What is financial coaching?
Financial coaching – or money coaching – is a process where a coach offers guidance to a client to help them achieve their financial goals.
It differs from financial advice because a money coach aims to empower people with the knowledge they need to improve their relationship with money.
Financial coaches help people address their emotional and psychological relationships with money, such as uncovering limiting beliefs, overcoming fears, and reframing negative money narratives.
In this video, certified financial coach and money mindset mentor Sarah Brill explores what a financial coach is and the benefits of working with a coach.
What does a financial coach do?
For some people, talking about money can feel shameful or even taboo. Talking to friends or family about money worries can also be tricky, as their relationship with you may cloud their opinions. This is why, for many, talking to someone objectively in a confidential setting, such as a coach, is an ideal option.
A financial coach aims to help you better understand your relationship with money, make changes to it, and support you in developing greater control over your finances. They can help you unpick limiting self-beliefs and support you as you improve your knowledge.
You might also see a financial coach to:
- help negotiate pay rises at work;
- support your career progression;
- learn how to charge for your services and create invoices;
- support your transition from being employed to owning your own business;
- navigate difficult conversations with others about money.
Coaches in this field often have a background in finance, bringing their industry knowledge into the coaching world.
The role of a coach is to provide a non-judgemental, confidential space for the client to take a step back, reflect on their goals to achieve or obstacles to overcome, and help them carve out their own sustainable solutions.
– Helen Robinson, PCC, Personal & Professional Development Coach and Ikigai Coach, writing in Unveiling the silence: Women and financial avoidance.
What's the difference between a financial coach and an advisor?
Generally, a financial coach focuses on empowering clients and helping them change their mindset around money by navigating challenges like budgeting and saving.
Coaches do not manage funds or recommend investments. Instead, they help educate you, suggest ways you can save money, and help you to become more financially literate and confident in managing your own finances.
A financial advisor is regulated to help manage investments and recommend specific products. Many people who receive coaching also choose to work with an adviser.
You may have regular financial coaching sessions over a set period, so each session offers a gentle sense of accountability. If you’re prone to putting off anything finance-related, this accountability can help you take action – even when it feels hard. Your coach will be with you every step of the way, providing support and encouragement.
If you’re in a relationship and have joint finances, you may find it helpful to see a coach together. Getting on the same page about your finances as a couple can ease tensions and help you share goals for your future.
What are the benefits of financial coaching?
Working with a financial coach can come with many benefits.
A financial coach can help you to:
- understand and change your relationship with money;
- unpick limiting self-beliefs;
- change unwanted habits or behaviours around money;
- set financial goals and learn how to plan for your financial future;
- increase your awareness of your financial health;
- support you to increase your knowledge of finances;
- understand financial needs when starting/expanding a business;
- overcome anxiety and fears of handling/managing your finances;
- better understand factors that can affect your credit score;
- feel confident in your knowledge of your current finances and future planning.
Financial coaching helps people gain confidence and clarity around money. For many people, knowing where to start is the biggest hurdle. A coach can guide you through the process and break it down into achievable steps.
I had the belief that I was not good enough...
Transformational life coaching changed my life. I now have goals and direction. Life no longer just happens to me, I am in control. I shape my destiny, my future.
- Zahraa’s reflection on how coaching helped her.
What to expect during a financial coaching session
Financial coaches are there to help you focus on the future. While they can help you to identify shortcomings you may have made, they aren't there to dwell on what you've done 'wrong' or to make you feel bad for making mistakes. A financial coach wants to help you make an achievable, actionable plan that suits your unique situation and needs.
Typically one-on-one, a coach may ask preliminary questions to learn what you want to focus on first, what your current financial situation is, and what goals you want to set. Maybe you want to pay down debt but aren't sure where to start, or perhaps you want to invest in your financial future but feel lost and unsure where to focus.
A coach can help you prioritise, teach you more about areas where you feel uncertain, and help you build your confidence.
Your coach will let you know ahead of time if you need to fill out any paperwork or bring anything with you. They may ask you to bring along a basic outline of your current budget, or a snapshot of your money (how much you earn, your current debts, and any big concerns or questions you have).
Sessions can take place face-to-face, online, or by telephone, depending on your preference and what your coach offers. While no two sessions are identical, common topics include how to save, how to communicate better with your partner about your finances or theirs, and how to understand your spending. Creating a sustainable, realistic budget is another common focus for those working with a financial coach.
You'll usually leave sessions with clear, key actions to take before your next session. This could include creating a plan, setting goals, or even brainstorming potential side hustles.
A single session is rarely enough to fix everything, as it can take time to reprogram money blocks. But by working with a coach, you can gain the tools to manage your finances confidently and stay accountable.
How can a money coach help me?
The Money and Mental Health Policy Institute notes that almost half of people in financial difficulty have a mental health problem, with 86% of people in debt saying that their financial situation worsened existing mental health concerns.
Money worries can entangle themselves in all areas of our lives and, as tempting as it may be to try and forget about them, this often only worsens the problem. Becoming more aware of your finances, understanding how your beliefs around money affect you, and filling any knowledge gaps can all help. This is, essentially, financial self-care.
Financial coaching can support your goals, habits, and understanding of money, but it is not a substitute for regulated financial advice. A coach should not recommend specific investments, pensions, mortgages, insurance products or debt solutions unless they hold the appropriate qualifications and regulatory permissions.
Understanding your relationship with money
If you want to change your money habits, the first step is to understand why you feel the way you do about money. A coach can support you with this. Many of our habits and beliefs live in our subconscious and often come from childhood.
The way your parents talked about money, for example, may have seeped into your subconscious, planting a belief that is now affecting how you view money.
"Wealthy people are unkind", "money is difficult to earn, " and "I’m not good with money" are just a few examples of limiting beliefs – beliefs that hold us back. When we believe these statements, our brain seeks confirmation of this (this is called confirmation bias). When we see this confirmation, our belief gets cemented.
Understanding where our beliefs come from and how they limit us is key.
The economy is complicated, and we’re certainly not all on a level playing field. Changing your beliefs about money will not magically change your situation. Instead, we recommend you view it as one tool in a larger toolbox you can access for support.
Finding the gaps in your knowledge
Many of us weren't taught about taxes, pensions or investments at school, so it’s not surprising that we lack confidence around money. Some also have negative connotations with numbers and maths, finding anything money-related just as repellent.
Reviewing your knowledge about money and identifying any gaps is a crucial step. Once you’ve identified the gaps, you can educate yourself with the help of a coach. Understanding how to manage your money in practical terms can go a long way toward changing your relationship with it.
With practical knowledge and a positive mindset, change can happen. When it comes to educating yourself, we recommend learning from official sources. The Money Saving Expert website, for example, is a trusted, well-respected place to start.
Taking the next steps
Money may feel like a complex and intimidating force in our lives, but it doesn’t need to be. With the right tools, we can pick it apart, understand it, and make it work for us. It can help you achieve financial freedom, align your finances with your values, and feel more empowered to make financial decisions.
To learn more about how a coach could support you, we recommend reaching out to a coach for an initial consultation to learn more about them and see whether they can help.
