1. Financial Coaching A Proven Approach to Building Consumer Financial Capability

4. Many Still Struggling to Achieve Financial Well-Being Financial Freedom to Make Choices Greatly Limited for Many Families  Control over day-to-day finances → HH income poverty rate 14%, → Underemployment 12.5% → 1 in 4 jobs in US is low wage  Capacity to absorb a financial shock → 44% of American households are “liquid asset poor”  Be on track to meet financial goals → Homeownership rates down at 63.5% → High student loan debt → Only 45% of workers saving for retirement

5. A Complicated Picture Living paycheck to paycheck Less likely to need the most complicated services Few financial assets Eligible for public benefits or special private programs Credit management Lack experience with financial institutions or products More pressure on their time and resources Check out www.usfinancialdiaries.org/householdswww.usfinancialdiaries.org/households

6. Creating positive financial actions and healthy financial behaviors Increasing financial knowledge and confidence Applying financial knowledge and skills Increasing access to financial products and services Financial Capability Education + Coaching + Access = Financial Capability Set of tangible outcomes Interrelated behaviors How people manage resources + make decisions Holistic Behavior change (what a person does) + knowledge gain (what a person knows)

9. 54% Clients with no savings started to save Median savings $668 48% Clients with some savings initially increased savings Median increase $938 55% Clients with unsecured debt decreased debt Median decrease $3,005 47% Clients raised their credit scores Mean increase of 59 points

10. 96% Clients who did not know how to obtain a credit report gained that knowledge 97% Clients who did not understand a credit report gained that knowledge 77% Clients who didn’t know how to build or improve their credit attained that skill Key Findings: Knowledge

11. 47% Clients who initially didn’t feel they managed money well felt more confident 38% Clients who initially didn’t feel in control of their finances felt more capable of doing so 62% Clients who reported feeling stressed about their financial situation no longer felt that way after participating in coaching 30% Clients became more confident in their ability to weather a financial crisis should it occur

12. Financial coaching is a flexible, adaptable approach Coaching can be used in a range of different programs Organizations should choose an approach that: - Supports their mission - Matches their program and staff resources - Strengthens existing service offerings Key Elements of Program Design

13. Key Elements of Coaching  Focus on long-term outcomes  Ongoing, systematic, collaborative  Supports new behaviors  Buildings knowledge and skills Steps 1. Goal Setting 2. Action planning 3. Monitoring Steps 1. Goal Setting 2. Action planning 3. Monitoring

14. Counseling vs. Coaching Counseling Definition: Service aimed at providing specific information and guidance intended to solve a defined event or problem. Focus: Addresses specific issues or events through knowledge transfer and skill development. Characteristics: Practitioner- driven process that provides a framework to educate, offer expertise and feedback. Coaching Definition: Service aimed at helping clients focus on behaviors to achieve self-defined financial goals Focus: Achieving client- determined goals an long-term outcomes through behavior change. Characteristics: Client-driven process. Provides a framework for goal setting, assessment, action planning and accountability.

15. Primary Traits of a Good Coach The ability to establish and build trust The ability to communicate via active listening and powerful questioning The ability to follow through and monitor progress The ability to encourage and motivate University of Wisconsin Extension, Center for Financial Security

17. What is one short-term financial goal you have?

18. Where are you now in relation to your financial goal?

19. What are some action steps you can take now to move you toward your goal?

20. A Coach Facilitates the Client’s Journey by… Helping clients to articulate “there” Helping clients to explore and discover “here” Designing a roadmap and planning incremental steps to get from here to there

21. Asking Powerful Questions Be genuinely curious Ask powerful, open questions Avoid leading questions Use closed questions strategically

22. Coaching Models Best Practices from Around the Country

23. Coaching Program Models Coaching following financial education Coaching linked to eviction prevention Coaching integrated across multiple programs Group coaching

24. Coaching Follows Financial Education N HS Phoenix triages customers coming for home ownership classes. Customers who are more than 6 months from purchasing home referred to financial education classes In workshops, customers do budget worksheet and goal setting 1:1 coaching to focus on personal circumstances: goals and action planning

25. Example: Community Housing Works (CHW) in San Diego Residents with eviction notices due to late rent payment referred to financial coach Crisis is opportunity for coach to build trusting relationship with resident Coach and resident develop repayment plan, approved by property management Coach and resident continue meeting until rent is fully paid Many residents continue with Financial Health Club and coaching to reach other financial goals: eligible for a matched savings program if they continue in the program. Financial Coaching and Successful Renters

26. Coaching Integrated into an Existing Service EX ample: CDC of Long Island, Centereach, New York Coaching offered as part of “Financial Fitness” classes Small coaching staff Partner with Credit Union and Greenpath Credit Union

27. Working Together for Strong Communities NeighborWorks Center for Homeownership Education and Counseling Example: The Neighborhood Developers in Chelsea, MA Developed a Financial Health Club Incorporate Coaching approaches in Financial Education classes Partnership for Career Coaching Group Coaching

28. Financial Capability at NeighborWorks America Take part in Financial Capability training and certification Learn about Success Measures financial capability outcome evaluation Learn more about financial coaching as an effective approach to building financial security through our project brief series http://www.neighborworks.org/Homes-Finances/Financial-Security