Financial Coaching

What is Financial Coaching?

Financial coaching is a strategy to help people improve their financial well-being. It involves an application of coaching techniques designed to develop an individual’s capability to manage their finances in accordance with their self-defined goals.

Typically a coach works with a client to zero in on a behavior or behaviors to improve upon. The focus is on performance gains driven by the goals of the client. Unlike a counselor who helps solve problems, the coach provides a structure for clients to develop their own solutions. In the long run, coaching helps people develop skills and behaviors they can improve upon independently. 

Financial coaching is a growing area and one of great interest in the asset building field. It shows promise in helping people build financial capability and assets by learning to set financial goals, adhering to their goals with oversight and monitoring and gaining confidence to problem solve. 

Want to learn more, including the difference between financial coaching, counseling and education? 

Click here to review a summary on financial coaching.

 


AFN Members: Learn more about the Financial Coaching Working Group

June 2016

Financial coaching has gained recognition as a strategy that can improve financial capability and security and consequently an increasing number of funders have expressed interest in this approach.  To support and cultivate this interest and advance coordinated and responsive philanthropy, the Asset Funders Network recently launched the Financial Coaching Working Group.  For purposes of the Working Group, financial coaching can be broadly defined as any intervention that draws on coaching techniques designed to develop a client's personal capability to manage their finances in accordance with their self-defined goals.
 
The Financial Coaching Working Group is made up of AFN members interested in supporting the strategic and evidence-based growth of the financial coaching field.  The Working Group is open to all AFN members who currently support financial coaching as well as members who are interested in learning more. 
 
There are three primary goals of the Financial Coaching Working Group:    

  1. Provide a forum for AFN members to learn more about the emerging field of financial coaching and share insights that will further inform funder's strategic investments;
  2.  Encourage funders to leverage their funding and explore opportunities for coordination and collaboration;
  3.  Connect funders and encourage them to share information about their financial coaching funding priorities with each other and with AFN to inform AFN's collaborative work on financial coaching.

The Working Group has several activities planned in 2016 to accomplish its goals.  In Fall 2016, the Working Group- in collaboration with the Center for Financial Security-will administer the second Financial Coaching Census, which assesses the size and scope of the financial coaching field and explores how best to support it.  Additionally, the Working Group will host educational webinars, virtual learning opportunities and forums for AFN members to have robust discussions about financial coaching and explore opportunities for funders to leverage their investments. 
 
For more information about the Financial Coaching Working Group or to join the Group, contact Karen Murrell at karen@assetfunders.org.
 


Financial Coaching Census delivers snapshot of growing field

Financial coaching has gained recognition as a strategy that can improve financial capability and security. Yet within this advancing field of practice, many questions remain. 

    -  What is the current size of the field? 

    -  How is financial coaching being implemented? 

    -  How do organizations, coaches, and funders measure success?

    -  And what is needed to support more effective implementation?  

To begin addressing these questions and support the growth of the financial coaching field, the Center for Financial Security (CFS) and Asset Funders Network (AFN), developed the first-ever Financial Coaching Census to better understand the financial coaching field, from its size to its scope, identifying both challenges and opportunities. 

The Financial Coaching Census explains the methodology, summarizes the key findings and baseline insights, discusses areas for reflection, and identifies actionable steps to move the field forward. The objective moving forward is to deliver the Coaching Census on a yearly basis, allowing the field to track the trends, both positive and negative, that occur as the field continues to grow.  These insights will allow funders and organizations delivering coaching to better and more swiftly address the shifting needs of coaching programs, financial coaching practitioners, and financial coaching clients.

Click here to learn more and review the Report
 


Learn More - Webinars | briefs | resources
 

Webinar:  Financial Coaching: Strategies and Outcomes for Grantmakers

Webinar:  Financial Coaching: An Asset Building Strategy

Webinar:  Financial Coaching Census: Insights from the Financial Coaching Field


Financial Coaching Readings

AFN Grantmaker Brief:  Financial Coaching: An Asset Building Strategy

AFN Grantmaker Brief:  Financial Coaching: An Asset Building Strategy - Executive Summary

AFN Grantmaker Brief:  Financial Coaching Census: Insights from the Financial Coaching Field


Financial Capability Scale

AFN Strategy Spotlight:  The Financial Capability Scale: Guide to Using the Scale

AFN Strategy Spotlight:  The Financial Capability Scale: Moving to Implementation

Center for Financial Security:  Financial Capability Scale: FAQ

 

Financial Coaching Program Evaluation

 
The Urban Institute: An Evaluation of the Impacts and Implementation Approaches of Financial Coaching Programs
 
AFN and the Urban Institute presentation:  An Evaluation of the Impacts and Implementation Approaches of Financial Coaching Programs (taken from October 2015 AFN Member Presentation, where senior researcher Brett Theodos, Urban Institute shared findings from the Urban Institute report with AFN members in an interactive webinar.)
 
Study: Urban Institute: Randomized Controlled Trials and Financial Capability: Why, When, and How