Financial Counselors

Career summary

Depending on their job duties, financial counselors may be called credit counselors, student financial aid counselors, personal financial advisors, investment or retirement counselors, or consumer credit counselors.

#from NWOIS overview, checked 2/27/19 lh

Financial counselors usually specialize in one of the following areas:

• College financial aid counselors help students obtain money to help pay for school.
• Consumer credit counselors help people who are in debt or who need help managing their money.
• Retirement and investment counselors help people invest money and plan for their future.

Financial counselors talk to clients to learn more about their economic situation. They keep records of their communication with clients and may help them fill out required forms.

Financial aid counselors

Financial aid counselors talk to students and their parents about what types of aid are available. Sometimes they talk to people one-on-one and other times they speak to groups. They explain the different types of aid, such as grants and loans. They discuss both federal and state aid packages.

Counselors review students' applications to determine whether they qualify for aid. Once they decide who is eligible, they use standards to figure out how much each student will receive. They make the funds available for students to pay for classes, books, or even housing.

Credit counselors

Credit counselors talk to clients about their spending habits. They look at clients' income and bills. They teach their clients money management skills. They help them develop a budget and a plan for paying off their bills. They coach their clients on how to contact bill collectors and set up a payment schedule.

Investment and retirement counselors

Investment and retirement counselors talk to clients about their goals and dreams. They educate clients about the type of investments that work best for their needs. Counselors may contact clients periodically to see if they want to make additional investments or modify what they currently have.

Financial counselors recruit new clients on an ongoing basis. They monitor financial markets to stay up to date on market conditions.

Related careers

This career is part of the Finance cluster of careers.

Related careers include:

• Accountants and Auditors
• Budget Analysts
• Credit Analysts
• Credit Counselors
• Financial Analysts
• Financial Examiners
• Financial Managers
• Insurance Agents
• Job Benefits and Analysis Specialists
• Loan Officers
• Securities Salespeople

Job duties

Task list

The following list of tasks is specific to financial counselors.

• Talk to individuals and groups about types of financial aid available to college and university students.
• Interview students and check their applications to see if they are eligible for financial aid.
• Assist in selection of candidates for specific awards or aid.
• Determine amount of aid to be granted.
• Authorize the release of funds to students.
• Prepare required records and reports.
• Interview clients to learn about their income and expenses and their goals.
• Counsel clients on financial problems. Answer client questions.
• Calculate amount of debt and funds available.
• Establish payment priorities to plan payoff method.
• Contact creditors to set up payment plans. May require clients to make these contacts.
• May open accounts for clients and disburse funds to creditors for clients.
• Look into different investment and savings plans to see if they match certain client needs. Find companies or funds that make less impact on the natural environment.
• Monitor financial markets.
• Prepare reports and interpret information for organizations or individual clients. This includes tax rebates for electric cars or projects to lower the use of electricity in homes.
• Build and maintain client base. Recruit new clients on an ongoing basis.

Common work activities

Financial counselors perform the following tasks. These tasks are common to many careers.

• Get information needed to do the job
• Use computers
• Make decisions and solve problems
• Evaluate information against standards
• Establish and maintain relationships
• Analyze data or information
• Update and use job-related knowledge
• Develop goals and strategies
• Process information
• Organize, plan, and prioritize work
• Identify objects, actions, and events
• Communicate with people outside the organization
• Communicate with supervisors, peers, or subordinates
• Think creatively
• Provide advice and consultation to others
• Explain the meaning of information to others
• Perform for or work with the public
• Document and record information
• Convince others to buy goods or change their minds or actions
• Judge the value of objects, services, or people
• Monitor events, materials, and surroundings
• Monitor and control resources
• Develop and build teams
• Schedule work and activities
• Coach others
• Perform administrative tasks
• Resolve conflicts and negotiate with others
• Teach others
• Guide, direct, and motivate others
• Coordinate the work and activities of others
• Assist and care for others

Work requirements

Working conditions

In a typical work setting, financial counselors:

Interpersonal relationships

• Have a high amount of contact with clients or students. Communicate with others by telephone, e-mail, face-to-face discussions, letters, and memos.
• Are somewhat responsible for the work done by others.
• Often work as part of a team (this is especially true for financial aid counselors).

Physical work conditions

• Often work indoors.

Work performance

• Must be exact in their work. Errors could cause students to get too little aid or clients to go deeper into debt.
• Repeat the same mental tasks.
• Make decisions on a daily basis that greatly impact clients, their coworkers, and employer's reputation.
• May seek advice from others before acting, but usually act independently.
• Set most of their daily tasks and goals without consulting another first.
• Work in a very competitive atmosphere where daily and weekly deadlines must be met.

Hours/travel

• Usually work 40 hours a week.
• May work nights and weekends to meet with clients, if working as a consumer credit counselor.
• May travel throughout the county or state, if working as a consumer credit counselor.

Physical demands

Financial counselors frequently:

• Sit for long periods of time.

It is important for financial counselors to be able to:

• Understand the speech of another person.
• Speak clearly so listeners can understand.
• See details of objects that are less than a few feet away.

It is not as important, but still necessary, for financial counselors to be able to:

• See details of objects that are more than a few feet away.
• Use fingers to grasp, move, or assemble very small objects.

Skills and abilities

Financial counselors need to:

Communicate

• Understand written information.
• Understand spoken information.
• Read and understand work-related materials.
• Speak clearly so listeners can understand.
• Listen to others and ask questions.
• Write clearly so other people can understand.

Reason and problem solve

• Combine several pieces of information and draw conclusions.
• Use reasoning to discover answers to problems.
• Analyze ideas and use logic to determine their strengths and weaknesses.
• Judge the costs and benefits of a possible action.
• Notice when something is wrong or is likely to go wrong.
• Recognize the nature of a problem.
• Develop rules that group items in various ways.
• Follow guidelines to arrange objects or actions in a certain order.
• Understand new information or materials by studying and working with them.
• Recognize when important changes happen or are likely to happen in a system.
• Think of new ideas about a topic.
• Identify what must be changed to reach goals.

Use math and science

• Add, subtract, multiply, and divide quickly and correctly.
• Choose a mathematical method or formula to solve problems.
• Use math skills to solve problems.

Manage oneself, people, time, and things

• Decide how to spend money to get the work done and keep track of how the money was used.
• Check how well one is learning or doing something.
• Manage the time of self and others.

Work with people

• Look for ways to help people.
• Be aware of others' reactions and understand the possible causes.
• Persuade others to approach things differently.
• Teach others how to do something.
• Change behavior in relation to others' actions.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Consumer Economics
• Family Resource Management
• Finance
• Higher Education Administration

Other programs of study to consider

• Accounting
• Accounting Technology and Bookkeeping
• Entrepreneurial and Small Business Operations
• Human Services

Training

To work as a financial counselor, you typically need to:

• have a high school diploma or equivalent;
• have a bachelor's degree; and
• complete long-term, on-the-job training.

Education after high school

Most financial aid counselors have at least a bachelor's degree. One of the best ways to prepare for this occupation is to major in student personnel administration. If you want a less specialized degree, major in finance, economics, or counseling.

Consumer credit counselors usually have a bachelor's degree as well. Common areas of study are family and consumer sciences, family resource management, and consumer economics.

Work experience

Gaining experience in the field is very important while attending school. A good source of experience is a student job or internship at the financial aid office at your school. This experience allows you to learn about various state and federal funding sources.

If your goal is to be a consumer credit counselor, consider volunteering at a non-profit credit counseling office.

Many counselors have at least three years of related experience before entering this field.

On-the-job training

Once on the job, financial counselors receive on-the-job training. During this time, you work under the supervision of a senior advisor and learn how to build a client network and develop investment portfolios. This training usually lasts for more than a year.

Financial counselors also take continuing education classes. Many groups offer workshops to keep you up to date on changes in this field. Those that work for specific financial companies may train for several months up to a year.

Helpful high school courses

In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements.

You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.

Helpful electives to take in high school that prepare you for this career include:

• Banking and Finance
• Computer Applications
• Consumer Law
• Economics
• Family and Consumer Sciences
• Personal Finance

Many financial counselors are self-employed. If you want to run your own business some day, you should consider taking these courses as well:

• Accounting
• Entrepreneurship
• Introduction to Business

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Employers of financial aid counselors require counselors to have at least a bachelor's degree. They look for previous experience in a financial aid office. In particular, they look for experience advising students and assessing financial need. Employers may look for knowledge of academic programs and scholarships that are unique to their school.

Employers of credit counselors require counselors to have at least a bachelor's degree. They look for experience in a variety of areas. For example, applicants may have experience in consumer decision-making, personal and family finance, or planning and leading financial programs. Some credit counselors travel to meet with clients. Employers of these workers may require applicants to have a good driving record and pass a drug test and physical exam.

All financial counselors need good math skills. They also need good communication and people skills.

Financial planners may pursue further study leading to the professional designation of Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Chartered Financial Analyst, Chartered Investment Counselor, or Personal Financial Specialist. These designations are required in one of the pathways for state registration. Certification requirements vary depending on educational background and experience. For state registration information contact the Washington State Department of Financial Institutions or for more general information, contact the Certified Financial Planner Board of Standards. Both are listed in the Other Resources section of this description.

#Checked Board of Standards contact info & verified above designations are still noted by the state, (see: http://dfi.wa.gov/investment-advisers/registration) 3/27/06, 4/11/16 CJ.

#no change 4/19/07 lh. Removed (& updated in db) contact info for CFPBS since is listed in Other Resources 3/28/08, cj. Info ok 4/6/10 & 4/2/12 & 3/11/14, 4/11/16 cj.

Tips

Excellent presentation skills are important for success as a financial planner.

Costs to workers

Costs include licensing fees for financial planners and professional association dues. Planners must attend courses, seminars, and workshops to update their knowledge of economic conditions and trends, and to keep up with changes in the field. Workers are expected to have appropriate business clothes.

#Took over national content so could remove statement that employers prefer applicants with computer experience, 4/11/16 cj.

Licensing/certification

Financial planners who give advice on securities investments and charge fees for such service must be registered as investment advisors with the Washington State Department of Financial Institutions. Financial planners who buy and sell products and services for their clients must meet state licensing requirements for insurance, securities, and/or real estate sales.

For further information, contact:

Washington State Department of Financial Institutions
Securities Division 
PO Box 41200
Olympia, WA 98504-1200
360.902.8815

#No changes 3/28/17 cj. updated url 2/27/19 lh

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Personal Financial Advisors 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Wages vary by the counselor's level of experience and formal training. In general, earnings increase with higher levels of experience and training. Those who work for the federal government may be on a fixed pay scale. They advance based on their experience and additional training. Financial aid counselors tend to earn lower wages than credit counselors.

Some employers provide benefits for full-time financial counselors. Typical benefits include health insurance, sick leave, paid vacation, and a retirement plan. Counselors who are self-employed must provide their own insurance and retirement plan.

Employment and outlook

Washington outlook

The state outlook depends on economic conditions and the expansion of Washington's population. The growing number of financial services and products available to consumers and changes in laws affecting their sale and distribution will also contribute to the demand for counselors.

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

About 25% of financial counselors are self-employed.

Major employers:

• Stock brokers and dealers
• Banks and credit unions
• Insurance companies

National outlook

Demand for this occupation is very strong as more people are getting ready to retire and seek help from financial planning advisors. As people live longer, the demand will grow for financial planning services. Another reason for growth is that fewer employers offer pensions so people need to seek the help of financial planners.

There will not be much competition for positions in this occupation, but job prospects are best for those with certifications.

Other resources

American Academy of Financial Management 
1670 F East Cheyenne Mtn Blvd
Colorado Springs, CO 80906

American Bankers Association 
1120 Connecticut Avenue NW
Washington, DC 20036
800.226.5377
202.663.5000

Certified Financial Planner Board of Standards 
1425 K Street NW, #800
Washington, DC 20005
800.487.1497
202.379.2200

Financial Industry Regulatory Authority 
1735 K Street
Washington, DC 20006
301.590.6500

Society of Certified Senior Advisors 
720 South Colorado Boulevard, Suite 750 N
Denver, CO 80246
800.653.1785

References

Career cluster

• Finance

Career path

• Enterprising (Business Communications)

O*Net  occupation

• Personal Financial Advisors (13-2052.00) 

O*Net job zone 

• Job Zone 4 - Considerable preparation needed. A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations.

DOT occupations

• Credit Counselor (160.207-010) 
• Financial-aid Counselor (169.267-018) 

Holland occupational cluster

• Enterprising/Conventional/Social

COPSystem

• Service Professional