What Certifications Do I Need for Personal Finance Counseling?

A career in personal finance counseling can take several forms, so you need to narrow down the type of career you want to determine which industry certifications you may need. You might discover that your state requires you to hold a certification even if you're a self-employed personal finance counselor.

Credit Counseling

You may have to hold a certification issued through an employer if you want to work as a consumer credit and debt counselor. For example, the National Foundation for Credit Counseling is a network of nonprofit agencies that offers financial counseling to consumers. NFCC counselors help clients create household budgets, deal with delinquent debts and plan for buying a home. The NFCC indicates that its counselors must pass a certification exam to work for the organization.

State Requirements

Your state may require credit counselors to be certified. For example, Utah's Uniform Debt-Management Act requires counselors to register with the state and obtain a certification through one of seven organizations, including the National Association of Certified Credit Counselors. The NACCC course of study includes instruction on the psychology of spending and options for handling debt. The Utah law requires registered credit counselors to submit proof of their certification within 12 months of beginning work as a counselor. Your state's consumer protection agency or secretary of state's office should have information on whether you're required to hold a certification to work in any area of personal finance counseling.

Certified Financial Planner

People who work as personal financial advisers may not need a certification, according to the U.S. Bureau of Labor Statistics. However, obtaining a certified financial planner credential would likely give you more credibility with employers and clients. The Certified Financial Planner Board of Standards administers the credential, but candidates must at least have a bachelor's degree and three years of related experience before they can obtain the certification. Among other things, the certification exam tests an applicant's knowledge of insurance, taxes and retirement planning.

Considerations

A college degree may be more useful to aspiring personal finance counselors than a certification. The BLS indicates that employers usually prefer that financial advisers have a bachelor's or master's degree. An employer may not require a specific course of study, but the BLS notes that a degree in accounting, business, economics or finance provides training that advisers generally need. The BLS also notes that more colleges are offering programs that specifically focus on financial planning.

References

• U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-11 Edition: Personal Financial Advisors
• National Foundation for Credit Counseling: About the NFCC
• Utah Division of Consumer Protection: Approved Credit Counselor and Debt Specialist Certification Programs and Organizations
• National Association of Certified Credit Counselors: Credit Counselor Certification

Resources

• Certified Financial Planner Board of Standards: CFP Certification