April 2022
Financial Planning

Financial Coaching –
A New Specialty Within Financial Planning

If you haven’t heard of financial coaching, you soon will. 

A financial coach is comparable to a fitness trainer minus the workout equipment!   A trainer seeks to learn their client’s fitness goals, what they have tried in the past, what worked, what didn’t, as well as any obstacles along the way.  Likewise, a financial coach helps clients who are feeling stressed and anxious about money create and maintain healthy financial habits.  They work together to identify underlying values and goals to design an action plan with particular focus on budgeting, building savings, paying off debt and financial education.   A coach also serves as an accountability partner during this process to ensure clients adhere to the game plan.  In time, clients feel more in control, more at ease and more confident.

Coaches recognize that a relationship with money is more than dollars and data.  Money is emotional. Coaches help clients identify feelings, behaviors, and long-held beliefs that prevent them from achieving their goals and work to understand and overcome them.   For example, if parents or grandparents grew up during the Depression a client may view money from a scarcity mindset even though they have considerable wealth.   Or, in a family where the children had the latest and greatest of everything, as adults they continue to live as if all wants are needs and rack up massive debt.

Here are a few questions to ask yourself:

• Do I know the difference between a need and a want?

• Are my values and beliefs aligned with my financial goals?

• What are the reoccurring themes about money in my life that prevent me from achieving these goals?

To remain current with the latest trends in financial planning, in 2021 the CFP® board recognized the value of behavioral finance in its curriculum with the addition of a “Psychology of Financial Planning” unit. 

The gold standard in the financial coaching world is The Association of Financial Counseling and Planning Education (AFCPE) and its Accredited Financial Counselor (AFC®) certification.  This professional organization supports coaches and counselors with varied backgrounds who provide personal finance education to individuals and families.  They also set standards for best coaching practices, ethical behavior and a rigorous certification process.  I am currently seeking my AFC® certification, supported by the Copperwynd team.  If I can answer any questions or be of assistance, feel free to reach out to me at malport@copperwyndfinancial.com

If you have questions, please contact us.

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