How Financial Coaches Can Help You With Money Management

Financial coaches work to teach clients money management skills, but they aren’t licensed to provide investment advice. Instead, they focus on providing education, tools, support, and accountability. Many of their clients need help with debt, poor spending habits, and savings goals. They often hire financial coaches to help them create budgets, pay off debt and build a solid financial foundation.

They Help You Make Better Decisions

Like a personal trainer, a financial coach helps clients discuss and establish positive money habits, then acts as an accountability partner as they enact those plans. They also assist clients in grasping the fundamentals of finance, such as the advantages and disadvantages of certain financial products. Financial coaches may focus on a particular niche. Often this area of expertise comes from their own experience, such as learning to save or finding an effective method for getting out of debt. Some coaches work with various clients, while others limit their client base to those seeking help managing a budget or preparing for retirement. The qualifications for financial coaching are less rigorous than those needed to become a certified financial planner. Still, some coaches have professional licenses or degrees in finance and other credentials that enhance their ability to provide guidance. Those considering the field should look to their own experiences for inspiration to see if this is something they’d be passionate about doing.

They Help You Set Goals

As great athletes need a coach to keep them on track and encourage them to stick with their strategy, financial coaches help clients create good money habits by helping them identify goals and choose the best method to reach them. Unlike financial advisors and planners, financial coaches don’t need formal licenses to practice; however, they often pursue counselor certification through the Association for Financial Counseling and Planning Education. A financial coach works with clients to understand their situation and behaviors, then helps them align their behavior with their vision of success. They also provide educational resources and empower their clients with knowledge while avoiding specific investment advice. A financial coach is more like a behavioral therapist than an adviser, which makes them an excellent option for people who need help improving their day-to-day money management skills. Financial coaches frequently work with their customers over an extended period, checking in weekly or monthly to assist their customers in staying on track.

They Help You Create a Budget

Financial coaches work with clients to create budgets and plans that reflect their unique strengths, weaknesses, goals, and lifestyle. They help clients change their money habits, allowing them to meet their goals and overcome challenges. Many clients of financial coaches want to break unhealthy spending patterns or accomplish long-term objectives like debt repayment or property ownership. These goals may take months or even years to achieve. Some people who call themselves financial coaches are Certified Financial Planners, which require additional education and a rigorous exam from the CFP board. Others work as licensed fiduciaries and must act in their customers’ best interests. These professionals typically charge higher rates for their services. When shopping for a coach, check out the fees they charge to ensure they’re competitive. Find someone who can tolerate your requirements and persevere with you until you achieve your objectives.

They Help You Stay Accountable

Financial coaches act as accountability partners to help you stay on track with your goals. It might include helping you set up a budget, develop healthy spending habits, or create savings strategies. They can also assist with debt repayment or retirement planning. Unlike financial advisors, they don’t give investment advice or manage your money.  Many people have a deep passion for being financial coach. They may have worked up from a challenging financial situation and want to show others how. Or, they might have a career in the industry and decide to make it part of their work life. The qualifications to become a financial coach vary widely and often include experience in the field and specialized training, like earning professional certifications or degrees.