1. Financial Coaching: An Overview J. Michael Collins Prepared for presentation at the Centers for Working Families, July 22-23, 2010

2. 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 performance –Non-clinical; strengths based; non-crisis

3. Financial Coaching Relationship-based Client Directed’ Self-activated goals Goal Focused –Performance improvement Not an ‘expert’ –Goal setting Monitoring & Accountability

4. Financial Capacity Building Information Models Advice Models Mechanism Models Disclosures Print/Web Interactive Web Workshops One:One Reminders Technical expert (credentialed) Transactional guide (may have sales focus) Counseling (acute problem solving) Coaching Defaults Automatic Deposit Product constraints Therapy – diagnosis / Treatment Self Control: External Monitoring Executive Attention

5. 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).

6. 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 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

7. Coaching Models Staffing: Pro bono expert Paid staff Financial professional volunteer Lay volunteer Setting: Clients in Tax/IDA/other program School/work- place based Head Start Other

8. 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

9. Outcomes 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

10. Satisfaction: Most Coached Clients Are Happy with Services How satisfied are you with how well you and your coach work together to solve your problems? Source: CNM Coaching Survey

11. More likely to have Goals and Greater Confidence will Reach Goals Source: MoneyUP Client Survey

12. Greater Financial Security? Financial Management and Access to Benefits Source: Abt Associates CWF Survey

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

14. 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 participate Focus more on mechanism: self control and executive attention

15. J. Michael Collins Faculty Director, Center for Financial Security University of Wisconsin-Madison 7401 Social Science, 1180 Observatory Drive Madison, WI 53706 608-616-0369 jmcollins@wisc.edu For More Information: http://www.uwfamilyfinancialsecurity.org/http://www.uwfamilyfinancialsecurity.org/