Financial Counseling?
Compulsive Buying Disorder (CBD), also called oniomania, is a behavioral addiction characterized by recurrent, excessive, and uncontrollable shopping or spending, often leading to distress, financial problems, or social/occupational impairment. It’s more than just enjoying shopping; it’s driven by a psychological urge that can feel irresistible.
Here’s a structured overview:
1. Purpose of Financial Counseling
Budgeting & Cash Flow: Helping clients understand income, expenses, and how to create a realistic budget.
Debt Management: Developing plans to reduce or eliminate credit card debt, loans, or other obligations.
Financial Literacy: Educating clients about interest rates, credit scores, savings, and basic financial principles.
Behavioral Insight: Exploring emotional and psychological patterns affecting money habits (e.g., overspending, avoidance, financial anxiety).
Crisis Support: Assisting clients during financial crises, such as unemployment, unexpected medical bills, or bankruptcy.
2. Typical Financial Counseling Process
Assessment: Review income, expenses, debts, assets, and financial behaviors.
Goal Setting: Identify short-term and long-term financial objectives.
Action Plan: Create a customized plan (budgeting, debt repayment, saving strategies).
Implementation & Monitoring: Support the client as they follow the plan, making adjustments as needed.
Education: Teach skills for long-term financial stability.
3. Types of Financial Counseling
Credit Counseling: Focused on managing debt and improving credit scores.
Budget Counseling: Emphasizes creating sustainable spending and saving habits.
Bankruptcy Counseling: Required before filing for bankruptcy in some countries; helps clients understand options and consequences.
Financial Therapy: Combines psychological insight with financial guidance to address deeper emotional issues related to money.
4. Benefits of Financial Counseling
Reduced financial stress and anxiety
Improved money management skills
Better decision-making and goal attainment
Increased financial confidence and independence
Financial counseling is especially valuable when financial problems are affecting mental health, relationships, or overall quality of life.
Shervan K Shahhian
LIBERTY PSYCHOLOGICAL ASSOCIATION 