Financial counseling typically involves financial problem solving, setting immediate and long-range goals, cash flow budgeting, record keeping, and perhaps debt restructuring through negotiation with creditors. Whenever a change occurs, planned or unplanned, financial counseling may be needed. Better yet, seek financial counseling when change is anticipated, such as a new job or move to a different location, or retirement. Since change is inevitable, the need for financial counseling exists for almost everyone at some point in life. Often there is more than one reason to seek financial counseling.
Many people lack the knowledge and skills necessary for successful financial management.
There are four financial reasons that motivate people to seek help. First are income-related problems, including unemployment, layoffs, underemployment, illness or accident, family abandonment, retirement, death, divorce, and irregular income. Expense problems are the second of the four financial reasons to solicit financial advice. Such changes include divorce, a new family member, a new home, or a different job for a breadwinner. The third financial reason is credit use or general debt management.