2. Created by the Dept. of Labor in association with the
Consumer Financial Protection Bureau (CFPB).
Services two core target populations: Transitioning
Veterans and Economically Vulnerable Consumers (EVC).
60 host sites- 40 at AJC’s and 20 at non-profit
organizations.
Certified Financial Coaches employed by Armed Forces
Services Corporation.
Funded by CFPB Civil Penalty Fund.
Financial Coaching Initiative
3. A method of providing financial education where
coaches provide advice and encouragement, and do
so in a process largely driven by the client. The
approach is strength based and uses encouragement,
accountability, and practice to empower the consumer
to change their behavior. Coaching is not intended to
replace other interactions with consumers, such as
financial counseling, but as a good compliment.
So what is Financial Coaching?
5. Differences
Coaching
The “Client” is the Expert
Explorative/
Supportive
Encouragement
Accountability
Non-Linear
Education/ Counseling
“We” are the Experts
Directive
Instructional
Guidance (advice)
Linear
6. Identify their unique financial goals
Connect goals to underlying values
Work towards goals with support
Stay motivated
Be accountable to their agreed upon actions
Role of a Financial Coach
7. Working in equal partnership
with a client
To help link their behavior
with their goals & values
8. Financial coaching is different because the focus is on the
client – not the coach. “ I can teach a client all about budgets
and a great investment strategy, but that is not what will make or
break their success. How well the client integrates and applies the
instruction is the key to their success. That is what makes
financial coaching different.”
The problem isn’t knowing what to do –
the problem is getting it done.
One –on –One
9. Questions?
Thank you again for your time
today. I will be happy to answer
any questions that you might
have.
Editor's Notes
My name is Kay Wade. Thank you for allowing me a few minutes to introduce myself and show you a little bit about what financial coaching is. The SM Workforce Resource Center will be hosting me as Veteran Coach.
*This is a new pilot program created by the Dept. of Labor in association with The Consumer Financial Protection Bureau. CFPB is a federal agency created in 2008 after the financial crisis. The CFPB helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules and by empowering consumers to take more control over their economic lives.
*Approximately 250,000 service members leave active duty each year and have a need for trusted financial management support resources to assist with the challenges of transitioning into civilian life. Challenges for Veterans can include: adapting to civilian life paying taxes, insurance, or retirement plans. They may need assistance with the use of their benefits, they may lack experience in money management or need advice to alter or adjust their transition plans.
Millions of consumers are economically vulnerable, including 48.7 million people living below the poverty line and 67.5 million that are underserved. These consumers often resort to using emergency sources of cash or alternative financial services. Some challenges they may have are limited financial resources, difficulty in obtaining credit, insufficient liquid assets or low resistance to using financial services.
*Veteran host sites were chosen based on their complement to Veteran assistance programs through the DOL. EVC sites were chosen based on their geographically diverse areas and availability to the target market.
*Each host site will have a full time financial coach and the necessary resources and equipment for the coach to do his or her job. Each financial coach that was hired has experience in the respective population group, demonstrated financial knowledge and experience working with clients on financial issues, and will be required to have the Association for Financial Counseling and Planning Education certification.
The role of my employer, Armed Forces Services, is as contractor and they will implement and manage the nationwide program.
*The Civil Penalty Fund (CPF) is funded by penalties from companies that violated the laws enforced by the CFPB. CPF is generally used to provide compensation to consumers who were harmed by illegal practices of Federal consumer financial laws but the Bureau can also use CPF funds for consumer education and financial literacy when payments to victims are not practicable. The Financial Coaching Initiative is the first program to be funded from the CFPB’s Civil Penalty Fund.
A financial counselor may have a set program that they ask their clients to try out, maybe even a class they can take. Not all programs fit all people. There is no scientific method to help someone with their finances. We offer the clients tools so they can figure out their own path. We work with the clients to discover the behaviors that may keep them from completing their financial dreams. We take the position that the client knows what's best in their situation.
Using positive psychology is based on the assumption that people are basically healthy and resourceful and are motivated.
Clients set the pace of the visits. We listen and recognize the power they already have.
1) Coaches seek to improve performance rather than achieve specific outcomes
2) Coaches become partners rather than me acting as an expert.
3) Rather than knowledge transfer and problem solving, coaches focus on watching the client change on their own
Together we focus on long term goals. The relationship between the coach and the client is based on their ability to co-create the process in a way that works for both parties. Always a 1-1 relationship, it is personal and confidential. They are not required to bring me paperwork or id. No forms are kept or administered. We are there to listen and be in the moment with the clients.
