How To Get A Certificate In Financial Planning

A financial plan is a detailed description of your current financial status, your financial goals, and any techniques you’ve devised to attain those goals. Individuals and organizations use financial advisors to assist them to achieve their long-term financial goals.

According to the Bureau of Labor Statistics, personal financial advisors, including financial planners, earned a median annual salary of $89,330 in 2020, making it a high-paying career in the finance niche.

Companies prefer candidates who have a financial planner certification or a bachelor’s degree in business or finance.

Many financial planners earn certificates in financial planning to advance in the industry, so if you’re curious about how to get a financial planning certificate, then this piece Is for you because in this article we cover extensively how to get a financial planning certificate.

What Is a CFP Professional?

A CFP professional is a financial expert who assists customers in developing comprehensive plans for achieving long-term financial goals such as retirement, college tuition, company start-up, and purchasing a home, among other things.

Simply put, a Certified Financial Planner is a financial advisor with financial planning certificates. They assist businesses and individuals in establishing financial goals and determining how to channel their funds in various vehicles, including saving and investment plans, depth, emergency, and spending plans, and all other aspects of financial well-being.

According to a 2017 CNN Money analysis, Certified Financial Planner jobs are predicted to experience a 30% expansion over the next ten years, making it a great career option for young financial professionals.

Now that you know what a CFP professional is, let’s look at a few reasons why you should earn a financial planning certificate.

Why Become a Financial Planner?

The Bureau of Labor Statistics predicts a 15% increase in financial adviser jobs from 2016 to 2024, which is much more than the national average (7 percent ).

The following are some of the most important advantages of being a financial planner:

High and unlimited earning potential

CFPs charge an average of $1,870 for a comprehensive financial plan, $234 for hourly services, and $5,530 for annual retainer services, according to a 2018 Kitces Research poll on financial planning.

While CFPs do not have a set fee, it is frequently higher than what a non-certified advisor would charge.

The income potential of most financial advisors is limitless. Fee-based, commission-based, or a combination of both financial planners exist.

This means that your earnings are determined by the quantity of new business or recurring revenue you generate each year.

Furthermore, some online financial advisors that provide access to CFPs charge a tiny percentage of your assets under management, usually between 0.3 and 0.9 percent.

Providing Valuable Investment Advice

Consumers are frequently hesitant and perplexed about whether an insurance or investing option is best for them.

The most important role of a financial planner is to educate and develop financial plans so that customers may make sound financial decisions and channel their funds into various plans, such as saving and investment plans, depth, emergency, and spending plans, and everything else related to money.

Flexibility in Work Schedule

Finding a balance between work and personal life may be difficult when starting a new job, and financial advisors are no exception. However, if an advisor has a customer base, the career allows for work-hour flexibility.

Seasoned advisers can schedule client appointments around their schedules and, with time, may be able to work less than a full 40-hour week.

Structured Creativity in Practice

Financial advisors have the chance to be innovative in their client acquisition strategies. While some organizations prioritize serving Millennials, others prioritize serving the Baby Boomer generation.

Another generation to serve is Generation X. Advisors can also choose to specialize in a specific type of clients, such as lawyers, doctors, or business owners.

They can also offer clients a wide range of products and services, such as financial planning, investment management, life or disability insurance, or retirement plans, allowing them complete control over their operations.

What Does a Certified Financial Planner Do?

CFP assists firms and individuals in developing and implementing a financial plan as well as determining their financial goals and discussing their present financial condition and risk tolerance.

A CFP can also help with everything from selecting specific investments to preparing for a down payment on a house and planning for retirement.

Some CFPs specialize in a particular topic, like divorce or retirement planning, whilst others work with certain clients, such as small-business owners or retirees. As a result, it’s vital to have an understanding of the services you require before selecting a CFP.

Now that you understand the primary responsibilities of a certified financial planner, let’s look at how you can obtain a financial planning certificate.

How to Earn a Financial Planning Certificate?

Becoming a CFP is not an easy route, and for good reason, helping people navigate their finances is an important job. On average, it takes between 18 and 24 months to become a CFP and if you already have an undergraduate degree it can cost a minimum of $4,000.

Other requirements are as follows:

1. Earn a Bachelor’s Degree

A bachelor’s degree is normally required for financial planner education. While some businesses prefer candidates with financial, accounting, or business degrees, many do not indicate a specific course of study.

You’ll need to take lessons in taxes, risk management, and investing to pursue a job as a financial planner. A bachelor’s degree takes four years to finish on average.

2. Complete On-the-Job Training

Students can work as entry-level financial planners after getting their financial planning certificate. For a year or longer, most employers want young graduates to work closely with more experienced financial counselors.

3. Attain Licenses

Certain financial planners must get state licenses or register with the Securities and Exchange Commission due to the unique nature of their work (SEC).

Professionals who provide particular investment advice and buy or sell insurance policies, stocks, or bonds directly, for example, may require additional credentials.

4. Earn Certifications in Financial Planning

A financial planning certificate can help you enhance your profession. Each applicant must have a bachelor’s degree, three years of relevant job experience, pass the CFP exam, and agree to a professional code of conduct to qualify.

5. Pursue an Additional Educational Degree

A master’s degree in business administration or finance can lead to expanded professional options, management positions, and higher income for a financial advisor. As a result, the higher you progress in your job as a financial planner, the better your prospects of advancing your profession.

Given that passing the financial planning examinations is a crucial need for receiving a certificate as a financial planner, let’s look at how to pass the CFP exam with ease.

How to Pass the CFP Exam?

Here are a few tips that can help you pass the exam:

Practice exam questions

Jim Kwik will say: “Practice makes better.” The more you practice, the more comfortable you will get with applying your information.

Solve problems with the same difficulty level as the actual exam to assess if you have fully mastered an area and where you may be making blunders. Practice questions can be found at the end of prep provider chapters, in prep provider bank quizzes, and on CFP Board practice tests.

Focus on learning when you study

The CFP exam is all about applying knowledge to real-world scenarios that you could face on the job. Twenty percent of the exam’s assessment is based on two case studies in which you must analyze a hypothetical client problem and decide on the appropriate next steps.

As a result, rather than focusing solely on memorizing, you should focus on mastering and implementing the subject.

Picture yourself passing

Often students become curious and panic before the commencement of big exams like this, and it’s natural to do that. However, try to visualize yourself answering questions competently and getting a great score.

Because what you see you can achieve and become, you can also practice positive affirmation to calm your nerves and put you in the right frame of mind.

Avoid cramming the night before the exam

Going over lists or doing entire practice exams might be psychologically taxing on the day before the exam, so avoid them. Instead, reread some of the curriculum’s more wordy sections, such as ethics.

Consider and imagine coaching customers in the future, and practice responses to questions they may ask.

Frequently Asked Questions About Financial Planning Certificate

The usual CFP exam registration fee is $825, although an early bird rate of $725 is available until six weeks before the registration deadline. In addition, there is a $925 late registration fee for the two weeks following the registration deadline.

Before or after completing the education program courses and becoming eligible for the exam, you can register for the financial planning certificate exam with CFP Board online using your smartphone.

If you register before you finish the coursework, you must send CFP Board proof of your completed coursework. CFP Board will notify you when your eligibility is confirmed.

Once you’ve earned your CFP certification, you’ll need to complete three renewal requirements every two years.

First, you must pay a non-refundable $100 charge for a background check.

Second, you must pay a non-refundable certification cost of $325.

Third, you must complete at least 30 hours of continuing education.

A certified financial planner is one of the many types of financial advisors. While “financial advisor” is a general term that does not necessarily denote any specific credential, CFPs hold a certification that ensures they have several years of experience and are held to a fiduciary standard.

The financial planning certificate exam is made up of 170 multiple-choice questions that cover the areas covered by the Principal Knowledge Topics. You’ll be asked three types of questions: stand-alone, short scenarios, and case studies.


When determining who to work with, it’s critical to evaluate an advisor’s credentials. Financial certifications show a financial advisor’s area of specialty and educational level. If you require tax counsel, for example, you should consult a certified public accountant.

Consider working with a professional financial planner or chartered financial consultant if you want to create a thorough financial strategy.

We hope this article has provided you with information about financial planning certificates.


Editor’s Recommendations

Leave a Reply
You May Also Like