User:Chance Nyi/sandbox

A financial coach uses the basics of personal money management to focus on behavioral change and accountability to a client-driven spending plan related to their personal finance, or understand their emotions around money which may have created obstacles to good financial management.

Definition
A financial coach is a professional who focuses on fundamental financial issues or habits. A financial coach provides the client the knowledge and skills that will help identify their financial goals and collaborates with them in developing an action plan and taking appropriate steps to achieve those goals.

Overview
A financial coach does not fix problems for the client, but rather they support clients in making their own decisions about their goals and actions. A financial coach can be confused with a financial planner or a financial adviser. While they all work with clients to help them make decisions about money, a financial coach only focus on areas of financial management rather than investments and wealth-building, unless she or he is licensed as a certified financial planner (CFP).

Training and Tools
Financial Coaching is an emerging field that has been growing over the last decade as an approach for supporting the financial capability of individuals across income levels and diverse populations. It has evolved to be recognized as a separate form of practice than financial planning or financial advising because it is still an unregulated field while the former practises require licensing. Nationwide, organizations are actively working towards making the field more professional by doing research and determining the best techniques for success and possible key indicators for better practices. The not-for-profit organization, the Association for Financial Counseling & Planning Education (AFCPE) created in October 1984 and the television personality, Dave Ramsey provide educational and training material for better financial coaching techniques. Government Agencies such as the Consumer Financial Protection Bureau (CFPB) have taken initiative in creating community based financial literacy programs by using customized financial coaching plans. Research Institutions like the University of Wisconsin-Madison Center for Financial Security (CFS), as well as NeighborWorks America (NWA) have released a training rubric capturing the common components of financial coaching practises and skills.

skills

 * Active listening
 * Brainstorming
 * Cognitive reframing
 * Observing the Client's goals
 * Examining discrepancies between what clients say and what they do
 * Requesting specific actions

Framework
COACH Model
 * Client-driven– The coach guides the client to define his/her personal financial goals.
 * Ongoing assessment of current situation – The coach asks the client where he/she is on the path toward achieving those goals, and explores strengths and challenges.
 * Action planning – The steps required for the client to get from here to there are outlined.
 * Checking – The plan includes mechanisms to keep on track, a timeframe for meeting the goals and how to report back to the coach.