The Certified Financial Educator (CFE) designation is one of the most prestigious in the world of finance. It is also one of the most difficult to acquire. The CFE is a highly sought-after title and qualification in the professional worlds of financial advising and management, accounting and auditing. The CFE designation is a highly respected and one-of-kind title awarded to an individual professional practitioner who has knowledge in the area of financial advising and/or management, accounting and/or auditing, and other financial services.
Candidates wishing to sit for the CFE exam must first complete the National Association of Securities Dealers (NASD) Certified Fraud Examiner (CFE) examination. To qualify for the exam, candidates must be registered members of the National Association of Securities Dealers. Candidates who pass the examination are awarded the Certified Financial Educator (CFED) designation. Candidates applying to sit for the CFE exam must register with the National Association of Securities Dealers and pay the registration fee. The registration fee covers the costs of study materials, which includes study guides and test books.
The duties of a certified financial educator and the duties of a certified financial analyst are quite different. A financial educator is responsible for developing financial education and teaching people how to manage their money and budgeting skills. Meanwhile, a certified financial analyst is responsible for advising clients on investing, banking, insurance, pensions, and money management and retirement planning.
Certified financial educators and certified financial analysts fulfill two very distinct roles. While a financial educator provides education and counseling to educate and guide people on managing their money and budgeting, a certified financial educator teaches financial education and encourages people to become financially educated. Both financial professionals interact with clients to discuss current financial situations, plan for future financial needs, and explore alternative saving options such as borrowing from friends or family. They also assist clients in creating a workable budget and financial plan. Some of the common tasks of the CFE include educating clients on how to obtain a loan and how to make payments on it; explaining the difference between financial planning and investment; and assisting clients in maintaining and building a savings account.
Candidates wishing to become certified financial educators or certified financial analysts must first complete the CFED examination. Once they have passed the examination, they may apply to become a CFE in the United States. Upon successful completion of the examination, candidates will be given a CFE number. Candidates wishing to become certified financial analysts should be aware that they will not receive a CFED designation immediately upon finishing the examination. To qualify for a CFED designation, applicants must demonstrate two years of experience teaching adult learners in financial services industry.
The CFE is responsible for analyzing and evaluating the financial situation of a company or organization. They prepare reports which provide the CFO with recommendations on how to improve the business's finances. To become a certified financial educator, one must demonstrate that he or she has taken classes related to basic accounting principles and that he or she has taken at least 500 hours of accounting study. CFEs can either be self-employed individuals or work for a CFO firm.
As part of becoming a certified financial educator, applicants must complete CFE continuing education. To be able to receive Continuing Education credits, applicants must pass the CFE exam. The CFE continuing education requirements vary from state to state. To be eligible for a CFE designation, applicants must complete the training requirements as well as pass the CFE exam.
Candidates wishing to become financial professionals need to be committed to continuous education as a requirement for CFE certification. It is also necessary to have a CFA, or a Certified Fraud Examiner designation, which qualifies the candidate for CFE designation. The CFA designation requires a minimum of five years of experience in an accounting position. CFEs with these qualifications are more likely to have their career advancement goals approved.