How to Obtain a Financial Planning Certification

A financial planning certification is a great alternative to a college career in finance. Given by colleges and universities, the certification is usually shorter and less involved than pursuing a full-time career, which makes it the best choice for people who are already working or looking to change careers. Depending on your current field of employment, it can also help you advance in your career.

Instructions

Difficulty: Moderately Easy

Obtain a Financial Planning Certification

1. Be ready to take courses in business foundations, financial planning, risk management, investments, tax planning, retirement planning, employee benefits and estate planning. While some courses may vary from college to college, the basics of the certification usually remain relatively stable.
2. Be ready to obtain Continuing Education Units (CECs) every year or two. Because laws and regulations change frequently, it's important to keep up to date by attending additional classes and ensuring that you understand the changes proposed by the government.
3. Make sure the school you choose to attend is registered with the Certified Financial Planner Board of Standards Inc. (CFP Board), which regulates the planning and execution of final exams and re-certifications (see Resources below). A school that is registered should also be able to provide continuing education classes and help you set up your practice.
4. Apply for licensing with the Certified Financial Planner Board of Standards Inc. (CFP Board) after graduating from a recognized school. While timing varies depending on state and even city, you have a period in which to apply for a license following your graduation. This term can be as short as 6 months or as long as 5 years, so make sure you check regulations early on.
5. Obtain your certification directly from the Certified Financial Planner Board of Standards if you want to avoid the middleman. The board offers its own exam, plus exam preparations classes, sample tests and a list of topics you should be familiar with if you want to pass the exam. You can apply for the CFP certification exam online directly through its website.

Tips & Warnings

• Getting a proper certification is not necessarily cheaper than attending college and pursuing an associate's degree in finance. If you are looking into obtaining a certification, do so because you prefer the system and educational requirements not as a way to save money.