If you’ve ever looked for a financial professional, you’ve probably encountered unfamiliar acronyms, also known as designations or credentials, following the candidates’ names. CPA, CFP®, CFA®, ChFC®: What do these letters mean and why are they important?
Anyone can call themselves a financial counselor, coach, advisor or planner, but a credential often demonstrates a higher level of education, specialty or commitment. In many cases, the credentialing process is like going to school for a specialized program.
That said, all credentials are not created equal. A reputable certification program requires rigorous education and examination, field experience, an ongoing commitment to continuing education, and abidance by a high code of ethics. Some programs raise this standard by demonstrating compliance with an accrediting body. For instance, in the field of financial counseling, coaching and education, the Association for Financial Counseling and Planning Education® (AFCPE®) is one of the most respected organizations offering certifications. AFCPE® also connects financial professionals across the continuum to ensure that individuals and families, like yours, can navigate the “alphabet soup” and have access to the highest standard of financial advice, at any stage of life.
There are many financial designations, but the following are some of the most common and cover a range of services to meet the needs of most Americans:
AFC® – An Accredited Financial Counselor® has expertise across the client’s entire financial life-cycle, so they are able to counsel clients at any point in their lives. An AFC® can help individuals and families successfully navigate a financial crisis, overcome debt, modify ineffective money management behaviors, build an effective spending plan and provide a strong financial education foundation to meet both short-term needs and long-term goals.