Effects/benefits of a financial counselor
Driving Question: How does the profession of a financial counseling affect/benefit a person in debt, and how has a financial counselor impacted people’s lives?
Isn't it just easy to waste money on the latest trends, shoes etc.. And not have to worry about paying it off at the end? Well it won’t seem like that when you start paying weekly expenses, monthly debts, and have a little fun and then have no money left over on the side. Well that is the role of a financial counselor to help people Earn, Save, and Spend. A lot of people are willing to go into debt to buy what they want and that is why a lot of people are in debt, “At more than $14 trillion, America's debt might seem abstract, a …show more content…
During the meeting with the member the counselor keeps focus on finances by controlling the interview and interactions with the members. The counselor should always ask questions to keep the member engaged in the financial counseling process. After the counselor should manage a workable budget which is one that manages spending, pays down debt, and builds savings in a way that is suitable for the member. Also the best way a counselor can effectively motivate the member to stick to the spending plan is to remind the member of the positive consequences of that plan, there’s also the counselor creates a “cash envelope method” , to help limit the members spending, where cash is divided into envelopes labeled by spending category”.(“Cuna, Financial Education Counseling”).
There are three types of financial counseling. The first one is Remedial financial counseling. “Remedial financial counseling is used when a client experiences a state of financial, emotional, or personal discomfort. Also it helps cope with financial problems due to debt, overspending, and or other issues”. (Financial counseling, “Personal Financial Counseling Terms and …show more content…
People are allowing bills and expenses to claim larger and larger portions of their income, and as they do, debt levels are rising. There’s nothing wrong with pursing the things you want – but doing so without regard to your security creates financial risks, promotes debt, and is the main reason so many people are unnecessarily living from paycheck to paycheck. (Money Crashers).Adjust your personal savings to suit your current circumstances. Figure out what’s comfortable by calculating all your bills and necessary expenses. See how much money you have left and use that as spending
Driving Question: How does the profession of a financial counseling affect/benefit a person in debt, and how has a financial counselor impacted people’s lives?
Isn't it just easy to waste money on the latest trends, shoes etc.. And not have to worry about paying it off at the end? Well it won’t seem like that when you start paying weekly expenses, monthly debts, and have a little fun and then have no money left over on the side. Well that is the role of a financial counselor to help people Earn, Save, and Spend. A lot of people are willing to go into debt to buy what they want and that is why a lot of people are in debt, “At more than $14 trillion, America's debt might seem abstract, a …show more content…
During the meeting with the member the counselor keeps focus on finances by controlling the interview and interactions with the members. The counselor should always ask questions to keep the member engaged in the financial counseling process. After the counselor should manage a workable budget which is one that manages spending, pays down debt, and builds savings in a way that is suitable for the member. Also the best way a counselor can effectively motivate the member to stick to the spending plan is to remind the member of the positive consequences of that plan, there’s also the counselor creates a “cash envelope method” , to help limit the members spending, where cash is divided into envelopes labeled by spending category”.(“Cuna, Financial Education Counseling”).
There are three types of financial counseling. The first one is Remedial financial counseling. “Remedial financial counseling is used when a client experiences a state of financial, emotional, or personal discomfort. Also it helps cope with financial problems due to debt, overspending, and or other issues”. (Financial counseling, “Personal Financial Counseling Terms and …show more content…
People are allowing bills and expenses to claim larger and larger portions of their income, and as they do, debt levels are rising. There’s nothing wrong with pursing the things you want – but doing so without regard to your security creates financial risks, promotes debt, and is the main reason so many people are unnecessarily living from paycheck to paycheck. (Money Crashers).Adjust your personal savings to suit your current circumstances. Figure out what’s comfortable by calculating all your bills and necessary expenses. See how much money you have left and use that as spending