114. When Clients Call You Their “Financial Therapist”: Setting Professional Boundaries

If you've been coaching for any length of time, you've probably experienced this. A client introduces you as their financial therapist or thanks you for their financial therapy session. It might seem like a compliment, but there's something important we need to address.

Money is deeply emotional. When we help clients work through their financial challenges, we're often helping them process feelings like shame, fear, anxiety, and guilt. This emotional component can make our work feel therapeutic, even though we're not providing therapy.

But there's an important distinction between what we do as financial coaches and what therapists do. Understanding that difference actually makes us better at our job and helps us serve our clients more effectively.

Some coaches feel uncomfortable when clients call them therapists because they worry about overstepping professional boundaries. Others feel flattered and take it as a sign they're providing meaningful support. Both responses make sense, but these moments are actually opportunities.

When someone calls you their financial therapist, it's a chance to help them understand what coaching really is and set clear expectations about how you work together. And it’s important to be crystal clear about your role and be confident in what you do (and don’t do).

This isn't about diminishing the support we offer or making our work seem less meaningful. Financial coaching absolutely changes lives. It's about being intentional with our professional boundaries in a way that actually serves our clients better.

The coaches who thrive understand when their clients might need something they can't provide, and they see making referrals as professional integrity, not failure. They've learned how to acknowledge the emotional aspects of money while staying firmly within their coaching role.

Being clear about the distinction between coaching and counseling doesn't take away from what we do. It actually helps us do it better.

Links & Resources:

• Ultimate Growth Guide
• Join the Facebook group

Key Takeaways:

• Coaching focuses on the present and future while counseling explores the past. This timeline difference shapes everything about how you work with clients.
• You don't tell clients what to do, you help them discover what they want to do. Financial coaches act as sounding boards, not financial advisors making recommendations.
• The basic presumption of coaching is that clients are mentally and emotionally ready to receive guidance. They're in a good place to make changes toward their goals.
• Money is deeply emotional, which makes coaching feel therapeutic even though it's not therapy. Acknowledge the emotions without stepping into a therapeutic role.
• Making a referral isn't a failure, it's professional integrity. Recognizing when clients need mental health support shows genuine care for their wellbeing.
• Use it as a teaching moment when clients call you their therapist. Say, “I appreciate that our work feels supportive, though as a coach, my focus is helping you build financial skills.”
• Include the coaching vs therapy distinction in your onboarding materials. Set appropriate expectations from the start with clear explanations in your welcome packet.