What Can You Do with a Master's in Financial Planning and Financial Psychology?
Maybe you’re a career changer who thinks being a financial planner would be a great fit for you, but you need more education. Or perhaps you’re already in financial planning, but you want to go back to school to become more marketable and earn the CFP® certification.
Or you could be fascinated by a relatively new arm of financial planning known as financial psychology.
If any of those scenarios sound like you, this article can help guide you to where you want to be. Creighton University's master's in financial planning and psychology is one of the few graduate business programs in the country with a heavy emphasis on financial psychology, and this degree could make you more competitive in the job market.
We sat down to discuss the master's in financial planning and financial psychology program and related career paths with Creighton University’s Ken Washer, DBA, CFA, CFPA, professor of economics and finance, and Bradley T. Klontz, Psy.D., CFP® professional, associate professor of practice in economics and finance.
What is financial psychology and why is it important?
Financial psychology is a relatively new field. It came to the forefront in 1979 when Daniel Kahneman and Amos Tversky developed prospect theory, which proposed that most investors tend to make decisions based on subjective reference points rather than objectively choosing the best option.
“Financial psychology goes beyond just behavioral finance and integrates other fields of psychology into financial planning, including multicultural psychology, developmental psychology, social psychology, marriage and family psychology, and others,” says Klontz. “It includes areas of conflict resolution, communication techniques and crisis intervention. It seeks to provide financial planners with the behavioral knowledge and tools they need to help their clients reach their financial goals.”
The CFP® Board lists “psychology of financial planning” as one of the eight principal knowledge domains covered in the CFP® exam.
Why is financial psychology important?
“The average American overspends and under-saves, and financial psychology helps us understand why,” Klontz says. “I've yet to meet somebody who doesn't know that they should save for the future and they shouldn't spend more than they make, but those are the two biggest problems the average American has around money.
“Financial psychology looks at what these universal human tendencies are and our biases are, how we look at the world, and how all that impacts our financial health.”
Financial psychology is an area of study that can help financial planners understand their clients and their actions.
“Financial psychology is very important to what financial planners do,” Washer says. “I could be the best financial planner in the world, but if I can't motivate somebody to take action on this plan, then I'm going to fail. You have to motivate and listen to people.”
What can you do with a master's in financial planning and financial psychology?
Financial planners work under many different titles, including financial advisor, investment advisor, wealth manager, financial consultant and, of course, financial planner. The specific job titles vary based on the company offering the service.
Financial planners can work for a variety of organizations, including financial services firms such as banks, broker-dealers, accounting firms, insurance firms, independent financial planning firms and investment firms.
The CERTIFIED FINANCIAL PLANNER® certification
One career goal for many in this field is earning the CERTIFIED FINANCIAL PLANNER® certification. Creighton’s online master's in financial planning and financial psychology program prepares you to earn the CFP® certification.
Awarded by the Certified Financial Planner Board of Standards, the certification is considered the gold standard for financial planners. People who earn the CFP® certification have met rigorous education and training standards and passed the CFP® exam. They must participate in continuing education programs to maintain certification.
“There aren’t a lot of schools that offer this master’s degree—one that’s completely online, focuses on financial psychology and prepares you to sit for the CFP® exam,” says Washer.
Who is a good fit for this program?
This type of master's degree program is a good fit for current and aspiring financial planners who want a deeper and more realistic understanding of human behavior and how it relates to financial decision-making or for those seeking to earn CFP® certification.
This program is also ideal for those who wish to transition to a financial planning career and have a bachelor’s degree but no prior experience. “And of course,” says Washer, “the program is great for recent graduates who have not yet taken the required coursework for the CFP® certification.”
Ultimately, Washer says, these individuals should want to help people make better decisions with their money. “They should be passionate about helping people,” he says. “That should be their objective.”
Creighton's graduate program focuses on financial psychology
Creighton is among an elite few who teach with a heavy emphasis on financial psychology at the graduate level, and our students are poised for success.
Learn more about the Creighton online Master's in Financial Planning and Financial Psychology. When you’re ready, request more information. A Creighton University Student success manager will be in touch.
Disclaimer: Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
