What Is an Accredited Financial Counselor (AFC)?   

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 understands how 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.

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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®), a chartered financial analyst (CFA) and a Chartered Financial Consultant (ChFC), among others.

An 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. They continue to support 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. 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 (AFC) 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. They also need to submit three reference letters to qualify for consideration for an AFC designation.

There are several 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 ($950-$1,800) ¹ . Secondly, there’s a Financial Education Challenge option ($875 to $2,025) ² and a Professional Designation option ($625 to $1,975) ³ . Applicants must complete those within one year of registration. In addition, there is a university program option ($$450-$550). ⁴

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. They are also free to pursue other certifications.

To maintain an AFC designation, professionals must complete 30 hours of continuing education every three years. They also must pay an $85 annual fee. ⁵

Services an Accredited Financial Counselor (AFC) Provides

An AFC trains across several core personal finance disciplines. These include budgeting, debt management, savings strategies, credit improvement, and basic financial planning. The AFC credential emphasizes financial education, behavior change, and helping clients build a stable financial foundation. Other designations may be more focused on investment management or complex tax planning,

Clients working with an AFC can typically expect services such as creating a personalized budget, developing a debt repayment plan, improving credit scores, building an emergency fund and setting achievable short- and long-term financial goals. An AFC may also help clients navigate financial hardships by identifying available resources and prioritizing next steps.

The AFC credential equips advisors to address situations commonly faced by low- to middle-income individuals and families. These could include managing student loan debt, recovering from financial setbacks, breaking cycles of overspending or simply learning how to manage money more effectively. AFCs frequently serve military service members and their families, because military financial readiness programs recognize the designation as legitimate.

An AFC’s expertise may be most relevant for a first home purchase on a modest income, transitioning off government assistance, consolidating high-interest debt, or coaching young adults on foundational money skills. An AFC could also be a strong fit for someone who feels overwhelmed by their financial situation. They may need structured guidance before they are ready to work with an investment-focused advisor.

Because the AFC credential is rooted in counseling and education rather than investment management, the scope of advice an AFC provides tends to focus on cash flow management, debt reduction and financial literacy. Clients with more complex needs around retirement planning, tax optimization or investment portfolio management may benefit from working with an AFC in combination with a CFP® or other investment-focused professional.

How Much Does an Accredited Financial Counselor (AFC) Cost?

Financial professionals who hold an AFC designation may use a variety of fee structures. It depends on their practice, employer, and client base. Common arrangements include hourly rates, flat fees for specific engagements, and monthly retainers. In some cases, they base their fees on assets under management (AUM). According to Kitces Research on how financial planners structure and price their services, fee models across the advisory industry vary widely. They depend on the complexity of services offered, the advisor’s credentials, and the type of firm ⁶ .

Because AFCs often serve low- to middle-income clients, their fee structures may differ from those of advisors who primarily manage large investment portfolios. Hourly rates and flat fees tend to be more common among AFCs, as many of their clients may not have significant investable assets that would support an AUM-based model. Some AFCs work within nonprofit organizations, military financial readiness programs or employer-sponsored financial wellness initiatives, where their services may be available to clients at little or no direct cost.

How Fee Structures Work

Fee structures can also vary based on the complexity of the engagement. A single budgeting session may cost less than an ongoing debt management plan that includes regular check-ins and accountability coaching. Advisors who hold multiple credentials, such as both an AFC and a CFP®, may offer a broader range of services at different price points depending on the scope of work involved.

To understand how a specific AFC structures their fees, prospective clients can review the advisor’s Form ADV Part 2 if the advisor is a registered investment adviser. This document is required to be filed with the SEC and is publicly available through the SEC’s Investment Adviser Public Disclosure database. Form ADV outlines an advisor’s compensation methods, potential conflicts of interest and the services included in their fees ⁷ . However, not all AFCs are registered investment advisers, so this document may not be available for every practitioner.

Before engaging an AFC, it could be helpful to ask about total costs upfront. Questions to consider include how the advisor charges for their services, whether there are additional costs beyond the quoted fee, what services are included in the engagement, and how often fees may be reviewed or adjusted. Understanding the full cost structure in advance can help clients make a more informed decision about whether the advisor is a good fit for their financial situation and goals.

AFCs vs. CFPs®

Though the AFC and CFP® designations may seem similar, there are a few important distinctions. The CFP® is the more well-known designation of the two. A CFP® can advise clients on financial matters such as financial planning, taxes and retirement. Alternately, an advisor with an AFC designation will focus more on assisting clients with financial challenges. Those may include paying off debt and correcting damaging money management habits.

While either of these designations stand alone, some financial professionals choose both. Some experts believe that a CFP® designation denotes a financial professional better suited to a high-income individual. Meanwhile, a professional with an AFC designation is likely may be more helpful to low- and middle-income clients. The latter may provide a professional with a more well-rounded education.

Some consider the process of obtaining a CFP® designation more difficult than that of an AFC designation.

Bottom Line

A financial professional who’s earned the AFC designation understands the importance of establishing sound financial principles and has the training to help educate people on their value. The AFC exam has 165 multiple choice questions and candidates have three hours to complete it. The AFC is similar to the more well known CFP®. However, there are several key differences. Additionally, a finance professional may choose to pursue one or both of these certifications.

Financial Tips

• If you’re under financial stress and think an AFC can help you, perhaps consider a financial advisor with those credentials. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Did credit card debt bury you and leave you uncertain where you should start digging yourself out? SmartAsset’s credit card calculator can tell you what you’ll need to do to pay down that debt.

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