Money, a ubiquitous yet complex entity, often weaves a tangled web in our lives. Can financial therapy be the tool to unravel this intricate relationship? Let's delve into the potential of this emerging field to reshape our monetary perspectives.
Financial therapists use their training as psychologists to help clients untangle their relationship to money
Money decisions are deeply connected to emotions
- Daniel Kahneman was awarded the Nobel Prize in economics for his work applying psychological insights to economic theory, especially in the areas of judgment and decision-making under uncertainty
- His work was confirmation that money decisions are emotional
Experts liken fear around money to other well-known phobias
Psychological stressors tied to money can be a significant problem
- CBT, or cognitive behavioral therapy, is a form of talk therapy that focuses on making changes by examining underlying issues
- Carrie Rattle, a former Wall Street-executive-turned-financial-therapist, agrees CBT is a practical approach to untangling people’s emotions with regards to money
- When people’s spending habits align with their values, they’ll get a better emotional return on their spending
Not a cure
Financial therapy is still a relatively new field, and its practices are still largely limited to the US.
- The potential upside is big, but some experts still believe properly addressing stress around money may go deeper than hyper-targeted financial therapy
- Although Burchell does believe in treating financial phobias, he doesn’t necessarily support treating finances as a standalone issue.
