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Coaching cwf Chicago by 98w4iY


									Financial Coaching: An Overview

                 J. Michael Collins
            Prepared for presentation at the

     Centers for Working Families, July 22-23, 2010
  Typical Features of Coaching
• As used across fields
• One-one relationship over time
• Focus on self-actualization
  – Practice skills and strategies with support
• Generally goal-focused
• Typical client has potential to improve
  – Non-clinical; strengths based; non-crisis
         Financial Coaching
• Relationship-based
• Client Directed’
  • Self-activated goals
• Goal Focused
  – Performance improvement
• Not an ‘expert’
  – Goal setting
     • Monitoring & Accountability
                    Financial Capacity Building

 Information                   Advice                        Mechanism
   Models                      Models                         Models

                                                         • Defaults
• Disclosures             • Technical expert
                                                         • Automatic
• Print/Web               (credentialed)
• Interactive Web
                          • Transactional                • Product
• Workshops
                          guide (may have                constraints
• One:One
• Reminders               sales focus)
                          • Counseling
                          (acute problem
           Therapy –      solving)
           diagnosis /
           Treatment                           • Self Control: External Monitoring
                          • Coaching           • Executive Attention
   Working Definition of Coaching
 “a collaborative solution-focused, result-oriented and systematic process in
 which the coach facilitates the enhancement of life experience and goal
 attainment of normal, non-clinical clients” (Grant, 2003).

Key Elements of Coaching                                         Steps:
• a focus on long-term outcomes (future
  orientation)                                                   1. Goal setting

• an ongoing, systematic, collaborative                          2. Action
  process for assisting clients to change                           planning
  behaviors                                                      3. Monitoring
• support to practice new behaviors
• building skills and teaching content
  based on the client’s unique needs
  and goals
 Coaching Low-income Clients
• Not financial or estate planning
• Fewer financial assets; less likely to have
  employer benefits
• May be eligible for public benefits or        Appreciate
  special private programs                      and excel with
• Credit management critical
• Lack of experience with financial             approach
  institutions, products

• Pressure on time and limited resources
       Coaching Models
Staffing:        Setting:
• Pro bono       • Clients in
  expert           Tax/IDA/other
• Paid staff       program
• Financial      • School/work-
  professional     place based
  volunteer      • Head Start
• Lay            • Other
               Facilitation Skills
            ICF Core Coaching Competencies

1. Setting the             3. Communicating
   foundation                 effectively
• Ethical and              • Active listening
   professional            • Powerful questioning
   standards               • Direct communication
• Establishing the
   coaching agreement      4. Facilitating learning
                              and results
2. Co-creating the         • Creating awareness
   relationship            • Designing actions
• Establishing trust and   • Planning and goal setting
   intimacy with the
   client                  • Managing progress and
• Coaching presence
• Goals – attainable, measurable
   – Formation of well articulated goal
• Confidence
   – In money management
• Financial Literacy
   – Gain knowledge about credit, budgeting and products
• Self-Control
   – Regular savings or debt repayment behavior
• Building Block for Future
   – Seeking additional products / services
      Most Coached Clients Are Happy with
     How satisfied are you with how well you and your coach
             work together to solve your problems?

Source: CNM Coaching Survey
       More likely to have Goals and
       Greater Confidence will Reach

Source: MoneyUP Client Survey
 Greater Financial Security?
Financial Management and Access to Benefits

                                     Source: Abt Associates CWF Survey
                        More Likely to Save
  Thinking about the last year, which statement best
      describes your typical savings behavior?

Source: Abt Associates CWF Survey
       Measuring Impacts?

• Self report + administrative data (FICO, account
  balances, etc)
• Valid comparison group
   • Ideal: Randomize offer
• But coaching has intrinsic bias of most motivated
  clients – hard to separate service from choice to
   • Focus more on mechanism: self control and
      executive attention
J. Michael Collins
Faculty Director, Center for Financial Security
University of Wisconsin-Madison
7401 Social Science, 1180 Observatory Drive
Madison, WI 53706

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