training guide for€¦ · coaching sessions and four virtual check-in sessions, preferably by...

TRAINING GUIDE FORVOLUNTEER BUDGET COACHES

United Way of Central and Northeastern Connecticut engages people to improve lives and change community conditions. We partner with people and organizations to ensure that children succeed academically and in life, families are healthy and financially secure, and everyone has access to immediate emergency assistance, such as food and shelter

United Way’s Volunteer Budget Coaching Program is an opportunity for a volunteer to partner one-on-one with an adult who is interested in taking steps toward improving their financial security. The budget coaching engagement will last four months and will include four (4) in-person budget coaching sessions and four check-in sessions, preferably by telephone. As a volunteer budget coach, you will receive training to assist participants in achieving the following:

• Identify all sources of income• Track monthly expenses and calculate the difference between income and expenses• Identify all outstanding debt• Develop a budget to gain insight into their finances• Determine their financial goals• Develop an action plan to reach their goals• Review their credit score

Volunteers play a critical role our success and helping working families succeed. Thank you for giving your time and talents to strengthen the community. We need more people like you!

For information on other ways to get involved with United Way, please visit unitedwayinc.org. Also, join the conversation on Facebook (facebook.com/unitedwayinc) and Twitter (@unitedwayinc).

This publication is meant to provide general financial information; it is not meant to substitute for, or to supersede, professional or legal advice. The content areas in this publication are believed to be current as of this printing, but, over time, legislative and regulatory changes, as well as new developments, may date this material.

Copyright © 2013 by United Way of Central and Northeastern Connecticut.

All rights reserved. This curriculum or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of United Way of Central and Northeastern Connecticut and the local United Way of the territory where the program will be delivered.

OVERVIEW

1 Introduction

3 Overview of Goals by Session

5 Keys to Effective Budget Coaching

7 Budget Coaching Principles, Techniques and Tips

Session Road Map: 9 Session 1 and Check-in 1a: Setting Goals and Getting Started 15 Session 2 and Check-in 2a: Developing and Review the Budget 19 Session 3 and Check-in 3a: Review Budget, Develop Action Plan and Discuss Credit Score 22 Session 4 and Check-in 4a: Finalize Action Plan and Wrap-Up 25 Volunteer Budget Coach Final Steps & Additional Resources

TABLE OF CONTENTS

The role of the volunteer budget coach is to support participants in a thought process that will help them understand and assess the ways in which they make decisions about their finances. It is not the responsibility of a budget coach to make any financial decisions for the participant, but to support them in achieving their short and long-term personal financial goals. Budget coaching requires that you listen carefully so that you can “start from where the participant is.”

Financial topics, particularly of a personal nature, often have strong emotional and cultural implications for people. It is important to respect that each individual has the right to make decisions as they see fit given their personal and financial situation. There is no right or wrong answer in budget coaching. It is how the participant is brought through the process so that they may sustain long-term behavioral changes on their own, once the budget coaching relationship has ended that is of greatest value.

Your primary goal as a budget coach will be to create and build on a supportive framework for the participant to get to a new way of thinking about their personal financial goals, making financial decisions and understanding the consequences of those choices.

At the end of your budget coaching relationship, the participant should be able to:

• Identify all sources of income• Track monthly expenses and calculate the difference between income and expenses• Identify all outstanding debt• Develop a budget to gain insight into their finances• Determine their short and long-term financial goals• Develop an action plan to reach their goals• Review their credit score

The budget coaching engagement will last four months and will include four in-person budget coaching sessions and four virtual check-in sessions, preferably by telephone. Your support in between in-person sessions is crucial to assessing the participant’s progress, keeping the participant motivated, identifying problems, and helping them to develop problem solving skills.

[INTRODUCTION - PAGE 1]

INTRODUCTION

[PAGE 2 - INTRODUCTION]

Each point of contact with the participant has a specific purpose. Below is an overview of the sessions that will be expanded upon within this manual:

[OVERVIEW OF GOALS BY SESSION - PAGE 3]

OVERVIEW OF GOALS BY SESSION

SESSION 1 GOAL (IN-PERSON) - GETTING STARTED AND SETTING GOALS

SESSION 1A CHECK-IN GOAL - GETTING STARTED AND SETTING GOALS

SESSION 2A CHECK-IN GOAL - DEVELOP AND REVIEW BUDGET

SESSION 2 GOAL (IN-PERSON) - DEVELOP AND REVIEW BUDGET

SESSION 3 GOAL (IN-PERSON) - DEVELOP ACTION PLAN AND DISCUSS CREDIT SCORE

Get to know the participant and discuss their goals. Review steps for moving forward. Answer questions the participant has about tracking and budgets. Confirm that the volunteer budget coach-participant relationship and all information is confidential. Look over the participant’s estimated and tracked expenses. Discuss additional strategies for tracking actual expenses before the next session.

Talk with the participant about tracking expenses. Find out how the exercise is going and see if they need any additional information or suggestions. Ask how their estimates compare to their actuals.

Discuss what the participant sees in the budget. What did the participant realize from this exercise? Ask the participant to pull credit score and bring to the next session.

Discuss the budget. Then, compare income and expenses. Develop the budget and review strategies and tactics for utilizing the budget.

Review of budget and discussion of what the participant wants to change—increasing income, decreasing expenses etc. Continue discussion about the budget. If the Tracking Worksheet is incomplete or hasn’t been started, discuss reasoning and identify obstacles.

[CONTINUED]

Discussion of credit score. Review budget progress. Discussion on creating a robust action plan; progress to-date toward their goals and refining the steps necessary to achieve them.

[PAGE 4 - OVERVIEW OF GOALS BY SESSION]

SESSION 4A CHECK-IN GOAL

SESSION 3A GOAL (IN-PERSON) - REVIEW ACTION PLAN, DISCUSS CHALLENGES/SUCCESSES

SESSION 4 GOAL (IN-PERSON)

Now that they have multiple months of budgets, do they want to adjust their goals? Ask them to their “Action” Plan in front of them for the call.

Arrange an additional phone call with the participant to follow-up on the action plan, tracking and budget planning.

Your last meeting with the participant. Jointly complete “Action Plan” and give copy to participant. Present the participant with their Certificate of Completion of the Volunteer Budget Coaching Program. Congratulate them on their progress and wish them the very best for the future

PARTICIPANT WRAP-UPSession 4 Agency Partner will conduct an in-person program wrap-up with the participant.

VOLUNTEER WRAP-UPVolunteer Budget Coach Exit Interview: Following the conclusion of the budget coaching sessions, volunteer budget coaches will be asked for feedback and evaluation on the program regarding what was effective and what recommendations they would make for improvements. We will also be interested in understanding what impact volunteers believe their budget coaching had on their respective participant’s ability to clarify their financial needs and choices and to continue with personal accountability around their financial choices and the impact of their actions.

Discussion of what changes they have made and what they want to do.

Discussion about their budget and what they are seeing after two months. What changes have they made?

Most of us don’t learn how to manage money in school. We often learn our financial habits from our parents, through our own experiences or the hard way—by making mistakes. The intent of the Volunteer Budget Coaching Program is to help participants prevent big mistakes by developing a basic understanding of financial concepts for sound financial goal setting and decision-making. Your role is not to solve the participant’s financial issues. A budget coach’s role is to guide and encourage a participant to think differently to make informed financial choices that make sense in the context of their lives. You will also refer the participant to resources that are provided by the United Way of Central and Northeastern Connecticut and program staff to support the participant’s general knowledge of various financial topics.

Always remember that the participant drives this process; it is their life. participants have made the commitment to the program, so it is safe to proceed on the assumption that they are ready to make significant changes in their choices and behavior. Each participant is responsible for his or her own success. As a volunteer budget coach you will encourage the participant to set specific and achievable goals and to outline steps to reach their goals. You will also celebrate with them the small milestones along the way and progress toward their goals over four months.

Volunteer budget coaches play a crucial role in helping participants create and maintain a budget, pay bills on time and save for the future.

As a volunteer budget coach you will have the opportunity to:

• Learn valuable skills• Receive coaching training• Make a difference in the community where you live and work

[KEYS TO EFFECTIVE BUDGET COACHING - PAGE 5]

KEYS TO EFFECTIVE BUDGET COACHING

[PAGE 6 - KEYS TO EFFECTIVE BUDGET COACHING]

WHAT IS THE ROLE OF A VOLUNTEER BUDGET COACH?

Be supportive. Don’t tell participants what they have to do or pass judgment on what they choose to do. Rather, help participants learn to realize for themselves whether their actions are moving them toward their goals.

Listen and ask questions. Listen closely to what is said and note how it is said (including tone and body language). Ask questions to help clarify the participant’s situation.

Educate and motivate. Encourage participants to take responsibility for resolving challenges by using their own strengths and resources. Help them to identify options in order to make the best possible choices now and in the future. [Example: When dealing with creditors, many participants may be reluctant to make calls to resolve debt issues. Encourage the participant to take the first step to contact the creditor and acknowledge that they plan to repay the debt, and to ask for help in establishing a mutually agreeable payment plan.]

Know and get comfortable with the limits of your role. Don’t fix the participant’s problems for them, give investment advice or recommend specific products. You can’t fix these types of problems for others. This is a month professionally based relationship and after that the participant will only be successful if you let them “drive the bus”. Program staff is always available to help you identify resources for your participant and to work through challenging situations.

Maintain confidentiality. All of the information shared with you is personal and confidential. None of the information shared may be revealed to any third party without specific written permission to do so. For reporting and quality control, the organization providing the Volunteer Budget Coaching Program will have permission to access the information gathered by the budget coach in the coaches’ reports, interview, and through any other communications with the participants. The volunteer budget coaches and participants have signed participation agreements which include a confidentiality clause.

Know your boundaries. Budget coaches should always meet on neutral ground, never in the home of the participant or budget coach. Locations could include a library, social service organization, or place of business that is mutually convenient. We recommend a quiet place where the client feels comfortable sharing personal information, and where there is adequate space to review documents. In addition, avoiding meeting places that will require purchases, such as coffee shops and restaurants is recommended. A budget coach may never transport a participant in his or her vehicle.

The less obvious boundaries, but equally important are what to share about yourself with the participant. Sharing overly personal information takes the focus off the participant and could be misinterpreted as friendship or judgmental. If you’ve had a similar experience needing to better understand your finances, feel free to share with the participant that you know if takes a lot of work and can personally attest to the value of their efforts. Do not provide details, results or share your own financial goals or accomplishments.

PRINCIPLESThe following principles should govern a budget coach’s interactions with the participant:

• Listening is more important than talking• Seek to understand what motivates the participant’s decisions• Support the participant even though you may not support their choices

- Reach out for help when you need it—contact program staff• Everyone is capable of achieving success• A good budget coach’s approach is non-judgmental• Budget coaches don’t give advice; they help a participant uncover their own answers• Budget coaches don’t provide the answers• All budget coaching is completely confidential

TECHNIQUESThere are many budget coaching techniques that you can utilize during a coaching session. One of the most important techniques is questioning. Asking questions put the focus on the client, helps you understand their current situation and desired outcomes, as well as helps to refine goals and actions to attain their goals. Asking meaningful questions are helpful in building the participant’s confidence to share highly personal information.

Open-ended probing questions help you dig deeper to better understand a participant’s situation or to clarify a vague or broad response. Open-ended probing questions may be which allow the participant to answer as broadly as he or she is comfortable. Open-ended questions begin with:

Who / What / Where / When / Why / How

Examples of open-ended probing questions include:

• What are your biggest difficulties in managing your finances?• Where do you think you’ve been doing a good job at managing your finances?• When does that type of temptation to spend come up for you?• What do you mean by (plug in something the participant said)?• How would changing that affect your goals?• What are you taking away from today’s discussion?• What new things will you try?

[BUDGET COACHING PRINCIPLES, TECHNIQUES AND TIPS - PAGE 7]

BUDGET COACHING PRINCIPLES, TECHNIQUES AND TIPS

[PAGE 8 - BUDGET COACHING PRINCIPLES, TECHNIQUES AND TIPS]

Closed-ended probing questions help you to refine and clarify your understanding of what the participant is sharing. They also help the participant to do the same thing! You’re making them think a bit further toward the solution. Closed-ended probing questions also allow you to show the participant you’re listening and want to understand what they are communicating. They can be used through a conversation and are helpful in wrapping up sessions and confirming the participant’s understanding of next steps. Closed-ended probing questions may first be answered by a “yes” or “no” and are often followed by more explanation. Closed-ended probing questions begin with:

Did / How Many / Can / Would

Examples of closed-ended probing questions include:

• Did you try that?• Would you like to see the example of setting goals?• Let me make sure I understand. Are you concerned

that you will try to make changes in your choicesand they will be difficult to take action on?

• Is that because of a specific concern?

Solution-focused questions help participants start thinking of options or possible solutions to financial situation. For example:

• What are you doing now?• How is that working for you?• What else could you try?• Tell me what you’ve done in the past that worked

that you might be able to do again in this situation?

Note: Asking closed-ended probing questions are not effective when you are building the relationship with the participant as there is always the possibility that they will stop after “yes” or “no” and not open up to the conversation.

TIPS

Set a positive tone when you meet in person, on the phone and in emails. Stress that this process is for the participant. Emphasize that your role is not to tell them what to do but to help them use what they already know, and think through their wants and needs and create a plan to achieve their goals. Along the way, you will refer them to information and resources, which they can refer to between budget coaching sessions.

Tie financial topics back to the participant’s situation and goals while asking what the participant believes they may mean for him or her. Avoid judging—choices are not necessarily good or bad; they depend on the participant’s situation.

Participants do not often identify “developing a budget” as a first goal. The purpose of these meetings is to develop a plan that meets basic living needs while helping the participant create an achievable plan to achieve short and long-goals. participants will be asked to estimate their monthly spending prior to the first meeting. You will need to devote time to discussing the importance of developing a budget that reflects your participant’s actual spending habits. To achieve this, we ask participants to track all expenses for at least three months. This is often difficult and may require some extra support from you. Once the participants have this information, you will be able to help them compare their estimated spending versus their actual spending.

While spending or investing may not be tied to all of the participant’s goals, they may have goals which will require some investment. For instance, if they aspire to open a franchise business one day, they will have to save or find investors. Many investments are the result of accumulated savings. For example, setting up a college savings vehicle or saving to buy an apartment or house.

ESTABLISHING THE RELATIONSHIPBuild Rapport and TrustAs with any new relationship, building rapport and trust makes for a better experience and outcome for everyone involved. Financial matters are highly personal and during this first session it might be difficult or uncomfortable for the participant to share openly with you. Anticipating that this may be the case and planning for it will help you relax and help the participant to relax. The program is four months in length. You have time to accomplish the objectives of the program, so use this first session to set a positive tone.

Set the Stage• Shake hands with the participant and let them know you’re happy to meet them in-person• Ask how they are and to tell you a little bit about their background and interests• Let them know a bit about your professional background and why you volunteered

as a volunteer budget coach• Reiterate that the coaching relationship is confidential. Information will only be shared with

United Way and program staff

[SESSION 1: GETTING STARTED AND SETTING GOALS - PAGE 9]

Session 1: Getting Started and Setting Goals

GOAL OF SESSION 1

Build rapport and a safe environment for the participant to share their financial goals and current situation with you. You will begin a dialogue and set the foundations of the budget coaching relationship; clarify the process, goals and intended outcomes up front.

Prior to your first meeting, the participant will have gone through an initial screening and will have attended an orientation. To prepare for your first in-person session, participants will have been instructed to bring short and long-term goals, an “Estimated and Actual Tracked Expenses” Worksheet, and a “Total Monthly Income” Worksheet.

You will have a copy of the participant’s goals and by the end of this session will check if the participant has made any changes.

[PAGE 10 - SESSION 1: GETTING STARTED AND SETTING GOALS]

Alignment• Process

– Review that there will be four in-person sessions that last a minimum of one hour and fourcheck-ins of approximately 20 minutes each, preferably by phone

– Review that the participant will have work to do between the sessions so that the processmoves forward meaningfully for the participant to work toward his or her goals

• Roles– Your role as a volunteer budget coach is to support the participant set their short and long-

term financial goals and make their own choices on actions to achieve those goals. Youare not an advisor, rather someone who can guide them in their own thinking, choices andactions toward their financial goals. You know that financial goals vary from one person tothe next; there is no right or wrong answer. The objective is to gain clarity so you can bothfocus on what is most meaningful for the participant over the next four months

– The participant’s role is to do their best in collecting the financial information required,to so their work in between sessions and begin to share what is relevant to moving towardtheir goals

• Setting Expectations– Ask the participant what they’d like to get out of this program– Share your own expectations, such as: “I’d like to help you build the thinking and tools to

make the changes you desire and to reach your goals”

• Communicating with one another– Inform the participant at the end of this session, you and the participant will set dates for

the Check-in (1a) between this and your next in-person meeting; and, if possible, the nextin-person meeting

– For purposes of alignment on respecting communicating, let the participant know thatunless absolutely necessary you will stick to the times you schedule together and ask thatthey do so

– Make sure you both have the correct contact information and commit to discussing anyrescheduling issues on a timely basis

– Let the participant know that you admire their courage/initiative in participating in theprogram—discussing finances can be difficult

Ask the participant if they have questions or comments. Acknowledge and answer questions and comments and ask if the participant is ready to begin the process.

UNDERSTANDING THE PARTICIPANT’S SITUATION

Tip: Check your desire to present solutions. First, you and the participant must understand where the participant wants to go and how that differs from where things are today. Through your budget coaching and modeling good questions, you are passing along valuable life tools to the participant. The participant’s own solutions will be all the more powerful as a result of your taking this slowly. They will own and be better equipped to take action if they come up with the next best steps on their own.


SETTING GOALS FOR THE FUTURE: WHERE WOULD YOU LIKE TO BE?Setting goals is the first step outlined in the participant workbook. You will ask questions of the participant to help them articulate and clarify their short and long-term goals such as reducing debt or saving for a specific purchase. Short-term goals are defined as those that may be attained within one to nine months; and long-term goals are defined as those that may be attained within one to five years. Later in the process, participants will use these as the foundation to make spending choices that will support their success.

participants will have an opportunity to think about their goals at their orientation prior to your first meeting. Encourage the participant to write and refine their goals as a foundation for their work in the Volunteer Budget Coaching Program. Articulating and refining goals may continue into sessions 2 and 3. By the end of the session 3, if the participant is struggling to refine or commit to their goals, please speak with a program staff member to work through options to move the participant forward.

Ask probing questions, such as those below, to allow the participant to share in their own words:

• Over the next one - nine months, what goals would you like to achieve?• What goals would you like to achieve longer-term, one to five years from now?• If you achieved your goals, what would that look like for you?• Are these goals that you had set before applying for this program?

THE PARTICIPANT’S CURRENT SITUATIONGaining a sense of what the participant’s current situation is in relation to their financial goals helps to hone in on their work ahead. Ask the participant the following types of questions:

• How would you describe the current picture of your finances?• What is your comfort level right now in setting goals and making financial decisions?• How do you typically make choices on what and when to spend?• What have you already tried? (Budget coach: get specific examples from the participant)• What went well, and what did not work out?

Ask the participant to identify potential challenges and barriers to achieving these goals.• What are you most concerned about as obstacles or barriers to your success?

LOOKING TOWARD THE FUTUREAsk the participant to share how they would like their choices to be different in the future. This is the beginning of the participant’s setting goals.

• What would you like your financial life to look like in three months, six months,one year, and five years?

• What is the most important thing in your life that better financial managementcould make happen?

• What priorities would you set for yourself right now for the four months we’llbe working together?

• What word would describe the vision of your future financial picture?


SPENDING AND INCOME REVIEWTo begin building a tangible understanding of the participant’s current financial situation, explain that it is a good time to see what progress they’ve made on their homework after attending the participant orientation. Review the “Estimated and Actual Tracked Expenses” Worksheet and “Total Monthly Income” Worksheet that the participant was asked to complete. Be encouraging and supportive even if the worksheets aren’t complete.

Calibrate where the participant is in the process and how they are doing:

• Tell me how it went for you to track your spending?• How easy was it to get organized?• If there are others in your household who are spending, is that also on the worksheet?• Are there expenses here that aren’t covered by any working adults in your household?

Perhaps cell phones, rent?• Does the participant have any questions about how to fill out the worksheets?• Review the tips and ideas to help with tracking that are in the participant workbook

and develop a plan for how expenses will be closely tracked for the next month.• Determine whether there are any missing pieces of information that need to be filled

in on the Total Monthly Income Worksheet, and develop a plan for completing theworksheet if needed.

• Make sure that to include all sources of income—is there anything missing? Child support?Income from other household members?

• Is the participant accounting for subsidies in their budget to cover some key categoryexpenses? Considerations to make are if the participant believes they can save what isnot used of SNAP/ food stamps to put in the bank as savings. This is not the case, as youmay recall from the volunteer Orientation. SNAP/food stamps are essentially coupons foruse only to buy food and any difference does not translate to disposable income. Anotherscenario might be that the participant is not receiving enough subsidy through SNAP/foodstamps and must allocate enough cash in their budget to cover the deficit in coverage.

PREPARING THE PARTICIPANT FOR CREATING A BUDGETExplain to the participant that the next step is to continue to track expenses, which is crucial to developing a budget. A budget will serve as their financial road map to attain their short and long term goals.

CHECK-IN GOAL Talk with the participant about tracking expenses. Find out how the exercise is going and see if they need any additional information or suggestions. Ask how their estimates compare to their actuals.


SESSION WRAP-UP

PLAN FOR CHECKING-IN

PREPARING FOR FUTURE MEETINGS

REPORTING

Tell the participant that at end of each session that you’d like to hear what they learned or discovered during your conversation.

• Remind the participant that continuing to track income and expenses is the key tosuccessful budget management

• Ask the participant to share what they learned or discovered during the session• What are the next steps before we check-in via phone in two weeks and those that

will be accomplished by Session 2?• Will you anticipate any challenges to getting these things done?• What other resources do you know of that are available to help you?

Recommend resources as outlined, such as www.211ct.org/income

Talk about how you will stay in touch in between face-to-face meetings.

• Set a date and time for a phone check-in (Session 1a); if not by telephone,determine when via email

• The participant should contact you• Review the action steps you heard from the participant

As a volunteer budget coach, you will meet with the participant four times face to face. Try to set the next two dates beyond Session 2.

• Fill in Session 1 budget coaching report (all reports will be filled out on the paperversion or Word document)

• Remember coaches’ reports are due within one week of each meeting or check-in

REVIEWING THE BUDGETReview the Tracking Worksheet with the participant. Identify any challenges that the participant experienced. Provide the participant with an overview of the steps to creating a budget. Walk through the steps together and let the participant know that you be asking the participant questions to ascertain if there are any gaps and to assure they have been thorough in each of the steps:

1. Identifying all sources of income2. Tracking expenses3. Comparing income and expenses4. Making choices

Celebrate all successes, even small ones. Tracking expenses and creating a budget can difficult, it is important to recognize and celebrate progress during this stage.

[SESSION 2: DEVELOP AND REVIEW BUDGET - PAGE 15]

Session 2: Develop and Review Budget

GOAL OF SESSION 2

• Help the participant refine their current financial picture and makechoices on actions to reach their goals

• Ask the participant how they felt during the tracking exercise. What didthey learn about themselves and their financial picture?

During this session, you will review the tracking worksheet the participant has prepared over the last month. You will continue asking questions to guide and assist the participant in clarifying their current situation and identify any changes necessary to reach their short and long-term goals.

Ask the participant about their experience in putting together the tracking worksheet. Find out what they learned throughout the process. Ask if anything significant has changed for them since you last met that might affect their financial picture.

[PAGE 16 - SESSION 2: DEVELOP AND REVIEW BUDGET]

Identifying IncomeAsk the participant to walk you through their “Total Monthly Income Worksheet” to determine their total monthly income. Make sure the monthly budget is based on dependable income. For example, a participant receiving child support payments sporadically should not list these payments as part of the monthly budget. Consider discussing the following with the participant:

• Are there working adults who are not contributing to income?• Ask the participant how they would feel about asking all working adults, in the household, to

contribute something to the household. How much would be reasonable?

Tracking Expenses Review the Tracking Worksheet with your participant and total the expenses for the month, and coach them through any challenges they had with the “Periodic Expenses Worksheet”. Review the final tracking worksheet and compare estimated vs. actual expenses, asking the participant to walk you through and explain any challenges or changes.

Remind the participant to make note of any new or forgotten periodic expenses and debts to incorporate in their budget.

Comparing Income & Expenses Ask the participant to consider their income and expenses.

• Are there any patterns they see in their spending?• Are expenses greater than income? • Do they have questions or thoughts on why expenses are higher than income? If so, what?

Making Choices Help the participant identify needs versus wants. This stage of the process is critical. Encourage the participant to make a list of needs versus wants.

• What are the consequences of choosing only wants? • What actions will you take to assure your needs are taken care of and still have some wants in

there to enjoy your life?• What will be challenging in changing your thinking and behaviors to attain your financial goals?• When you think about the consequences of your choices are there any that you don’t want?• What adjustments do you need to make?

What can you suggest the participant might do for next steps?• Suggest that the participant review the “plugging spending leaks” section of the workbook, then make a list of ways to cut back on expenses• Suggest that the participant to examine where they may reduce costs, for instance, could they

investigate reducing car insurance, negotiating their cable bill or interest rates on credit cards. Many people schedule this as an annual activity

[SESSION 2: DEVELOP AND REVIEW BUDGET - PAGE 17]

Instruct the participant to complete the Budget Worksheet for the next session. Instruct the participant to use the budget to track their expenses over the next several month while keeping their new spending goals in mind. Note: Not all participants will be able to identify a New Spending Goal in every category. If needed, set some smaller goals first.

The participant should identify debt reduction and savings goals, making sure to include any new spending increases or additional reductions that will impact attaining his or her goals.

• Ask the participant if they have emergency savings account or rainy day fund.• If not, ask them what benefits they’d feel if they did.• What would be a reasonable amount per month that can be put into this account?

Many people think a rainy day fund is beyond their means, but unplanned expenses like a car repair or a new major appliance can strain a budget. Remind the participant that a rainy day fund is for emergencies only.

CHECK-IN GOALDiscuss what the participant sees in the budget. What did the participant realize from this exercise? Ask the participant to pull credit score and bring to the next session.

PREPARING FOR SESSION 3• Inform the participant that during Session 3 you will review their credit score• To prepare, if they have not already done so, they should refer to the information on

accessing their credits scores free of charge, which is provided at the participant orientation

[PAGE 18 - SESSION 2: DEVELOP AND REVIEW BUDGET]

SESSION WRAP-UP



REPORTING

• Remind the participant that continuing to track income and expenses is the keyto successful budget management

• Ask the participant to share what they learned or discovered during this session• Determine the actionable items and next steps before the virtual check-in in two

weeks. Also determine what will be accomplished by the next in-person session• Do you anticipate any challenges to getting these things done?• What other resources do you know of that are available to help you?



• Set a date and time for a phone check-in (Session 2a); if not by telephone,determine when via email

• The participant should contact you

Select next two meetings dates and time (virtual check-ins and face to face meetings).

• Fill in Session 2 budget coaching report (all reports must be filled out on thepaper version or Word document)

• Remember coaches’ reports are due within one week of each meeting or check-in

Take some time to review the goals that the participant originally identified. If the participant’s goals need to be revised, spend some time helping them explore why. While reviewing the document, have some of the following questions in mind:

1. Was the estimated spending drastically different than the actual?2. Has the budget helped to save more money per month than originally anticipated?3. Have the participant’s circumstances changed?4. Have any of the barriers that existed initially disappeared?5. Are there any additional action steps they might consider in order to meet their goals?

[SESSION 3: REVIEW BUDGET, DEVELOP ACTION PLAN AND DISCUSS CREDIT SCORE - PAGE 19]

Session 3: Review Budget, Develop Action Plan, and Discuss Credit Score

GOAL OF SESSION 3

• Understand any changes for the participant since you last met

• Review their budget

• Determine if there were surprises or realizations that the participantexperienced as a result of their homework

• Continue discussion about what changes they have made or want to make

• Discussion on goal progress. Do they need to revise their goals?

• Develop action plan

• Review credit score

In this session you’ll review the budget and help the participant to think through any necessary adjustment.

After one month participants generally have a good idea if their budget is working for them. During this meeting, review their spending for the previous month and ask probing questions to understand their experience. Encourage the participant to review their budget regularly to ensure it is a relevant document.

[PAGE 20 - SESSION 3: REVIEW BUDGET, DEVELOP ACTION PLAN AND DISCUSS CREDIT SCORE]

CLARIFYING AND COMMITTING TO GOALS AND PRIORITIES TO BUILD AN ACTION PLANIntroduce the Action Plan • Review the action plan with the participant, emphasizing that it is a useful tool and an

exercise to gain clarity and commitment toward achieving one’s financial goals• Remind the participant that smaller actions should be celebrated as meaningful milestones

to celebrate and that they add up to achieving their short and long-term goals• Ask the participant if the actions they are recording are realistic within the timeframe they

are suggesting• There is no formula. Everyone’s life situation and responsibilities are different and will

have bearing on the time required to achieve a goal. This enforces the importance ofsetting milestones for small accomplishments to celebrate along the way!

Some participants will need to work backwards from their goals to set actions and timeframes, others from the beginning. You may suggest that the best approach is simply for the participant to start getting everything on paper (or computer) without concern for order or timing. Let them know this is a common approach and the next step is to put it all into the picture of their plan. You will help them by asking questions to put their goals, actions and timeframes in place.

Budget Coaching on the Action Plan This is the participant’s plan. You may see things that you believe they should do or a capable of doing. Be mindful of putting these opinions or observations in the form of a question. Questions to support the participant’s efforts to build their action plan include:

• A few weeks ago you mentioned that buying a new car was a long-term goal. I don’t see thaton your action plan. Has something changed?

• Given your work schedule and/or taking care of family members, how much time do you thinkthis will take for you to accomplish without adding stress?

• Are there other resources you may tap into to help you with this action step?• If you ranked these short-term goals what would that look like?• Your goal says, “Earn more money”. What dollar amount would you put to that? In what

timeframe?• I see that you would like to earn $40 more per month, if we’re calculating correctly. Two

options are to make more or spend less. Which is most realistic for you? What resources are athand to earn more toward that $40 goal?

REVIEW THE CREDIT SCORE(S)

Review the credit scores the participant has brought to the session. Ask what they know about credit scores and their potential impact on finances and budgeting As a budget coach, it is not your role to provide credit counseling. The purpose of this exercise is to make sure that the participant knows his or her credit score and understands the implications of this score on their overall financial picture.

CHECK-IN GOAL Discussion of what changes they have made and what they want to do.

Discussion about their budget and what they are seeing after two months. What changes have they made?

Now that they have multiple months of budgets, do they want to adjust their goals? Ask them to their “Action” Plan in front of them for the call.

SESSION WRAP-UP



REPORTING

• Remind the participant that continuing to track income and expenses is the key to successful budget management

• Ask the participant to share what they learned or discovered during this session• Determine the actionable items and next steps before the virtual check-in in two

weeks. Also, determine what will be accomplished by the next in-person session • Do you anticipate any challenges to getting these things done?• What other resources do you know of that are available to help you?



• Set a date and time for a phone check-in (Session 3a); if not by telephone, determine when via email

• The participant should contact you

Select next two meetings dates and time (virtual check-ins and face to face meetings).

• Fill in Session 3 budget coaching report (all reports must be filled out on the paper version or Word document)• Remember coaches’ reports are due within one week of each meeting or check-in

[PAGE 21 - SESSION 3: REVIEW BUDGET, DEVELOP ACTION PLAN AND DISCUSS CREDIT SCORE]

[SESSION 4: FINALIZE ACTION PLAN AND WRAP-UP - PAGE 22]

Session 4: Finalize Action Plan and Wrap-Up

GOAL OF SESSION 4 AND 4A

You will continue to coach the participant to step back and think about the progress they’ve made since the first session and identify additional resources and actions to support continued progress toward their financial goals. Ideas may include:

• Ways to increase household income such as career advancement ortraining (see participant workbook for more ideas)

• Encouraging them to think through the benefits of a relationship witha financial institution;

• Talking about how their money and finances might be exposed andthe importance of using resources to protect themselves (e.g., fromidentity theft)

• Determine if use of technology, if not already in place would be feasiblefor the participant

• Help the participant determine if the resources and actions sinceSession 4—particularly if they reprioritized financial goals—is effectivefor the attainment of their financial goals

• Assist the participant in thinking through necessary modification totheir action plan

• Continue to coach the participant to step back and think about theprogress they’ve made since the first session and identify additionalresources and actions to support continued progress toward theirfinancial goals

Prior to this session, review “Additional Resources” on www.211ct.org/income in order to identify information that may be helpful to discuss at the next session. Ask program staff if you are in need of other resources that are not currently listed.

Feel free to arrange an additional phone call with the participant to see how things are going after the program has ended.

In this final session, you will wrap up lingering questions or concerns regarding the budget you have worked on together and help the participant finalize the action plan. These are foundational tools that the participant will utilize moving forward, so make sure the budget meets their current needs.

Spend some time discussing how the process worked overall. What worked well, and what would the participant suggest doing differently?

[PAGE 23 - SESSION 4: FINALIZE ACTION PLAN AND WRAP-UP]

[SESSION 4: FINALIZE ACTION PLAN AND WRAP-UP - PAGE 24]

SESSION WRAP-UP


REPORTING

• Remind the participant that continuing to track income and expenses is the key to successful budget management

• Ask the participant to share what they learned or discovered during this session• Do you anticipate any challenges to getting these things done?• What other resources do you know of that are available to help you?


• Fill in Session 4 budget coaching report (all reports must be filled out on the paper version or Word document)• Remember coaches’ reports are due within one week of each meeting or check-in

Present the participant with their Certificate of Completion.

• Congratulate the participant for working hard to complete the program• Thank them for their confidence in you to guide them through• Emphasize that what they’ve learned are valuable life skills to continue• Wish them the best of luck

Schedule the final check-in, Session 4a. During this session, you will ask the participant about their progress and what they have learned that they’ll carry forward in their budgeting and financial goals

[PAGE 25 - VOLUNTEER BUDGET COACH FINAL STEPS]

Thank you again for your dedication as a volunteer budget coach and for making a difference with an individual in your community.

FUTURE VOLUNTEER OPPORTUNITIES:We hope you will consider volunteering with United Way again. Visit www.unitedwayinc.org/volunteer for more information

ADDITIONAL RESOURCES:Additional tools and resources can be found by visiting United Way of Connecticut 211 at: www.211ct.org/income

FINAL STEPS

JOIN THE CONVERSATION WITH UNITED WAY! SHARE YOUR EXPERIENCES AND STAY CONNECTED YEAR ROUND: Facebook.com/unitedwayinc @unitedwayinc Instagram.com/unitedwayinc Pinterest.com/unitedwayinc

training guide for€¦ · coaching sessions and four virtual check-in sessions, preferably by...

Documents