Practical Steps for How to Become a Financial Counselor
Those seeking to learn how to become a financial counselor can find important resources and suggestions here. On this site, you’ll find guidance and direction to succeed in a financial counseling or coaching venture. Read the following story illustrating how another would-be counselor put these steps into action.
Step 1: Training & Certification
Amy Bellwether had recently graduated from a private business college with a degree in accounting. She wanted to know how to become a financial counselor because she believed it was one way to apply her knowledge about money in a way that would help other people. Amy’s first step was to get the necessary education and earn her financial coaching certification. Becoming a financial counselor, this step was especially important.
Successful financial counselors, Amy learned, needed to gain more than just knowledge about managing personal finances. They needed to learn about behavioral psychology, how to teach and coach effectively, and current industry regulations. She found out that all these topics were covered comprehensively in a financial counseling certification program.
Amy discovered that graduating from this program would demonstrate her financial counseling capabilities and her certification would indicate compliance with national standards. These accomplishments would lend her credibility and give clients confidence that she was well-qualified. She felt this would give her momentum in becoming a financial counselor.
Step 2: Initial Experience for Becoming a Financial Counselor
Amy enrolled in the financial counselor training, but at the same time she started looking for ways to gain practical experience. Book learning was one component of the process for how to become a financial counselor; but Amy also needed to put what her knowledge into action.
Amy realized that each client she would counsel would be unique, because every individual has his or her own financial psychology, ingrained money habits, and financial realities they’re facing. Handling these unique situations presented a challenge to Amy, one that would require her to practice with several different people to improve her abilities.
In addition to hands-on experience, Amy realized that her initial counseling endeavors should be done under supervision. Until she had completed the coursework and earned certification, a mentor should check all her work.
Step 3: Systems, Processes, & Resources
The foundation for how to become a financial counselor is built by getting education, counseling some initial clients, and documenting their results. Next Amy needed to gather resources and build systems for managing her clients’ cases.
When choosing organizational software, Amy was looking for a platform that would allow her to view clients’ financial situations in their entirety – including bank balances, credit scores, retirement accounts, and insurance. She also wanted to set up timely reminders to guide client communications and relations. She researched financial counselor job descriptions to find the most popular financial coaching software and invested in a robust system.
Amy also wanted to give her clients physical financial plans with clear directions to follow toward their goals. Her software allowed her to generate those plans, along with progress reports so clients could track their accomplishments over time.
Step 4: Plan & Path – Work for Organization / Start a Business
Step 4: Plan & Path – work for organization / start business
Amy was close to finishing her coursework, and now she needed to decide how she wanted to counsel – whether working for a firm or starting her own enterprise. She determined that working for a company first would give her additional experience and help build her résumé. Once she gained the experience, she would then look into how to start a financial coaching business.
Amy located a large tech corporation that was seeking a financial counselor to work with its employees. Determining the path she was going to pursue helped her prepare to meet the company’s minimum qualifications for the position. She began documenting her clients’ results and writing case studies based on them, being sure to meet confidentiality and privacy protection guidelines.
The case studies Amy was building would demonstrate to her potential employer and its employees that she had become a distinguished financial counselor.
Step 5: Commitment to Excellent Service & Results
Once Amy completed these steps on becoming a financial counselor and taking on the role of a financial literacy counselor, she assumed responsibility to help clients reach their objectives. It was up to her to help the people she served stay focused after setbacks; and urge them on when they felt positive.
Not all of Amy’s clients saw positive results, which was frustrating. But at times when she did feel she made a difference, all her efforts seemed to pay off. Watching clients go from deep financial worry to seeing real progress toward a goal was infinitely rewarding.
Amy made a firm commitment to align with her certified financial counselor credentials and focused helping her clients achieve financial wellness. That helped more of them see positive results. Yet while Amy valued the chance to help people, she also applied those positive moments toward continuing to hone and improve her counseling abilities.