What Does a Financial Counselor Do?

A financial counselor is a type of advisor who helps clients manage their personal finances, covering topics such as budgeting, debt and saving. You may encounter financial counselors at banks, credit unions, non-profits or government agencies. They often work with lower-income clients, and some financial counselors may focus on issues such as navigating public benefits.

What financial counselors do

Generally, a financial counselor could assist you with:

• Understanding basic financial principles.

• Managing debt.

• Learning money management.

• Coming up with financial goals and creating a strategy to work toward them.

• Understanding how money plays into personal relationships and self-esteem.

• Figuring out if you’re eligible for certain tax credits.

• Getting help from public assistance agencies.

• Understanding your credit score.

Financial counselors can receive training in additional areas as well, such as military pay and benefits or helping people with disabilities navigate their finances.

Housing counselors are a specific kind of financial counselor. They help people find affordable housing, navigate reverse mortgages and avoid foreclosure. The U.S. Department of Housing and Urban Development can help connect you with a housing counselor through its website.

How much do financial counselors cost?

The cost of visiting a financial counselor can vary, and it may depend on where the counselor works. Those on staff at banks, credit unions, colleges or other nonprofits or government agencies, like the military, likely receive a salary. Working with them may be free for eligible clients.

Financial counselors who work in private practice may charge an hourly rate or a flat fee for services. Their price points typically range widely, from $25 to $250 an hour^[0]

» Dive deeper into financial advisor costs.

How to find a financial counselor

The title “financial counselor” isn’t regulated, and it doesn’t guarantee the person has specific training. If you want to work with a financial counselor, consider finding one who’s earned the Accredited Financial Counselor (AFC) certification. This designation is offered by the Association for Financial Counseling & Planning Education and indicates that an advisor has completed over 1,000 hours of financial counseling experience and that they have passed the AFC exam^[0]

» MORE: How to find a financial advisor near you

Financial counselors vs. financial advisors

The main difference between a financial counselor and a financial advisor is that a financial counselor typically doesn’t manage a person’s investments or give investment advice.

While financial counselors tend to work with lower-income clients and focus on topics such as debt and budgeting, financial advisors usually offer a wider range of services and have expertise in topics that affect middle- and higher-income clients, such as portfolio management, complicated tax situations and estate planning.

• If you’re looking for help with things like budgeting and saving, a financial counselor with an AFC certification could be a good, lower-cost fit. 

• If you need investment management help or assistance coming up with a complete financial plan, a financial advisor (ideally one who is a certified financial planner) might be the right fit for you.