Financial Coaching

By Kaitlyn Szabo • July 12, 2022

With today’s increasing costs and the loss of COVID financial support, many of us are finding it harder to live within a budget, let alone save for emergencies and the future. Fortunately, our community has compassionate and knowledgeable financial coaching programs that help people set and reach their unique money goals.

What is a financial coach? 

A financial coach meets regularly with individuals to encourage them and monitor their progress toward their unique financial goals. Put another way by NerdWallet, financial coaches often assist their clients with the behavioral and emotional components of managing money. They can help you unearth what drives your financial decision-making and create a healthier attitude that leads to better money habits.

What’s the difference between coaching, planning, and counseling? 

With financial coaching, the client does the hard work. In other words, the financial coach is an accountability partner, champion, and cheerleader. It’s like having a personal trainer – they won’t do crunches or lift weights for you. Instead, they will motivate and support you through the process. On the other hand, financial counselors (like our partners at LSS Financial Counseling) focus on specific issues like getting out of credit card or student loan debt. Lastly, financial planners help people manage their wealth and investments for the long term. They are also highly regulated and specialize in assisting with large-scale goals like retirement or purchasing a home.

How do I know if financial coaching is right for me?

To get the most out of working with a financial coach, be sure you can answer “Yes” to each of the following:

• I am not actively navigating a financial crisis and am ready to look to the future.
• I have an idea of a goal to work toward (like buying a home, making a budget, or building savings).
• I am ready to do the ongoing work to change my financial habits.
• I am willing to let someone else in and be vulnerable about my relationship with money.

Who offers financial coaching? 

Many nonprofits (like Build Wealth Minnesota, EMERGE, CAPI, or PPL) and counties (like Dakota County) in Minnesota offer financial coaching. Additionally, here are some other programs to check out:

• Prepare + Prosper offers a free, volunteer-based financial coaching program called Money Mentors for singles making under $45,000 or families making under $65,000 in a year. Clients meet monthly with a trained volunteer financial coach for at least six months, plus optional community peer sessions. 
• Thrivent offers a free online program, Money Canvas, to help you build healthier budgeting, saving, and spending habits through three virtual sessions with a Money Guide.
• The Association for Financial Counseling & Planning Education has certified Financial Fitness Coaches^@  available to offer free and unbiased one-on-one virtual financial counseling sessions. They can also answer your financial questions and develop a unique plan for your goals and needs.

Money Management E-Newsletter: June 2022