A personal finance coach is a type of life coach who assists another person or persons in meeting their financial goals. Financial coaches, in comparison with financial advisors, don’t give financial advice such as suggestions around investment strategies or particular financial products and services. Instead, they help individuals understand how to implement better money habits, such as how best to pay down credit card debts or how to identify which bank accounts offer the best solutions for that individual. The goal in financial coaching is to help teach financial literacy in order to set up those who utilize the service for long term financial success. A personal finance coach does not have to be limited to just one individual. Partners can utilize the same personal finance coach to make sure that they are on the same page regarding financial decisions.
Deciding to work with a financial coach can be beneficial to an individual in a number of ways. Financial coaching is about teaching and upholding positive routines. Rather than falling into bad habits, individuals can rely on personal financial coaches to help them develop good habits around money management. Financial educators aim to help individuals understand the thought process behind their financial decisions, so that they can arrive at rational and informed conclusions. This means that individuals who utilize financial coaches can have advice on both short term and long term goals, such as setting up a monthly budget and paying off student loans.
Personal financial coaches are also useful for partnerships, both in romance and in business. A financial coach is an objective third party who can help mediate financial decisions and make sure that everyone has the same strategies and goals in mind as they continue the partnership. Coaches can give recommendations around how to have financial discussions in the most useful ways, so that no one feels left out or unheard. This can go a long way in preventing arguments around finances.
Banks and financial institutions can benefit from having personal finance coaches on staff for mean reasons, including: