Financial advice firms would benefit from employing money coaches to help clients understand their financial behaviours.
Karen Eley, money coach at Women Talking Finance, had worked as a financial adviser in the past but said she later opted to work as a money coach as she was frustrated by clients’ repeating the same mistakes and wanted to understand how they could change and learn from them.
She said there was a four-step process to wealth coaching which covered people’s emotions around finance, their parents and upbringing, their financial patterns, and natural skills and attributes.
“There is not much known about money coaching, there is an assumption it is all about manifesting money,” Eley said.
“Having a financial planning background helps but the majority of advisers still don’t get it. I would like more advisers to understand it so they could have a better relationship with their clients.
“We explore the past to find out how clients can improve in the future. Clients find it very transformational, they feel more empowered and engaged with their finances.”
She highlighted much of the value of financial advice was gained from helping clients avoid mistakes which was something that could be supported by helping clients understand their emotions around finance.
With this in mind, she would like to see money coaches working within financial advice firms as an addition to financial advisers. She would also like to an association or community for money coaches to come together and learn from each other.
Money coaching was currently an unregulated practice as they did not work with products but Eley said she had kept her Australian financial services licence (AFSL) and carried out continuing professional development (CPD) in order to maintain her professionalism. She also referred clients to financial advisers to carry out any financial matters.