Financial Counselor Definition
The definition of financial counselor involves guiding people on the best ways to manage, invest or use their money. A financial counselor comprises of three types of careers---a personal financial counselor, financial aid counselor and debt counselor. Regardless of the type of counselor, an individual needs skills, education and desire to help people to be successful. According to Indeed.com, the average salary for a financial counselor in 2010 was $53,000 per year.
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Credit Counselor
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A credit counselor helps clients manage their money. The counselor interviews clients about their debts, bills, income and spending habits. Once he receives the information, the credit counselor calculates their income-to-debt ratio. Then she develops a plan to help clients pay off debts. In addition, the debt counselor teaches clients how to talk to bill collectors, create a payment schedule and avoid further debt. He may contact bill collectors or open a checking account on the clients' behalf, according to I Seek Careers.
Financial Aid Counselor
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The financial aid counselor explains and advises an individual and/or their parents regarding the types of aid available to pay for college. The counselor typically sits with the individual---whether a high school student or an adult---and looks over a financial aid application. During the conversation, she discusses the type of state and federal grants and loans, and university scholarships that are available. If the individual is eligible, the financial aid counselor computes how much aid the individual can receive. Once the person accepts the financial aid, the counselor makes the funds available for the individual to buy books and pay tuition. He also may sit on a committee that checks students' academic progress, such as number of class withdrawals or grade point average to ensure they are meeting financial aid requirements.
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Personal or Investment Counselor
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The investment counselor assists clients in achieving their financial goals. The counselor asks clients questions to understand their needs and current financial situation. Then she educates her clients on the best investments to make their money grow. He may periodically check up on clients or modify their financial plans, according to I Seek Careers.
Education Requirements
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A financial counselor usually needs an undergraduate degree to work in financial aid, personal or credit counseling. According to CVTips, a credit counselor should have a degree in finance, human ecology or business. However, a financial aid counselor, according to the Edu Program Advisor, needs a bachelor degree in finance or counseling and graduate degree. An investment or personal counselor also needs a bachelor degree.
Skills
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A financial counselor needs the ability to effectively communicate with clients. This includes the ability to listen, comprehend and understand what clients say. The counselor must have problem-solving skills to analyze, identify and find solutions to clients' dilemmas.
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References
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