What is a Financial Coach?

A financial coach is a professional who helps individuals with financial literacy, development of financial goals, creating a budget, and managing their finances more effectively. The goal of a financial coach is to provide guidance and support to help their clients achieve their financial objectives and make informed decisions about their money. Coaches teach you skills and tools to help you gain control over your finances.

A financial coach may provide a variety of services: budget planning, debt reduction strategies, and guidance regarding insurances you need (and don’t), planning for children going to college, planning for aging parents’ care, etc. Coaches assist with overcoming financial obstacles and developing good financial habits, such as saving, giving and investing, including a detailed plan on how to do this (I follow Dave Ramsey’s Baby Steps https://www.ramseysolutions.com/dave-ramsey-7-baby-steps) and offering referrals to other professionals that you may need to help you on your journey to being financially free.

Unlike financial advisors who typically charge fees based on assets under management, a financial coach may charge hourly or flat fees for their services. Services can also be provided individually or in a group setting. Financial coaches can be particularly beneficial for individuals who want to improve their financial situation, including added support and accountability.