What the heck is financial coaching?

Financial coaching is a fairly new and unheard-of concept here in my area of the country. However, and it took me a long time to realize this: I’ve been a financial coach for years! When I look at the kiddos who watched me with my cash envelopes as they work with their own cash envelopes, the young adults who proudly (and deservedly so) tell me they paid off their car loan, student loans, and credit card debt, and the friends who come to me for information on the basics of investing so they’re able to make smart and informed decisions with their 401(k), it’s finally dawned on me that I’ve been providing information, celebrating wins, encouraging through the hard things, discussing options, asking thought-provoking questions, listening without judging, and all those other ‘coach-y’ things this whole time. I think I’ve avoided taking the classes, earning the certificates, and referring to myself as a coach because, like I’ve always said, “I don’t math!” But when I realized the truth about the phrase, ‘financial literacy is only 20% numbers, but it’s 80% behavior’, I knew that calculus class I avoided taking so long ago wasn’t really needed after all. Financial coaching is all those things and more.

So, what isn’t financial coaching? The legal answer is “While coaching is designed to give you accurate and authoritative information in regard to the subject matter covered, it is provided with the understanding that the coach will not render specific legal, accounting, tax, real estate, counseling, or other professional advice.” So, I can help someone set up a long-term cash flow plan that will help them achieve financial freedom from consumer debt, educate them on the basics of investing so they can make informed decisions, and be well on their way to becoming an everyday millionaire, but I refer them to a financial advisor to advise them on which funds to invest in when they’re ready for investing. I can help guide a couple going through a divorce on a manageable way to financially co-parent their children, but I introduce them to a divorce attorney for the legalities of dividing their assets. When a family is facing financial disaster because they can no longer afford their mortgage payment, I can guide them on how to and who to work with in order to avoid foreclosure, but I refer them to a real estate agent to help them short sell their home.

In the end, the short answer is that a financial coach helps to take control of your finances, eliminate debt, build wealth, and find financial peace. But there’s so so so much more! And it’s the BEST. JOB. EVAH!!!!