Financial coaching and financial therapy

Financial Coaching

Georgia Consortium

February 26, 2015

Atlanta Financial Psychology Mary Gresham, Ph.D.

APA Stress In America

In the last year

The stress gap

Stress management

Women and Money Stress

Stress response

• Give money

Financial interventions

• Give money

• Debt counseling

• Give money

• Debt counseling

• Self-help group

• Give money

• Debt counseling

• Self-help group

• Financial literacy

• Give money

• Debt counseling

• Self-help group

• Financial coaching

• Give money

• Debt counseling

• Self-help group

• Financial coaching

• Financial therapy

What is coaching?

What Coaching Is Not

• Lead

Sports Coaches

• Lead

• Motivate

Sports Coaches

• Lead

• Motivate

• Guide

Sports Coaches

• Lead

• Motivate

• Guide

• Instruct

Sports Coaches

• Lead

• Motivate

• Guide

• Instruct

• Discipline

Sports Coaches

• Lead

• Motivate

• Guide

• Instruct

• Discipline

• Mentor

Sports Coaches

• 1980’s

History of coaching

• 1980’s

• Evolved out of corporate

History of coaching

• 1980’s

• Help employees develop

skills, engagement

History of coaching

• 1980’s

• Help employees develop

skills, engagement

• Improve the business

History of coaching

• 1990’s explosion

History of coaching

• New fields of coaching (life,

wellness, relationship,

career, etc.)

History of coaching

• New fields of coaching (life,

wellness, relationship,

career, etc.)

• ICF developed certifications

History of coaching

• Estimate 50,000 identify as

coaches worldwide

Current

coaches worldwide

• No certification required

Current

coaches worldwide

• Limited research base

Current

coaches worldwide

• Flexible models, locations

Current

coaches worldwide

• Flexible models, locations

• Low stigma

Current

Coaching

Client readiness

Coaching

• No research base

Private $ coaching

• Expensive

Private $ coaching

• Expensive

• Private market

Private $ coaching

• Expensive

• Private market

• Buyer beware

Private $ coaching

• 2009 study of 2100 clients

Effectiveness of private

coaching

• Female, middle age,

educated, 80K mean income

coaching

• Primary goal: Self confidence

coaching

• 3% financial goals

coaching

• 27% financial benefit

coaching

• 27% financial benefit

• 96 % would do it again

coaching

• 2010 use of “signature

strengths” predicted goal

progress in 240 college

students

coaching

• 2013: Study of 18 studies in

organizations

coaching

organizations

• Coaching increased goal

attainment by 70%

coaching

organizations

attainment by 70%

• Coaching significantly

improved specific skills

coaching

organizations

attainment by 70%

• Coaching significantly

improved specific skills

• Moderate effect: work

attitude, well-being, coping

coaching

Coaching Low Income

• Pilot studies:

• Central New Mexico

Community College

• Financial Clinic of NYC

• Center for Working Families

Effectiveness of financial

coaching

• Pilot studies:

• Central New Mexico

Community College

• Coaching helped students

adhere to a budget

coaching

• Financial Clinic of NYC

• Coaching clients significantly

more likely to have a goal

and feel confidence about

achieving it.

coaching

• Center for Working Families

• Coached more likely to pay

more than minimum

balance, save and pay bills

on time.

coaching

• A. Financial services provider

• B. Only ICF certified coach

• C. Mental health professional

• D. Anyone

Who can be a financial coach?

What is a financial coach?

• Beliefs and emotions block

behavior change

When coaching does not work?

behavior change

• Unmotivated/unready to

change

behavior change

change

• Functional impairments

behavior change

change

• Functional impairments

• Coach/client mismatch

Financial therapy is the study

of the cognitive, emotional,

behavioral, relational,

economic and integrative

aspects of financial health.

Financial Therapy

The Money Taboo

Atlanta Financial Psychology Atlanta Financial Psychology

Sigmund Freud

Money matters are

treated by civilized

people in the same

way as sexual

matters….with

inconsistency,

prudishness and

hypocrisy.

“Remember a few years ago when everything was sex, sex, sex?”Atlanta Financial Psychology 77

The Problem with Financial

Literacy

Atlanta Financial Psychology 79

Schemas

• Thoughts and behaviors we use to simplify the complex

Schemas

• Memories, feelings, decisions, core beliefs that are mostly unconscious

Schemas

• Efficient

Schemas

• Efficient

• Find confirmation for them

Schemas

• Efficient

• Find confirmation for them

• Developed in childhood when we do not have cognitive ability to process complicated constructs like money

• Money Avoidant

• Money Centric

• Relationship

3 Types of money issues

Common money avoidant

schemas

• Money is not important

• It’s not nice to talk about money

• Money is bad, dirty

• I don’t really need/deserve money

• I don’t like rich people and don’t want to be like them

• Money is the man’s job

• The universe will provide for me

• Denial of money’s function

• Guilt/shame about having

• Under earning

• Risk avoidance

• Task refusal

Money avoidant

• More money will make things better

• I deserve to have money

• I deserve to spend for what I want

• Money gives my life meaning

• Net worth=self worth

• You can’t trust people when it comes to money

• Spending money is showing love and caring

• There’s can never be enough money

• Work hard and you will have money

Money centric schemas

• Workaholic

• Excessive risk taking

• Hoarding, miserly

• Compulsive

spending/shopping

• Neglect of relationships,

feelings

Money centric

• If I give money then others will love and care for me in return.

• If I give my children what I never had, they will have a better life.

• If I can afford it, why not spoil them?

• You should always have a secret account

• It will just upset things if he/she knows how much I spent

• Don’t tell your mother/father how much things cost

• It’s not my job to look after the money.

• I don’t want to have to take care of myself

• I deserve to be supported

Relationship schemas

• Financial infidelity

• Financial incest

• Financial

dependency/regression

• Financial enabling

Relationship issues

• A. Financial services provider

• B. Mental health professional

• C. Accredited financial

counselor

• D. Anyone

Who can be a financial

therapist?

Financial Therapy Association

Who can be a financial

therapist?

• Great potential to help

Financial Coaching/Therapy

• Clients benefit from

individualized approach

• Clients enjoy the

focus/attention

• Clients enjoy the

focus/attention

• Effective when other

interventions are not

• New fields

• Lack of professional

definition and licensing

• New fields

• Consumer confusion

• New fields

• Training issues

• New fields

• Training issues

• Small research base

Thank you

Financial coaching and financial therapy

Economy & Finance

YW Financial Coaching Program Heidi Tippetts Financial Coach

NLP, Coaching, Hypnosis & Time Line Therapy...NLP, Coaching, Hypnosis & Time Line Therapy ™ Empowering you to ‘Transform your Career from Lead into Gold’ You will receive 4 International

Financial Stewardship Coaching at Luther Seminary · Financial Stewardship Coaching at Luther Seminary Preparing stewardship leaders for Christian communities. 2 | Financial Stewardship

Coaching For Financial Success Transcript

CAREER SERVICES Advising Guidance Counseling Placement Coaching Mentoring Therapy

FINANCIAL COACHING: BRIDGING THE GAP BETWEEN …

Figueroa Financial Paquetes de Coaching Packages 2013...Paquetes de Coaching Financiero 2013. Figueroa Financial - 7 Opción 1: Paquete de Coaching Financiero de Bronce Consulta inicial

Application of Solution Focused Coaching in Occupational Therapy for Mental Health ... · 2015-05-29 · Application of Solution Focused Coaching in Occupational Therapy for Mental

Coaching Versus Therapy€¦ · Difference Between Coaching and Therapy? Participants identified between one to six critical differences between coaching and therapy. Their comments

Snapshots of Financial Coaching - For Your Information of Financial Coaching ... Planning for my financial future Saving money. ... • CNM Coaching model not exclusively about

The business mindset: and FREE Business, Therapy and Coaching Toolkit

Rpg Financial Coaching Story03

RSA Vocational Rehabilitation ProgramFederal FY 2013 ... · Web viewJob development and coaching, tutor program management, financial aid, scholarship, and developmental therapy assistance,

Emotional Focused Therapy - Coaching Clients (LS GREENBERG).pdf

Using Coaching in Financial Advisory

Cognitive-Behavioural therapy effects on athlete performance: Coaching Implications

Financial Coaching A Proven Approach to Building Consumer Financial Capability

Introduction to Coaching - ATS · 2014-05-01 · Goals of Financial Coaching “The job of financial coaching is to help you get your financial life in order, clear the way to a sense

Abintus Workplace Coaching - Abintus€¦ · Web viewComparisons Coaching vs Therapy / Counselling Training, coaching mentoring and counselling / therapy are all on a similar continuum,

Therapy, Depth Psychology and Executive Coaching … · and Executive Coaching: where and how do they meet? by John Schuster The fields of coaching and therapy/counseling are distinct,