Psychology of Financial Planning

In Closing

Integrating psychology into financial planning requires a clear understanding of the boundaries between the roles of a financial planner and a mental health provider. These boundaries are important for many reasons, including the need to abide by the strict ethical codes that have been established in the mental health profession. We describe these in detail in the accompanying book, Psychology of Financial Planning. However, they are so important that we included an excerpt here.

 

This illustration is designed to highlight the difference between the role of the financial planner and that of a mental health professional. It is critical to understand that a financial planner is not a mental health provider. In fact, it would be unethical for a mental health provider, acting in their role as a mental health provider, to also manage their client's money. As such, when a client is exhibiting mental health–related concerns – including a money disorder (e.g., compulsive buying disorder), anxiety, or depression – a financial planner would not attempt to “treat” the client. When a client exhibits signs of a mental disorder, the financial planner should consider making a referral to a mental health provider who can diagnose and treat the potential disorder. The financial planner would never attempt to “diagnose” a client, but rather make a referral because the client is ...