When the COVID-19 pandemic hit, mental health and financial wellness took a massive blow for people around the world. Layoffs and furloughs skyrocketed. With the lack of work came a lack of income. Household debt in the United States rose $286 billion in the middle of 2021. Many felt the effects of financial instability and the anxiety and depression that can come with it.
Certified financial therapy highlights the relationship between emotional reactions to money and how these reactions influence overall wellness. Certified financial therapists (CFTs) are trained to educate how financial choices are connected to various psychological factors. Typically, what sets CFTs apart from certified financial planners and registered investment advisers is an education and background in psychology.
Studies have shown employees who feel sound in their relationship with money take fewer sick days, have fewer conflicts with coworkers, and are more likely to stay with the same employer. Financially stable employees are also more likely to report good health, higher levels of engagement, and productivity.
Employers are encouraged to consider an employer-provided CFT benefit. This benefit typically includes workshops that can increase the chance of meeting financial wellness goals by 65%. While access to CFTs is limited at the moment, experts see growth potential and predict this benefit will become popular in the future.