financial coaching: an overview
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Financial Coaching: An Overview. J. Michael Collins Prepared for presentation at the Centers for Working Families, July 22-23, 2010. Typical Features of Coaching. As used across fields One-one relationship over time Focus on self-actualization Practice skills and strategies with support - PowerPoint PPT PresentationTRANSCRIPT
Financial Coaching: An Overview
J. Michael Collins Prepared for presentation at the
Centers for Working Families, July 22-23, 2010
Typical Features of Coaching
• As used across fields
• One-one relationship over time
• Focus on self-actualization – Practice skills and strategies with support
• Generally goal-focused
• Typical client has potential to improve performance– Non-clinical; strengths based; non-crisis
Financial Coaching
• Relationship-based • Client Directed’
• Self-activated goals• Goal Focused
– Performance improvement• Not an ‘expert’
– Goal setting • Monitoring & Accountability
Financial Capacity Building
InformationModels
Advice Models
MechanismModels
• Disclosures• Print/Web• Interactive Web• Workshops• One:One• Reminders
• Technical expert (credentialed)
• Transactional guide (may have sales focus)
• Counseling (acute problem solving)
• Coaching
• Defaults• Automatic Deposit• Product constraints
Therapy – diagnosis / Treatment • Self Control: External Monitoring
• Executive Attention
Working Definition of Coaching
Key Elements of Coaching
• a focus on long-term outcomes (future orientation)
• an ongoing, systematic, collaborative process for assisting clients to change behaviors
• support to practice new behaviors
• building skills and teaching content based on the client’s unique needs and goals
Steps: 1. Goal setting
2. Action planning
3. Monitoring
“a collaborative solution-focused, result-oriented and systematic process in which the coach facilitates the enhancement of life experience and goal attainment of normal, non-clinical clients” (Grant, 2003).
Coaching Low-income Clients• Not financial or estate planning
• Fewer financial assets; less likely to have employer benefits
• May be eligible for public benefits or special private programs
• Credit management critical
• Lack of experience with financial institutions, products
• Pressure on time and limited resources
Appreciate and excel with financial coaching approach
Coaching Models
Staffing:• Pro bono
expert• Paid staff• Financial
professional volunteer
• Lay volunteer
Setting:• Clients in
Tax/IDA/other program
• School/work- place based
• Head Start• Other
Facilitation SkillsICF Core Coaching Competencies
1. Setting the foundation
• Ethical and professional standards
• Establishing the coaching agreement
2. Co-creating the relationship
• Establishing trust and intimacy with the client
• Coaching presence
3. Communicating effectively
• Active listening• Powerful questioning• Direct communication
4. Facilitating learning and results
• Creating awareness• Designing actions• Planning and goal setting• Managing progress and
accountability
Outcomes
• Goals – attainable, measurable– Formation of well articulated goal
• Confidence– In money management
• Financial Literacy– Gain knowledge about credit, budgeting and products
• Self-Control– Regular savings or debt repayment behavior
• Building Block for Future– Seeking additional products / services
Satisfaction: Most Coached Clients Are Happy with
Services
How satisfied are you with how well you and your coach work together to solve your problems?
Source: CNM Coaching Survey
More likely to have Goals and Greater Confidence will Reach
Goals
Source: MoneyUP Client Survey
Greater Financial Security?Financial Management and Access to Benefits
Source: Abt Associates CWF Survey
More Likely to SaveThinking about the last year, which statement best
describes your typical savings behavior?
Source: Abt Associates CWF Survey
Measuring Impacts?
• Self report + administrative data (FICO, account balances, etc)
• Valid comparison group• Ideal: Randomize offer
• But coaching has intrinsic bias of most motivated clients – hard to separate service from choice to participate• Focus more on mechanism: self control and
executive attention
J. Michael CollinsFaculty Director, Center for Financial SecurityUniversity of Wisconsin-Madison7401 Social Science, 1180 Observatory DriveMadison, WI [email protected]
For More Information: http://www.uwfamilyfinancialsecurity.org/