into play. Financial therapy is aimed at helping individuals overcome a variety of money-related roadblocks. These might include unhealthy behaviors and habits such as:

Failing to stick to a budget
Overspending
Failing to save
Racking up new debt
Failing to tackle existing debt

While financial therapy is often directed at those struggling with their spending, saving or debt, this isn’t always the case. In fact, it can be beneficial for those whose finances appear to be healthy on paper. If an individual has an unhealthy view of money, struggles with everyday spending or obsesses about finances, something may be out of alignment.

Financial therapy can help get to the root cause of the issue and help you find new ways to approach money in a healthy, consistent manner.

Bottom Line

A CFT-I can help identify unhealthy habits, root out triggers, set new goals and build healthy money habits. If you are struggling with any one of these, a therapist – who blends therapy and financial management – may be the right answer. These U.S.-based individuals are certified and can work with a variety of individual needs, preferences and money goals. Although this is a fairly new certification, it holds a unique place in the financial services industry.

Tips for Building Healthy Financial Habits

Though a CFT-I can help create financial goals, they can’t fully replace a financial advisor, especially when it comes to holistically managing money and investments. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
There are few financial tasks more important than building an adequate financial plan for your future. Use SmartAsset’s guide to creating a financial plan to get started.