FINANCIAL COACHING TRAINING DAY 1. (Insert Dates)

Transcription

1 FINANCIAL COACHING TRAINING DAY 1 (Insert Dates)

2 HOW ARE PEOPLE GETTING BY IN THE U.S.? Nearly 44% of households are liquid asset poor One third of households has no savings account 28% are undbanked or underbanked

3 GROUND RULES AGENDA TRAINING REQUIREMENTS & CERTIFICATION TOOL KIT

4 Let s look at your clients. Draw a picture on flipchart paper of: (5 minutes) Half of the Group: What your clients financial lives currently look like The Other Half of the Group: what your clients lives would look like if they were financially secure Do Not use words. Hang your drawing on the wall when done.

5 WHAT IS FINANCIAL CAPABILITY? Understand features of savings products Able to open savings acct Access to savings acct Increased savings

6 Household Financial Security Framework VG02Q&feature=youtu.be

7 WHY FOCUS ON FINANCIAL CAPABILITY?

8 FINANCIAL COACHING Definition Is a client-driven process in which individuals and families work to reach personalized goals related to improving their financial well-being. Coaches should not provide expertise on their clients financial issues, but offer tools and resources, encouragement, and monitoring throughout the process of selfdirected behavior change. Source: RAISE Texas

9 CASE MANAGEMENT The National Association of Social Workers defines Case Management as the coordination of services on behalf of a person. The primary goal of case management is to optimize client functioning by providing quality services in the most efficient and effective manner to individuals with multiple, complex needs and ultimately to attain goals established in conjunction with the client. Case Managers develop the service plan. Case Managers assesses needs, arranges, coordinates, monitors, evaluates, and advocates for clients. The Case Manager develops and maintains a therapeutic relationship with the client and links the client with systems that provide needed services, resources, and opportunities.

10 FINANCIAL COACHING Definition FINANCIAL COACHING is not a replacement for financial education, counseling, legal or tax advice, or access to financial products and services. Coaches generally do not offer technical information or provide advice. IT S ABOUT THE CLIENT: Self-actualized goal attainment, Accountability and reinforcement of self-control, and Time-bound collaborative relationships.

11 FINANCIAL COACHING Where does it fall? Literacy Coaching Counseling Planning Therapy Source: RAISE Texas

12 Financial Stability Client Outcomes* For Financial Coaching Clients Achieved Positive Disposable Income Achieved Financial Stability 29% could achieve financial stability within 3 months 50% could achieve financial stability within 12 months * Based on a detailed analysis of the financial workbooks of 1,436 Financial Coaching clients in seven THRIVE partner agencies.

13 Coaching Distinctions

14 Financial Coaching Competencies Setting the foundation Co-Creating the Relationship Communicating Effectively Facilitating Learning and Results

15 Coaching Relationship

16 Coaching Relationship

17 C O A CH MODEL C = Client Competencies: assessing the person s ability to handle the current situation O = Outcome: agreement on the result the person is looking to achieve A = Action: defining the steps to achieve the desired outcome CH = Checking In: establishing accountability

18 Levels of Listening Level 1 - Internal listening Level 2 - Focused listening Level 3 - Global listening Intuition What can you listen for? Coachability Values Emotions Resources Inner Strengths Self-imposed Obstacles Missing Resources Therapy Referrals

19 Let s Test Your Active Listening Client, female/hispanic age 56, was left with a spinal cord injury after suffering an epileptic seizure in November Client was unable to continue working as a housekeeper and battled for months to get approved for SSDI, which was finally approved 2 months ago. Client s apartment lease was set to expire at the end of September and if she renewed they would raise her rent from $850 to just over $1000. Client has no family living in the country.

20 Let s Test Your Active Listening: Story WHAT DID YOU HEAR?

21 Values Your values are the things that you believe are important in the way you live and work. They (should) determine your priorities. When the things that you do and the way you behave match your values, life is usually good you're satisfied and content. Values exist, whether you recognize them or not. Understanding your values can really help you make decisions about how to live your life.

22 Personal Financial Priorities What are the top priorities for your financial life? How well are your financial priorities aligned with your values?

23 Beliefs About Money MONEY

24 Moving Beyond Fear & Limiting Beliefs Step 1: Pick a money topic to focus on and write it down Step 2: Write your fearful thought or limiting belief (your personal maxim) about this money topic

25 In Teams of Two: coach each other through these questions ( 5minutes each) 1) Say, Tell me about your topic and belief 2) How do you react when you think that thought (or believe that belief)? 3) What is the payoff / benefit from holding onto this thought / belief? 4) What is it costing you to believe that thought? 5) Who would you be without that thought or belief?

26 Now turn the thought or belief around, in terms of a positive message. If your thought was "I can never make enough money," then the thought becomes "I can always make enough money.". By yourself: 6) Write a positive message that is the opposite (or near opposite) of your fear or limiting belief: 7) If you lived this new thought, what would you do differently, and/or what would need to change?

27 VISION SETTING What will your life look like in 5, 10, or 20 years? Around the room are 6 posters labeled: Family/Friends; Work/Volunteer; Free Time/Hobbies; Personal Growth; Health; and Wealth. Take a marker with you and go to each poster and write down a couple bullets on each what you will be like or doing in future years.

28 The Marshmallow Test

29 Simple Strategies to Enhance the Regulations of Feelings and Emotions Situational selection Situation Modification Cognitive Reappraisal Cooling techniques Calling a time-out Reflection Modeling/Rehearsal/Role Play Self-Regulatory Plans and Implementation Strategies

30 Setting SMART Financial Goals A goal without a plan is just a wish. Antoine de Saint-Exupery Specific: Is it clear what you want to achieve? Measurable: Can tell when you achieved it? Action-oriented: Are there actions you must take to meet this goal? Realistic: Is this something you can realistically attain? Time-bound: Will you reach this in a specific time in the future? Or is this an ongoing goal?

31 Setting SMART Financial Goals: Example In 2 years, I will have saved $2,400 Specific: Save $2,400 Measurable: I ll put away $100 a month into a savings account Attainable/Action-oriented: I decrease my take-out/eat out budget by $100 by eating at home. Realistic: It will take a commitment, so I will have $50 automatically deposited into my savings account two times per month. Time-bound: 2 years

32 Setting SMART Financial Goals: MISTAKE #1: The goal is really an action item. Goal: create a resume Is this the ultimate goal? Does this provide a motivating vision? If not, what could the real goal be? Goal: pay my bills on time Is this the ultimate goal? Does this provide a motivating vision? If not, what could the real goal be?

33 Setting SMART Financial Goals: MISTAKE #2: The action is not specific or measurable. Goal: Increase Income; Action: More $ What does this mean? Would $1 more be enough? How could this be more specific? Why is that important? Goal: Grow Savings; Action: make deposits Does this action provide a clear measurement for success? Is this action specific? Is two deposits enough?

34 Setting SMART Financial Goals: MISTAKE #3: The timeframe is not specific, or is not realistic. Goal: Get a job for at least $30,00, with benefits; Timeframe: Soon What does soon mean? Could it change over time? Does this help create an action plan? Goal: Increase credit score by 100 points; Timeframe: in two months How long will it take to reach a big objective like this? Is two months realistic? What can happen if the target is not met?

35 Activity Review SMART Goal Worksheet on page 13: Pick one of your financial priorities, you identified earlier, that is most important to you right now and turn it into a SMART goal.

36 Powerful Questions 1) Go to page Take out your yellow highlighter. You will have about 10 minutes to review the questions. Highlight one question per category you believe you may use. Then, write down three questions you will commit to using this week and create it into a SMART goal. 2) Pair off with someone you haven t worked with yet. Take your books. Take turns discussing the questions you ve each chosen and your smart goals. Coach each other through your SMART Goals.

37 Budgeting Four steps to budgeting: 1. Keep track of your daily spending 2. Determine what your monthly income and expenses are the month before they are due. 3. Find ways to decrease spending 4. Find ways to increase income

38 Spending Tracker Weekly Spending Tracker - Daily Week 1: Day Sunday Monday Tuesday Wednesday Thursday Friday Saturday Items Amount Total Day: ITEM TOTAL PER CAT. GRAND TOTAL CASH Date: DEBIT CARD CREDIT CARD CHECK

39 Spent Week 1 Savings Saving for goals, for emergencies, for children s education, for retirement, for holiday purchases, for Debt payments back-to-school shopping Credit card, installment loan, payday loan, pawn loan, and car title loan payments; other loan payments Total Spent Week 2 Total Spent Week 4 Total Spent Week 4 Monthly Total Housing Utilities Household supplies and expenses Groceries Eating out (meals & beverages) Rent, mortgage, insurance, property taxes Electricity, gas, water, sewage, phone, television, internet service, cell phone Things for your home like cleaning supplies, kitchen appliances, furniture, other equipment Food and beverages you bring into the home to prepare, including baby food and formula Any meals or beverages purchased outside of the home

40 Monthly Payment Schedule Here is a sample week to show you how the tool works: Week: Sun. Mon. Tues. Wed. Thurs. Fri. Sat Total June 4 Date 6/4 6/5 6/6 6/7 6/8 6/9 6/10 Bills Cell: $125 Car Note: $325 $450 Income Child Support: $125 Pay Check: $700 $825

41 Improving Cash Flow 1. Smooth out cash flow by avoiding large periodic payment by making smaller payments throughout the month or year. 2. Slim down your spending. 3. Increase income or other resources. Take a look at the suggestions on page 23

42 What s Your Motivation Style? Take five minutes to complete the questionnaire on page 25 goal-oriented, you ll probably reach for your goals through a direct and obvious route. relationship-oriented, you take part in learning mainly for social contact. learning-oriented, the practice of learning, itself, drives you.

43 What s Your Motivation Style? DISCUSSION How do you think it would be helpful for a participant to know their motivational style? How would it be helpful for you? Scenario: You re working with a participant on their budget. Provide one technique you could use to support your participant in developing their budget for each of the motivational styles.

44 Establish a SMART Goal Help client establish a SMART goal. What are their financial priorities? Values Clarify that client understands rationale behind financial decisions What s their motivation? What values does this goal support? Barriers Help client identify barriers/obstacles and ways to overcome them What are their beliefs about money? What are their fears about this goal? Supports Support client as s/he works toward financial goals and practices new behaviors and skills Serve as a sounding board for client Help client celebrate successes Keep client motivated Respond to client s questions Provide relevant resources and referrals for client as needed Help client conduct relevant research as needed Actions Collaboratively plan incremental steps towards achieving goals: short term to long term. Help client implement strategies and take incremental action steps to meet personal priorities Facilitate financial behavior changes over time Celebrate the wins! Accountability Accountability rests with your client, but check in on their progress to support their commitment. Ask what they need. Are they wrestling with their Saboteurs and getting stuck in a comfort zone? What next step will keep them moving? Have they truly committed to their commitment to action? What do you feel are your chances of success? What will you do, by when, and how will I know you ve done it? What s the best way to communicate your accountability for your actions and to whom?

45 How Financial Coaching Can Help Your Clients by Identifying: What financial capability services will make the best impact on our clients? Who will deliver financial capability services to target program clients? How will our operations change for integration?

46 Part A: Target Programs Target Program Head Start Total Number of Clients Currently Participating in the Program 150 parents & 175 children per year

47 PART B: Client Financial Capability Analysis (i) Demographics Demographic Description of Program Clients Category Demographic Characteristics Age Most are ages 18 to 35 Employment Many have low-wage jobs; some are unemployed and Education Status Public Many are receiving SNAP (food stamps), TANF (Temporary Assistance Assistance for Needy Families), and/or WIC (Women, Other Distinguishing Characteristics Infants, & Children) benefits All are parents of young children, mostly ages 3-4; many are Hispanic or African American

48 (ii) Financial Capability Financial Capability Topic Money Management Income Supports Financial Products & Services Credit & Debt Savings & Investments Client Analysis -Struggling with basic needs and use our emergency services -High spending needs in August (back to school) and December (holidays). -Child care expenses during the summer increase. -Aren t sure what tax credits they could get -Usually pay someone to file their taxes -Don t advocate for child support -Lots of mistrust and bad experiences with bank accounts -High use of payday lenders -Many parents said they want to learn more about how to pay off their debts and fix their credit. - Many want to buy a car but struggle to save Consumer Protection & Insurance - Most are eligible for Medicaid. - Need car insurance - Need to learn about predatory services

49 (ii) Financial Capability Summary Summary of Clients Current Financial Capability List the program into which you will integrate financial capability, and summarize the findings from the analysis you conducted in (ii). Target Program: Head Start Target Clients: Parents in Parenting Classes Summary of Clients Financial Capability: Debt: Paying off debt is a priority so it isn t draining their monthly income. Credit: Want to improve their credit so they have more housing and job options, and more credit product options for when they re ready to buy a car or house, or pursue postsecondary education. Taxes: Want to learn more about free tax filing options and available tax credits. Budgeting: Having enough money to meet basic needs from month-tomonth and during months when their expenses are a lot higher (summer, backto-school, holidays) is a challenge.

50 1) Watch: HOMEWORK The Psychology of Living Under Scarcity: or The Golden Circle: Start with Why or 2) Activity: What three (3) powerful questions will you exercise this week What two activities/exercises will you test out this week 3) Challenge Track your expenses for this week and create a new budget to support your SMART goal