Financial Coaching and Financial Therapy: Differences and Boundaries

Subject Areas : Financial and Behavioral Researches in Accounting

shokrollah  khajavi ¹ (Accounting Department Shiraz University)
Arezoo  Mosallanejad ² (Faculty of Literature and Humanities, Jahrom University, Jahrom, Iran)

Received: 2022-07-16 Accepted : 2022-09-03 Published : 2022-08-23

Keywords: Financial health, Finances, Financial coaching, Financial Therapy,

Abstract :

Introduction: "Financial therapy" and "financial coaching" are relatively new terms in the financial literature. Study and research in these two areas is increasing rapidly and all of these studies emphasize their importance.Aim: The purpose of this conceptual paper is to disentangle differences between financial coaching and financial therapy.Method: At first the experiences of financial educators identify with Review studies and finally introduce the types of competencies required (including experience, skills, knowledge and awareness) to perform the tasks assigned to them based on the knowledge gained.Results: While financial coaching and financial therapy share many techniques and approaches, financial therapy is a more inclusive practice. Financial therapy (e.g., financial therapists) has the ability to address dysfunctional money attitudes, as well as money disorders, and covers a wider time spectrum of healing a person’s past trauma and old pains. Another difference between financial coaching and financial therapy that is discussed in the paper is the arrangement of services and compensation.Conclusion: The paper does not suggest that one approach is better or right. Each approach can be appropriate for particular situations