Accredited Financial Counselor (AFC) is one of many certifications and designations that financial professionals can earn. The AFC indicates that a professional values sound financial principles and is trained to teach people their worth. Here’s what it takes to get this designation, how it differs from other popular designations, and which clients it serves best.
Accredited Financial Counselor (AFC): The Basics
If you have a financial advisor, then you’re probably familiar with the many designations these professionals attach to their names. They can be a Certified Financial Planner (CFP) to a Chartered Financial Analyst (CFA), even a Chartered Financial Consultant (ChFC), among others.
An Accredited Financial Counselor (AFC) is one such designation. It comes from the Association for Financial Counseling and Planning Education (ACFPE), a nonprofit centered on financial education, counseling, and coaching.
While targeting the basic tenets of sound personal finance, an AFC designation also denotes a professional’s other abilities. It indicates they can educate clients on financial principles, assist clients with paying off debt, and help identify and change poor money management habits. It also suggest that a professional guides clients along a more successful path to their financial goals and supports clients as they work through financial challenges.
As a result, a financial professional with an AFC designation is a solid choice to middle- to low-income clients, since many of their guiding tenets focus on paying off debt, reversing bad money habits, and forging a path to financial security and, eventually, financial prosperity.
Accredited Financial Counselor Requirements
AFC candidates must fulfill the education requirements, pass the AFC exam, and meet AFCPE’s experience guidelines. As a result, candidates must complete at least 1,000 hours of financial counseling and submit three reference letters before being considered for an AFC designation.
There are several different ways to fulfill the educational piece of this designation. Firstly, a self-paced study option that must be completed within three years from the date of registration ($1,350-$2,000). Secondly, there’s a Financial Education Challenge option ($800) and a Professional Designation option ($1,075 to $1,625). Those must be completed within one year of registration. In addition, there is a University program option ($490) and a Distance Learning Program ($490).
The AFC exam has 165 multiple choice questions. Consequently, candidates have three hours to complete the computer-based test. Candidates receive test results immediately after the exam. If you fail the exam, however, you have to wait 30 days until you can take it again. Candidates can take the exam up to five times.