Accredited Financial Counselor: An Introduction

Rate this post
Accredited Financial Counselor: An Introduction

The Association for Financial Counseling and Planning Education has established a brand-new professional degree geared for financial planners. This credential will be recognized all around the world. Financial counselors have the opportunity to get hands-on training in all aspects of personal finance as part of the Accredited Financial Counselor (AFC) credential program.

This certification, on the other hand, is not a carbon copy of others, like the Certified Financial Planner® or the Chartered Life Underwriter certifications. However, it does supplement the CFP® in a number of areas, while at the same time being able to function independently as a credential in its own right. In this article, a comparison is made between the curriculum and certification process required for the CFP® mark and this distinction. (You need to have some experience in the field before you take this test.) See also: How to Prepare for the CFP Exam.)

Key Takeaways

  • The title of Accredited Financial Counselor is a relatively recent certification in the field of financial planning, and in compared to other distinctions such as the CFP®, it receives a comparatively small amount of attention. In spite of this, its significance cannot be overstated for the vast majority of the United States’ middle- and lower-income inhabitants. To get more knowledge about the AFC certification, go to the website located at http://www.afcpe.org/.
  • The title of Accredited Financial Counselor is a relatively recent certification in the field of financial planning, and in compared to other distinctions such as the CFP®, it receives a comparatively small amount of attention. In spite of this, its significance cannot be overstated for the vast majority of the United States’ middle- and lower-income inhabitants. To get more knowledge about the AFC certification, go to the website located at http://www.afcpe.org/.
  • The title of Accredited Financial Counselor is a relatively recent certification in the field of financial planning, and in compared to other distinctions such as the CFP®, it receives a comparatively small amount of attention. In spite of this, its significance cannot be overstated for the vast majority of the United States’ middle- and lower-income inhabitants. To get more knowledge about the AFC certification, go to the website located at http://www.afcpe.org/.
  Applying to Mortgage Lenders: How Many Are Necessary?

Founding Organization

The Association for Financial Counseling and Planning Education is a non-profit organization that works to promote financial education and aids in the training of financial educators and counselors. Its name comes from the fact that both of these professions involve counseling and financial planning. 1 It is entirely supported by its members and, in both intention and execution, it is comparable to the CFP® Board, despite the fact that it is not nearly as well-known. However, there are a few significant differences between the designations, which we will go into more detail about in the following paragraphs.

Members include university educators, private practitioners, military and government counselors, and representatives from various financial interest organizations such as America Saves, FINRA, the FTC, the IRS, NEFE (The National Endowment for Financial Education), the SEC, and the U.S. Treasury. The majority of the membership is comprised of individuals who hold advanced degrees in their respective fields. Members are entitled to discounts on conferences, as well as quarterly bulletins and research publications. 21

A minimum of one thousand hours of experience working as a financial counselor is required of AFC candidates.

AFC Credentials and Curriculum

Before being awarded their certifications, Accredited Financial Counselors, just like their CFP® counterparts, are required to meet certain requirements pertaining to their education, experience, and ethics. Candidates for the AFC are required to have a minimum of one thousand hours of relevant experience working in some capacity as a financial counselor. 3

According to this point of view, a someone might be considered a financial counselor if they provide personalized guidance to other people, aid in the training or education of clients or other financial planners, or if they supervise other financial counselors. This part of the criterion, on the other hand, is more stringent than the experience requirement of the CFP® Board, which mandates that candidates must have worked for three years in the financial industry in virtually any capacity, irrespective of whether or not they actually provided any kind of counseling to clients.

The requirements for the CFP® certification are far more difficult than those for the AFC, but the AFC program delves considerably further into issues of personal finance that are relevant to Americans of lower and intermediate incomes.

  Are Expenses Debits Or Credits?

Two Sections

The curriculum of the AFC is comprised of two different parts. The first part of this presentation covers material that is taught in the Certified Financial Planner® (CFP®) curriculum. This material includes retirement and estate planning, life and property/casualty insurance, stocks, bonds, and mutual funds, as well as personal income taxes. In addition to that, it discusses managing credit cards and debt, as well as budgeting and cash flow management.

The second module goes into greater depth than the CFP® program does in its examination of the process of financial counseling, listening and counseling skills, consumer fraud and credit reports, debt reduction tactics, and divorce-related issues such as child support, repossessions, bankruptcy, mortgages, and student loans.

The Certified Housing Counselor Credential

Those who are interested in obtaining the Certified Housing Counselor credential are required to fulfill the requirements of the program in addition to completing a third module that covers all aspects of residential housing. Some of the topics that are covered in this module include issues between landlords and tenants, property appraisals, contracts, rights and deeds, financing and taxation, the real estate and mortgage industries, and legislation.

Course Requirements and Exams

The cost of each AFC module is $425, in addition to an enrollment charge of $50 that is non-refundable. After all of the fees have been paid, the student will then be given access to the necessary study materials. After that, the student has a total of three years to complete all of the essential coursework.

Following the successful completion of each module, the student will submit an application to the AFCPE office in order to arrange the final exam at a site that is staffed by a certified proctor. The exam consists of 100 questions with multiple choice answers, and it typically takes around two hours to finish it. On the test, you need to get a score of 70 percent or more to pass (those who don’t pass have to pay an additional price of $125 to take it again).

  Can You Get Cashback With A Credit Card?

After getting the certification, certificants are required to participate in 30 hours of approved continuing education every two years in order to maintain their qualifications and keep their credentials current. The Chartered Financial Analyst (CFA) designation is often cited as the credential that stands out as being the most significant for those who work in the financial industry. 3

CFP® Vs. AFC

As was mentioned earlier, the curriculum offered by AFC places an emphasis on issues that are significant to customers with middle-income and lower-income levels. The majority of candidates for the Certified Financial Planner (CFP) designation receive training that prepares them to focus primarily on the needs of clients who have upper-middle-class incomes or more, whereas Accredited Financial Counselors are trained to concentrate on the particulars of debt, credit, and government assistance programs.

Those who are interested in obtaining the most comprehensive and well-rounded professional education possible in the field of finance may desire to investigate the possibility of obtaining both certifications. Those who are especially dedicated to educating people from lower-income communities may want to think about getting the AFC certificate instead of the CFP® if they are interested in financial planning. Candidates for positions with the American Finance Corps are qualified for a number of positions within the United States government that are connected to the provision of financial education and training.

Conclusion

The title of Accredited Financial Counselor is a relatively recent certification in the field of financial planning, and in compared to other distinctions such as the CFP®, it receives a comparatively small amount of attention. In spite of this, its significance cannot be overstated for the vast majority of the United States’ middle- and lower-income inhabitants. To get more knowledge about the AFC certification, go to the website located at http://www.afcpe.org/.

You are looking for information, articles, knowledge about the topic Accredited Financial Counselor: An Introduction on internet, you do not find the information you need! Here are the best content compiled and compiled by the smartinvestplan.com team, along with other related topics such as: Credit.

Similar Posts