Written By: Victoria M. Shelton, Thomas E. Smith, and Lisa S. Panisch
Financial therapy is used to address the psychological, emotional, and behavioral components involved in the
process of learning and utilizing new financial literacy skills. This study describes the use of a manualized
financial therapy financial therapy intervention, the Five-Step Model, as it is piloted in a group setting. Current
economic theories support the use of an intervention model that differs from traditional financial literacy
teachings. Behavioral economics and the Transtheoretical Model of Behavior Change is used as a foundation for
the Five-Step Model. A case study illustrates the key principles and effectiveness of the intervention model.
Reflections and feedback from the members of the group are provided, along with a discussion of implications
and directions for further inquiry.