1. Financial CHANGE Program 2010 – 2011 COACH TRAINING October 12, 2010

2. Financial Coaching using Goal Attainment Relationship-based goal attainment –Support to reach self-activated goals Performance improvement –Simple goal exercise –Follow-up weekly Examples of goals: Open bank account Make budget and stick to it for 2 pay periods Sign-up for benefits; fund savings accounts Not an ‘expert’ –goal setting and monitoring Accountability

3. Working Definition of Coaching Key Elements of Coaching a focus on long-term outcomes (future orientation) an ongoing, systematic, collaborative process for assisting clients to change behaviors support to practice new behaviors building skills and teaching content based on the client’s unique needs and goals Steps: 1.Goal setting 2.Action planning 3.Monitoring “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).

4. Coaching Low-income Clients Less likely to need more complex financial planning services Fewer financial assets; less likely to have employer benefits May be eligible for public benefits or special private programs Credit management critical Lack of experience with financial institutions, products Pressure on time and limited resources Appreciate and excel with financial coaching approach

5. Facilitation Skills ICF Core Coaching Competencies 1. Setting the foundation Ethical and professional standards Establishing the coaching agreement 2. Co-creating the relationship Establishing trust and intimacy with the client Coaching presence 3. Communicating effectively Active listening Powerful questioning Direct communication 4. Facilitating learning and results Creating awareness Designing actions Planning and goal setting Managing progress and accountability

6. Components of Financial Coaching

7. 7 Coaching Checklist – Common Steps  Initial contact with client (in person)  Schedule appointment  Talk about role  Make notes about the client already on file  Follow up contact (phone, email or in person)  Next coaching session  Document progress and notes  Schedule follow-up contact with client (phone or in person)

8. 8 “What are your financial goals?” Late Payments “Do you want to pay all your bills on time? How is that working for you? Are you paying any late?” “How do you pay your bills?” “Are you opening the mail immediately?” “Are you paying immediately, or cutting it close and/or getting late fees?” “Do you pay bills around pay day, or as soon as you get them?” Budgeting for savings “Do you want to be a better money manager?” “Are you saving for something?” “Do you have something saved, like for a rainy day? How about for retirement?” “ Have you checked with your boss or HR people about what benefits you may be able to sign up for?” Probing Questions ** More examples later when we go through the Coach’s Notebook

9. 9 Goal Setting Wheel Health Benefits / Coverage Banking Debt Savings Credit Record Budgeting Renters / Homeowners / Car / Life Insurance Retirement

10. Progress Solicit client feedback and move towards “graduation” Establish strong measurement of goals, outcomes

11. Financial Coaching Institute 2009-2010 Pilot Program last year 12 coaches matched with 12 partners 10 partners made it all the way through to April 2010 “Graduation” Coaches noted progress is slow, but none the less certain over time, especially if partners were self-motivated

12. Examples of Goals Reached Executive Attention & Budgeting Caught up on bills Set up automatic payments to avoid late fees Organized bills and payments and began opening bills and paying on time Started tracking receipts to identify spending habits Created a budget and followed it Is now balancing checking account to avoid overdraft fees Tracking Income and Expenses Debt and Credit Related Discovered how she could pay a little extra off the credit card balance each month Used tax refund to pay off large portion of credit card debt Made plan to pay off high interest loan Identified credit cards w/ high interest rates to pay off 1st Learned how to obtain credit report Developed plan of attack for debt Paid off outstanding debts Became client of Greenpath's debt management program Got a second, part-time job in order to pay off debt Saving Signed up for money savings option for monthly bills Started a savings account with tax refund and paid off bills Regularly making bag lunches instead of eating out Established Checking and Savings Accounts Learned why tracking expenses and keeping spending records was important and implemented successful systems to save for large items/expenses/goals for family

13. Coaches’ Feedback Coaches’ Meeting Feb 3, 2010 Higher success rate for Partners who have a clear and inspiring goal, and are self-motivated. Discussed difficulty of refraining from giving advice Coaches wished their partners had a more supportive social network which also encouraged them to reach their financial goals Satisfaction with monthly workshops: the presentations gave them facts, legitimacy, and good conversation topics for their coaching sessions to follow. Suggestion was made for the program to supply more coaching resources

14. What We’ve Added This Year Coach’s Notebooks with training materials and usable forms Referral List (in Coach’s Notebook) Co-Active Coaching Book at FEC Coaching Website –Training materials –Forms –Links –A work in progress– this is going to get much more useful in coming months!

15. Thank you! Questions: J. Michael Collins jmcollins@wisc.edu