What is Financial Counseling? (1285)

Financial counselors help people learn to manage their own financial resources. As a process, financial counseling involves at least two people -- the person who counsels and the person or persons being counseled.

Financial counseling usually extends over a period of time, since most true change does not take place immediately. Ultimately all decisions are left up to the person being counseled.

Financial counseling differs from financial planning. Financial planning involves setting financial goals and objectives, developing an action plan, and using assets to implement the financial plan.

Financial counseling, on the other hand, involves reorganizing financial management attitudes and practices so assets can be found for financial planning purposes. Financial counseling may be needed before financial planning can take place.

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.

For information about financial counselors in your area, contact the non-profit National Foundation for Credit Counseling at 1-800-388-2227.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

Feel free to forward, post or reprint any of the "Solutions" in their entirely, but please credit http://www.solutions.psu.edu/ as the original source of information, and please do not change the content.