How Much Does a Financial Counselor Make?
The NFEC recently gathered data to discover how much a financial counselor can expect to earn. Data points included any employment opportunities where a financial counselor’s tasks included analyzing clients’ financial realities, guiding goal-setting, providing educational guidance, and offering ongoing support and accountability.
The resulting analysis included results from the leading job websites in the US, which were searched using keywords related to financial counseling employment. The data showed that financial counselors can expect to earn more in urban areas. For example, ZipRecruiter shows that a financial counselor in a city earns an average $66,000 per year, over 35% higher than salaries for similar positions in rural locations.
Data included here are based on results from the top job websites in the nation, using search terms related to financial coach job opportunities. Salaries were higher in metropolitan areas – ZipRecruiter estimated a financial coach salary at $66,000, more than 35% above similar positions in rural areas.
Analysis of Employers Hiring Financial Counselors
In a search of ZipRecruiter, LinkedIn, and Indeed, all information yielded by the search term “financial counselor” was included in the results for “how much does a financial counselor make.” We excluded from the dataset any website for an organization that sells financial products or instruments.
According to our results, several common financial counselor positions were available. Most focused on three primary areas: financial counseling for organizational staff, personal finance counseling at the community level, and counseling around specific topics (e.g. state retirement plans). For example, one site discusses careers in financial counseling.
How Can I Increase My Financial Counselor Salary?
Financial counselors can increase their earning potential in several ways:
Experience
A financial counselor can improve earnings by gaining experience and developing case studies that showcase clients who benefited from their services.
Training
Continuing education to keep certifications up-to-date and build more credentials can lead to a higher income for a financial counselor.
Reporting
Counselors who fine-tune their reporting and evaluation skills can leverage greater income potential.
Technology
When financial counselors master and stay up-to-date on current technological advancements, their salaries are likely to keep pace.
Image
A certified financial counselor who showcases his or her abilities and testimonials using a professional online image will stand out above the crowd.
Commitment
Enhance earnings and attract referrals by demonstrating your passion for helping others reach their personal finance goals and your commitment to excellent counseling service.
Pricing for Financial Counseling Packages Differs Broadly
In pursuit of learning how much does a financial counselor make, the NFEC reviewed 137 websites that turned up in the top 50 search results on Google for “financial counseling” keywords and terms. We found 26 relevant to this analysis. The services offered to earn a financial counselor’s salary varied widely in price, from a few hundred to almost six thousand dollars for an annual service. Most commonly, counselors offered packages (21 of the 26 sites). These packages in turn differed in structure, but all included personal contact with the counselor and all were based on time (e.g. by the month, quarter, or year).
Given the significant differences between these financial counseling packages, we used hourly pricing as the comparison point. Out of the 26 sites we reviewed, 12 offered hourly price options. Other pricing methods involved specific goal achievement (e.g. credit score improvements, budget revision, support with certain financial decisions). We discovered one company potentially in violation of SEC regulations – stating that they “provide investment advice.” (The SEC stipulates that unlicensed financial counselors may not provide investment advice.) Neither the NFEC Financial Coach designation nor any other counseling certification – such as a housing counselor certification title empowers financial counselors to offer investment advice to clients.
Common Services Offered by Financial Counselors
This analysis exploring “how much does a financial counselor make” found that direct contact with the counselor – by phone, email, or in person – was the most common service financial counselors offered (all 26 sites). Second was educational information (8 of the 26). Out of the 26 sites, five offered clients personal finance plans that were customized to their circumstances; and two included revised planning and reporting (updating the initial financial plan and/or providing new reports with updated data).