Money-related stress is a universal experience that transcends income levels, influencing everyone from those struggling to make ends meet to those managing vast financial portfolios. However, the approach to managing this stress through financial therapy can vary greatly depending on one's income. In this blog post, we'll explore how individuals with a low-income can access and benefit from financial therapy, ensuring everyone has the tools to achieve financial wellness.

Picture of words on the ground representing financial stress and anxiety indicating the need for financial therapeutic support by a financial therapist in California.

Low-Income Individuals: Assessment, Accessibility, and Affordability

For low-income individuals, the primary barriers to accessing financial therapy are often trauma, cost, and availability. However, the benefits of first, mental health support or in conjunction with financial counseling for this group, can be transformative, providing crucial guidance on budgeting, debt management, and making the most of limited resources.

Assessing for and Treating Trauma

Assessing and addressing underlying trauma through mental health therapy is an essential step, particularly if you are low-income before you can fully engage with financial therapy. Often, financial struggles are intertwined with emotional and psychological stressors, which can stem from or lead to traumatic experiences.

By first accessing mental health support—available through community health centers, sliding-scale clinics, and online platforms offering affordable counseling—individuals, couples, and families can begin to heal emotionally. Below are some ways to access free or low-cost mental health services.

Substance Abuse and Mental Health Services Administration (SAMHSA): Offers a Treatment Provider Finder, 988 Suicide & Crisis Line, Veterans Crisis Line, and Online Support Material. Se habla Espanol.

National Alliance on Mental Illness (NAMI): Offers Support and education programs for families and individuals living with mental health conditions
211 or Internet Search - You can access free or low-cost mental health services through your county.
Cal Health and Human Services - Mental Health Resources for Youth
BeWellLine - Helps California Residents Going Through a Mental Health Crisis
Insight Timer - Free Meditation App

This foundational emotional stability can make it easier to tackle financial challenges, as it equips you with better-coping mechanisms and a clearer state of mind. Thus, prioritizing mental health therapy prepares you to more effectively engage with financial therapy, ultimately fostering a more comprehensive approach to your overall well-being. Below are programs or resources available for free or low-cost financial counseling.

Picture of a male with hands crossed smiling represents clarity and confidence after seeking support for financial trauma with a financial therapist in California.

Community Financial Programs and Non-profits

Many communities offer free or low-cost counseling through local non-profits or government programs designed to assist those in financial hardship. Some programs to look for programs include:

Financial Empowerment Centers partner with cities to offer low-cost or free financial counseling. Check if your CITY provides this service.
211 - Is a free information and referral service that connects people to health and human service organizations in their community 24 hours a day/7 days a week.
In the United States, several federal programs offer free financial coaching or counseling to help individuals manage their finances effectively. Here are some key programs:
Cooperative Extension System (CES): Operated through the U.S. Department of Agriculture, the CES offers a variety of financial education programs, including personal financial coaching in many states. Their programs often focus on budgeting, debt management, and financial planning.
U.S. Department of Housing and Urban Development (HUD): HUD offers free or low-cost counseling for issues related to homeownership, renting, default, foreclosure avoidance, credit issues, and reverse mortgages. These services are provided through approved housing counseling agencies.
Veterans Affairs (VA) Financial Counseling: For veterans and their families, the VA offers financial counseling as part of its benefits, helping with managing personal finances, resolving credit issues, and creating a budget.

Online Resources

Numerous websites and organizations provide free financial advice and tools that can help individuals understand and manage their finances better:

National Foundation for Credit Counseling (NFCC): NFCC is supported by government partnerships and provides extensive credit counseling, debt reduction services, and financial education through its member agencies.
Consumer Financial Protection Bureau (CFPB): The CFPB provides tools and resources for financial education, including guides on handling money, dealing with debt, and understanding consumer rights. They also offer information to help consumers navigate financial challenges.
Credit Karma: Offers free credit scores, reports, and insights, as well as advice on how to improve your credit. They also provide tools for spotting potential identity theft.
The Financial Literacy and Education Commission (FLEC): Operated by the U.S. Treasury Department, this site offers resources and tools to improve financial literacy through its MyMoney.gov website.
CashCourse.org: Part of the National Endowment for Financial Education, this website offers free courses, articles, tools, and other resources to help college students and young adults make informed financial decisions.
Khan Academy: Known for its educational resources, Khan Academy offers free courses on personal finance covering savings, investments, credit, and more, providing foundational knowledge in an accessible format.

Sliding Scale Fees

Some financial therapists offer sliding scale fees based on income, making it more affordable for low-income individuals to receive personalized advice and support.

Conclusion

If you're feeling overwhelmed by financial stress, consider exploring the financial therapy options available for your income level. Taking the step to manage your mental health and financial health is a crucial part of overall well-being.

Ready to Learn how Koru Financial Therapy can Support your financial wellbeing?

Koru Financial Therapy’s is committed to supporting access to quality mental health and financial counseling. To access Koru Financial Therapy services, which include individual, couple, family, or group sessions – follow the steps below:

Reach out to schedule a free 20-minute phone consultation.
Speak with Mariah, a certified financial therapist.
Start your journey to growth, strength, and peace.
Explore further Koru Financial Therapy or Next Gen Wealth & Wellbeing resources and posts.

Financial Therapy in California with Koru Financial Therapy provides treatment for financial anxiety, financial trauma, money management, and financial caregiving among others.

About the Author

Mariah is a seasoned Mental Health and Financial Therapist committed to helping individuals navigate the complex interplay between emotional well-being and financial stability. With a robust background in social work, psychology, and finance, Mariah specializes in offering therapeutic support and financial counseling across various income levels. Mariah is passionate about empowering clients by addressing underlying emotional issues that impact financial decisions and providing practical tools for managing financial stress. Through community outreach, workshops, group therapy, and one-on-one counseling, Mariah strives to make financial therapy accessible and affordable, especially for those in low-income brackets.