While they (typically) don’t wear whistles around their necks or make you run extra laps, like athletic coaches, financial coaches are in it to WIN. Financial coaches, however, don’t count their wins by points and games, their success lies in the lives they’ve changed. In the people they’ve educated. In the money they’ve helped their clients better manage to truly live better lives.
So, what exactly is a financial coach?
A financial coach is an educator, accountability partner and sounding board.
Financial coaches help their clients improve their financial situation through regular one-on-one coaching sessions centered around getting to the root of financial situations and changing patterns of behavior to create a better financial future.
Unlike a financial advisor, a financial coach does not give financial advice. Their goal is to help you create new habits, or behavioral patterns, to move out of a harmful cycle of money management and into a healthy relationship with money.
While financial advisors are not counselors or there to help with a crisis, they DO have a passion for listening, getting to know their clients and helping them build healthy habits to reduce and avoid financial stressors. They help clients understand the basics of managing finances to establish a healthy foundation.
Think of a financial coach as an accountability partner for your money. You share your current situation and your goals, and they’ll share some options available (like refinancing loans and credit cards to consolidate debt for a lower interest rate) and help you stay motivated toward your goals. Having someone encouraging and checking in on you frequently can help you stay on track and just might give you the added boost of self-control needed when you are tempted to make a financial choice that could derail your plans.
Financial coaches also help their clients reach their financial goals by pointing them in the right direction for educational resources or information, tools and other products or services that might help.
How much does a financial coach cost?
Depending on the company you go through, a financial coach could cost anywhere from $100-300 per session, but that’s not the case at Verve. You can meet one-on-one with Verve’s certified financial coaches for personalized help with your finances, for free! Verve financial coaches are ready to help you set goals, develop a basic budget, manage financial hardships, improve credit scores and save for the future.
What is the difference between a financial coach and a financial advisor?
Financial coaches do not give investment advice or sell certain products or services. Coaches focus on helping you understand your spending habits, create a budget, outline a financial plan and set goals, understand how your emotions play a role in money management, learn how to establish an emergency fund and how to manage debt. Financial advisors build investment portfolios (often consisting of stocks, bonds, mutual funds and other investments) and help you manage your assets to grow your wealth, especially for retirement planning.