Financial Coaching: A 4 Framework and Application of Coaching Models

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1 Financial Coaching: A 4 Framework and Application of Coaching Models February 18, pm-1pm CST Brought to you by: Center for Financial Security at the University of Wisconsin- Madison

2 Our Presenters Peggy Olive Financial Capability Specialist University of Wisconsin- Extension/Madison Becky Smith Director of Strategic Initiatives The Financial Clinic Stefan Hench Assistant Director of Services The Financial Clinic

3 Financial Coaching: Frameworks & A 4 Model Peggy Olive, MSW, PLCC Financial Capability Specialist University of Wisconsin- Extension/Madison

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6 Financial Coaching Fundamentals Relationship-based goal attainment Collaborative, egalitarian, respectful Facilitate self-directed learning Client identifies areas to work on Coach focuses on the person, not the problem Increase positive and lasting behaviors Open bank account Make budget and stick to it for 2 pay periods Fund savings accounts

7 Financial Coaching Influences Executive/organizational coaching Behavioral economics Positive psychology Plus additional fields self-determination theory, solution-focused therapy, motivational interviewing, adult learning theories, health coaching, etc.

8 Coaching Frameworks Provide a model for facilitation Different frameworks emphasize different philosophies and techniques Also similarities across frameworks coaching = results Resource: Evidence Based Coaching Handbook. Stober & Grant, Eds. (2006)

9 Prevalent Frameworks Solution-Focused Coaching GROW Model Goal-Focused Coaching Cognitive Coaching Motivational Interviewing

10 GROW Model (Whitmore) G = Goals long and short term R = Reality explore the current state O = Options courses of action W = What actions will take place & when Client self-responsibility accountability Coach is facilitator teacher, advisor, instructor

11 Goal-Focused Coaching (Grant) Coach facilitates process in which client: Sets a goal Develops an action plan Monitors results Evaluates/adjusts future actions 20 different types of goals (performance, avoidance, learning, etc.)

12 Cognitive Coaching Coach identifies and challenges client s self-limiting beliefs Change thought patterns = change behavior Examples: Should/Shouldn t Facts vs. Opinions

13 Motivational Interviewing Not a coaching method per se Linguistic approach to behavior change Counseling addictive behaviors and health/wellness coaching Similar skills as coaching BUT skills are applied differently

14 A 4 Financial Coaching Process

15 Designing the Alliance Client Coach Alliance

16 Designing the Alliance Logistics timeline, meeting schedule, check-ins Discuss how to work together coaching vs. counseling, education, referrals Plan ahead for sticky situations and closure Accountability to Alliance (not to coach) Tools: Coaching agreement, contract, contact info Skills: Listening, clearing, validating, celebrating

17 Setting the Agenda Coach: Goals and requirements of program Client: Bring goals for each meeting Big A / little A Tools: Assessments, prioritizing, planning worksheets Skills: Clarifying, articulating, reframing, self-management

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21 Creating Awareness Tools: Skills: Values worksheets Future self/visioning Different perspectives Powerful questioning, curiosity, validating, acknowledging, holding the client s agenda

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24 Defining the Action Given the client s new insight, what will they do next? Accountability to the Alliance, not to the coach Tools: Goal log, structures, technology, financial information, homework Skills: Brainstorming, requesting, challenging

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26 Additional Coaching Considerations Client readiness Coach qualities Coaching training Evaluation fyi.uwex.edu/financialcoaching

27 The Financial Clinic Building Financial Security, Improving Financial Mobility

28 The Financial Clinic s Model

29 Change Machine Platform

30 Applications of the Clinic s Model 1 US Department of Labor Bureau of Labor s Occupational Outlook Handbook

31 Financial Coaching Program 15 Coaching Sites in Manhattan, Brooklyn, Queens, and Bronx 6 Financial Coaches Funded by NYC Office of Financial Empowerment, Robin Hood, and others. Managed from Clinic HQ near Herald Square.

32 Career Advancement Program Employment Services Financial Development Greater Impact Challenge: Financial insecurity can create obstacles for job seekers Opportunity: Financial coaching tools and strategies can remove barriers Results: Greater efficiency, effectiveness, mission achievement

33 The Financial Clinic s Mantras Our financial coaching mantras are short phrases that embody our coaching practices that make change happen.

34 Clinic Coaching Mantra #1 Goal is the Driver

35 Goal is the Driver

36 Example: Financial Coaching Program Loss Leaders Crisis (ie. Tax notice, debt collector calling) Life moment (tax filing, graduation) Financial Coaching Customer Goal + Financial Security

37 Example: Career Advancement Program GOALS BANKING CREDIT Set employment and financial goals Establish a place to deposit and save wages Prepare for pre-employment credit checks

38 Clinic Coaching Mantra #2 Action Plan Answers All

39 Action Plan Answers All

40 Example: Career Advancement Program Over 2,160 credit reports downloaded More than 670 bank accounts opened Signed up more than 530 for automatic savings More than 2,200 job seekers served Over 325 established direct deposit

41 Example: Financial Coaching Program Financial Security Outcomes (from Change Machine) Assets: 123 customers established regular contributions to savings, with an average increase of $1063. Banking: 40 customers reduced banking fees an average of $179 per year. Credit: 250 customers increased credit scores by an average of 39 points. Debt: 341 customers reduced their debt by an average of $2159. Taxes: On average, customers save 21% of their refund (for those saving a portion of the refund).. All driven by customers Goals!

42 Clinic Coaching Mantra #3 Saving is an activity, not an amount

43 Example: Financial Coaching Program

44 Example: Career Advancement Program Establish Auto-Savings 31% increase weekly earnings

45 The Financial Clinic Keys to Success

46 Outcomes Framework Made Easy

47 Consistent Customer Engagement Tools

48 Real-Time Data For Real-Time Insights

49 Ongoing Professional Development

50 Access to a Community of Practitioners

51 Thank You for Joining! Contact us with questions: Becky Smith: Stefan Hench: Upcoming Events: New Ground Symposium: Tuesday, February 24 at 1pm ET Introduction to Change Machine: Tuesday, March 10 at 3pm ET

52 Q &A Peggy Olive Financial Capability Specialist University of Wisconsin- Extension/Madison Becky Smith Director of Strategic Initiatives The Financial Clinic Stefan Hench Assistant Director of Services The Financial Clinic

53 Please join the Center for Financial Security on March 17th for our next webinar on: Emergency Savings Please contact Hallie Lienhardt or with questions.