Navigating financial therapy across different income levels: emotional & financial support for low-income earners
Money-related stress is a universal experience that transcends income levels, influencing everyone from those struggling to make ends meet to those managing vast financial portfolios. However, the approach to managing this stress through financial therapy can vary greatly depending on one's income. In this blog post, we'll explore how individuals with a low-income can access and benefit from financial therapy, ensuring everyone has the tools to achieve financial wellness. This post also offers a multitude of financial wellbeing resources whether you are seeking support or just looking to increase your financial confidence.
Low-Income Individuals: Assessment, Accessibility, and Affordability
For low-income individuals, the primary barriers to accessing financial therapy are often financial trauma—emotional and psychological stress caused by economic hardships—along with cost and availability. However, the benefits of mental health support in conjunction with financial counseling can be transformative, providing crucial guidance on budgeting, debt management, and making the most of limited resources.
Assessing for and Treating Trauma
Assessing and addressing underlying trauma through mental health therapy is an essential step. Often, financial struggles are intertwined with emotional and psychological stressors, which can stem from or lead to traumatic experiences.
By accessing mental health support—available through community health centers, sliding-scale clinics, and online platforms offering affordable counseling—individuals, couples, and families can begin to heal emotionally. Below are some ways to access free or low-cost mental health services.
Substance Abuse and Mental Health Services Administration (SAMHSA): Offers a Treatment Provider Finder, 988 Suicide & Crisis Line, Veterans Crisis Line, and Online Support Material. Se habla Espanol.
National Alliance on Mental Illness (NAMI): Offers Support and education programs for families and individuals living with mental health conditions
211 or Internet Search - You can access free or low-cost mental health services through your county.
Cal Health and Human Services - Mental Health Resources for Youth
BeWellLine - Helps California Residents Going Through a Mental Health Crisis
Insight Timer - Free Meditation App
This foundational emotional stability can make it easier to tackle financial challenges, as it equips you with better-coping mechanisms and a clearer state of mind. Thus, prioritizing mental health therapy prepares you to more effectively engage with financial therapy, ultimately fostering a more comprehensive approach to your overall well-being. Below are programs or resources available for free or low-cost financial counseling.
Accessing Financial Counseling
Community Financial Programs and Non-profits
Many communities offer free or low-cost counseling through local non-profits or government programs designed to assist those in financial hardship. Some programs to look for programs include:
Credit Unions - Credit Unions offer a range of free financial wellness services including education, webinars, coaching, and advising. Check with our local Credit Union about their services. Of note are San Diego County Credit Union, California Coast Credit Union (Cal Coast), Cal Coast Education Center, Patelco.
Financial Empowerment Centers partner with cities to offer low-cost or free financial counseling. Check if your CITY provides this service.
211 - Is a free information and referral service that connects people to health and human service organizations in their community 24 hours a day/7 days a week.
In the United States, several federal programs offer free financial coaching or counseling to help individuals manage their finances effectively. Here are some key programs:
Cooperative Extension System (CES): Operated through the U.S. Department of Agriculture, the CES offers a variety of financial education programs, including personal financial coaching in many states. Their programs often focus on budgeting, debt management, and financial planning.
U.S. Department of Housing and Urban Development (HUD): HUD offers free or low-cost counseling for issues related to homeownership, renting, default, foreclosure avoidance, credit issues, and reverse mortgages. These services are provided through approved housing counseling agencies.
Veterans Affairs (VA) Financial Counseling: For veterans and their families, the VA offers financial counseling as part of its benefits, helping with managing personal finances, resolving credit issues, and creating a budget.
Online Resources
Numerous websites and organizations provide free financial advice and tools that can help individuals understand and manage their finances better:
National Foundation for Credit Counseling (NFCC): NFCC is supported by government partnerships and provides extensive credit counseling, debt reduction services, and financial education through its member agencies.
Consumer Financial Protection Bureau (CFPB): The CFPB provides tools and resources for financial education, including guides on handling money, dealing with debt, and understanding consumer rights. They also offer information to help consumers navigate financial challenges.
Credit Karma: Offers free credit scores, reports, and insights, as well as advice on how to improve your credit. They also provide tools for spotting potential identity theft.
The Financial Literacy and Education Commission (FLEC): Operated by the U.S. Treasury Department, this site offers resources and tools to improve financial literacy through its MyMoney.gov website.
CashCourse.org: Part of the National Endowment for Financial Education, this website offers free courses, articles, tools, and other resources to help college students and young adults make informed financial decisions.
Khan Academy: Known for its educational resources, Khan Academy offers free courses on personal finance covering savings, investments, credit, and more, providing foundational knowledge in an accessible format.
Emotional and Financial Wellbeing Options through your Employer
Speaking to your HR department about your medical and wellness benefits may identify options for employee assistance programs which can include therapy, coaching, and financial wellbeing offerings.
Accessing Financial Therapy
Cost of Financial Therapy
The financial inaccessibility of therapy is a major barrier. In the U.S., therapy sessions typically cost between $100 to $200 per session, the cost can be higher depending on location, and financial therapy is not often covered by insurance. This cost is prohibitive for low-income individuals but some therapists may have more affordable options as outlined below.
Read: How Much Does Financial Therapy Cost in California?
Read: Your Financial Therapist is Out of Network, Now What?
Sliding Scale Fees
Some financial therapists offer sliding scale fees based on income or reduced-rate sessions, making it more affordable for low-income individuals to receive personalized support. When searching for financial therapists, look for information on their website. Some therapists also offer free consultation calls where you can also ask for this information.
Group Therapy
Group therapy offers a significant financial benefit compared to individual sessions. It typically costs less per person since multiple clients share the time with the therapist, making it more affordable. Additionally, participants benefit from peer support, which can enhance emotional healing and personal growth without incurring additional costs. Group settings provide opportunities for individuals to learn from each other’s experiences, reducing the financial strain of seeking mental health or financial therapy, especially for those with limited resources.
Financial wellness resources for college students
College students have access to a variety of services to support their financial wellness. Check with your college or university to see what services are offered. Some possibilities are:
Financial Aid Office: provides assistance with applying for scholarships, grants, loans, and work-study programs.
Student Financial Services: Offers counseling on budgeting, debt management, and financial planning.
Workshops and Seminars: Many colleges host workshops on topics such as budgeting, credit management, and student loan repayment.
Peer Financial Counseling: Some institutions offer peer-to-peer financial counseling programs where trained students provide financial education and advice.
Online Resources and Tools: Access to financial calculators, budgeting apps, and online courses to help manage personal finances.
Emergency Financial Assistance: Programs to help students facing unexpected financial hardships.
Career Services: Assistance with finding part-time jobs, internships, and post-graduation employment to help manage and plan for financial responsibilities.
Health and Wellness Center: Sometimes includes resources and support for financial stress and wellbeing.
Credit Counseling Services: Offers guidance on managing and improving credit scores.
Financial Literacy Programs: Comprehensive programs that include various aspects of personal finance education.
Conclusion
If you're feeling overwhelmed by financial stress, consider exploring the mental health, financial counseling, and financial therapy options available for your income level. Taking the steps to manage your mental health and financial health is a crucial part of your overall well-being.
Ready to Learn how Koru Financial Therapy can Support your Financial Wellbeing?
Koru Financial Therapy is committed to supporting access to evidenced-based mental health and financial wellness and offers a variety of affordable options. To access Koru Financial Therapy services, which include individual, couple, family, or group sessions – follow the steps below:
Reach out to schedule a free 20-minute phone consultation.
Speak with Mariah, a certified financial therapist.
Start your journey to growth, strength, and peace.
Explore further Koru Financial Therapy or Next Gen Wealth & Wellbeing resources and posts.
Financial Therapy in California with Koru Financial Therapy provides treatment for financial anxiety, financial trauma, money management, and financial caregiving among others.
About the Author
Mariah is a seasoned Mental Health and Financial Therapist committed to helping individuals navigate the complex interplay between emotional well-being and financial stability. With a robust background in social work, psychology, and finance, Mariah specializes in offering therapeutic support and financial counseling across various income levels. Mariah is passionate about empowering clients by addressing underlying emotional issues that impact financial decisions and providing practical tools for managing financial stress. Through community outreach, workshops, group therapy, and one-on-one counseling, Mariah strives to make financial therapy accessible and affordable, especially for those in low-income brackets.
