CFP® Certification and Exam Requirements

High stability, high satisfaction, and high salary.

Those are just a few phrases you could use to describe the career of a Certified Financial Planner™—and it isn’t anecdotal. Those phrases are based on statistics and facts.

But you already knew that—and that’s why you’re here. Because you deserve a job you truly love.

If you’re serious about a career in financial planning, there are few paths more lucrative and rewarding than obtaining your CFP® certification. Read on to learn everything you need to know about CFP® certification and exam requirements to see if this is the perfect career path for you.

Key Takeaways:

• Education Requirement: To pursue CFP® certification, you’ll need a bachelor’s degree from an accredited college or university and a CFP Board-Registered Program completion.
• Professional Experience: To qualify, you’ll need either 6,000 hours of relevant financial planning experience or 4,000 hours in an approved apprenticeship role.
• Pass the CFP® Exam: The exam is six hours long, multiple-choice, and covers all essential areas of financial planning, including tax, retirement, and risk management.
• Ethics Requirement: CFP® certification requires a signed ethics declaration and a background check to ensure professional integrity and client trust.
• Continuing Education: CFP® professionals must complete 30 hours of continuing education every two years to stay certified, two of those hours for CFP Board-approved ethics coursework.

CFP® Certification Requirements: A Step-by-Step Guide

The CFP® certification shows that you’re a top-tier financial planner with an advanced financial planning skillset. It’s highly desirable in the financial industry and opens doors for financial professionals to serve individual clients, families, and businesses more effectively.

Here are the five steps you need to take to acquire—and keep—that coveted CFP® designation.

Step 1: Education Requirements

Think of it in the way that nice neighborhoods require everyone to have a clean, green lawn: because one overgrown, brown lawn lowers the value of the entire neighborhood. For the same reasons, the CFP® certification has a strict education requirement to ensure all candidates’ knowledge and skill sets are up to par.

Here’s what you need to get started:

• Bachelor’s Degree: You’ll need a bachelor’s degree from an accredited university. It doesn’t have to be in financial planning, but a degree in business administration, finance, or a related field can be helpful.
• CFP Board-Registered Program: You must complete a specialized course of study in financial planning principles. This program, available at many accredited universities, covers areas like tax planning, estate planning, and retirement planning.
• Certification Education Requirements: If you’ve already completed some financial education, you might qualify for an accelerated path by proving relevant coursework through a CFP Board Registered Program. Some courses and degrees—such as Chartered Financial Analyst (CFA) or Chartered Financial Consultant (ChFC)—may count toward your education requirements.

Step 2: Professional Experience

After meeting the education requirements, you’ll need real-world experience. CFP® certification requires you to show a solid track record of hands-on financial planning experience. There are two pathways:

1. Standard Pathway: Accumulate 6,000 hours (about three years) of professional experience related to financial planning.
2. Apprenticeship Pathway: Complete 4,000 hours (about two years) of apprenticeship experience under the direct supervision of a CFP® professional.

Your experience can come from various activities, such as helping clients set financial goals, creating comprehensive financial plans, or offering hourly services in areas like insurance planning and tax planning.

Step 3: CFP® Exam Requirements

Now comes the biggest hurdle for aspiring financial advisors—passing the CFP® exam. The CFP® exam requires candidates to test their critical thinking and understanding of the financial planning process, and it has a notoriously low pass rate of around 65%.

Here’s a quick breakdown:

• Multiple-Choice Format: The CFP® exam is a rigorous multiple-choice test designed to assess how well you’ve mastered relevant topics from investment planning to behavioral finance.
• Length and Timing: This exam takes roughly six hours, split into two three-hour sections with a break. Don’t underestimate it—first-time exam takers often say it’s one of the toughest parts of becoming a CFP®.
• Core Topics Covered:
  • Financial planning and budgeting
  • Tax and insurance planning
  • Retirement and estate planning
  • Investment analysis and portfolio management
  • Risk management and ethics

Tips to Pass the CFP® Exam

• Get a CFP® Exam Review Course: You’ll need study materials and guidance to pass, and the best way to get them all in one place is with a top CFP® review course. My personal favorite is from Kaplan.
• Practice Exams: Take plenty of practice exams. These practice tests, also called mock exams, are excellent for identifying weak areas, and they get you used to the exam’s timing and question style.
• Focus on Your Strengths and Weaknesses: Everyone has strong areas and areas that need extra work. Don’t waste time on studying your strengths, especially if you have a short study window. Focusing on your weaknesses improves study efficiency and boosts your chance to pass.
• Manage Your Time: With six hours, time management is critical. Get comfortable with the timing of each question through practice.
• Learn MCQ Hacks: The best part about MCQs is that they’re the easiest question type to “game.” You can often guess the correct answer, even if you don’t truly “know” it. There are tons of great multiple-choice question tips and tricks out there, so do your research!

Passing the CFP® exam is no small feat, but with preparation, you’ll have a much better chance of success. The sooner you begin studying, the more likely you’ll pass.

Step 4: Ethics and Conduct Requirements

To maintain the CFP® certification’s high standards, the CFP Board has an ethics requirement. Personally, I think this should be a requirement in more careers than it is! After all, having the responsibility to manage a client’s money means you’re managing their livelihood and their future.

Before earning your certification, you’ll need to sign an ethics declaration stating that you’ll uphold the CFP Board’s professional ethics guidelines. This declaration means you agree to put clients’ needs first and adhere to a fiduciary duty to act in clients’ best interests when giving financial advice.

Some financial planners make commissions from partners. This declaration means that you promise to only suggest the best fit for your clients’ needs—not whatever suggestion will fill your own bank account.

Also, you’ll have to undergo a background check to ensure you have a clean record. This check focuses on professional conduct, so financial planners with any serious ethical violations might face certification delays or denial.

Step 5: Continuing Education to Keep Your CFP® Certification

If you want to become a CFP® professional, you’ll need to dedicate yourself to a lifetime of learning. To keep your certification, you’ll need continuing education credits.

Continuing Education (CE) Requirements

• CE Hours: Every two years, you’ll need to complete 30 hours of continuing education credits, with two of those hours focused on CFP Board-approved ethics coursework.
• Focus Areas: CE programs can cover a variety of topics in financial planning, from identity theft protection to changes in tax laws, giving you up-to-date knowledge to serve clients effectively.

Maintaining your certification through CE credits ensures that CFP® professionals stay sharp and adhere to best practices throughout their careers. Further, classes can help you in areas like networking and relationship-building so you can make more money while helping more people.

Why Pursue CFP® Certification?

So, is it worth it to become a CFP®? Here are a few reasons why the answer is 100% yes:

• Six-Figure Salaries: CFP® professionals often make annual salaries in the six-figure range. The median total compensation for financial planners in 2023 was a staggering $192,000. CFP® professionals also earn 10% more than uncertified financial planners on average, so it’s well worth the time and money investment to get your financial planning certification.
• Happy and Healthy: 85% of Certified Financial Planners™ report high career satisfaction, specifically in areas including stability, work/life balance, advancement opportunities, and of course, compensation.
• Increased Marketability: CFP® certification demonstrates that you’re a credible, knowledgeable financial planner who follows the highest standards in the industry, which appeals to clients and employers alike. It’ll be easier to get hired and acquire clients, and you’ll make more money as a result.
• Career Flexibility: You can work with a wide range of clients in personal financial planning, retirement planning, and even wealth management. Many financial advisors report that CFP® certification opens doors to better job opportunities and salary increases.
• Enhanced Knowledge and Skills: The certification process equips you with advanced skills, from risk management to estate planning. This depth of knowledge strengthens your financial planning process to help clients achieve their goals so you can perform your job with confidence.

Conclusion

High stability, high satisfaction, and high salaries for a CFP®—what’s not to love? CFP® certification is a fantastic investment if you’re committed to a rewarding career in financial planning.

But that doesn’t mean it’ll be easy—you’ll need to meet education and experience requirements, pass the CFP® exam, and maintain high ethical standards. But if you’re serious about building a financial career where you can make a difference in the lives of your clients, becoming a Certified Financial Planner™ is a path worth pursuing.

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