Financial Coaching: Helping clients navigate the world of finance

Financial coaching didn’t exist in the UK when I began to consider alternative ways to work with clients on their finances beyond the traditional advice model. After 10 years as an independent financial adviser, I became disillusioned with the industry and how advice mostly focused on clients who had already accumulated sizeable assets. I also felt that the sale of products as such a significant component of the advisory service muddied the water, not allowing time for the full range of support many people really needed to help them understand and navigate all the complexities surrounding their financial decisions and relationship with money.

In 2002, I launched Wise Monkey Financial Coaching, with a mission to demystify the world of finance, relieve people’s stress relating to their financial worries and help them use their resources effectively so that they could reach their highest aspirations in life. By following my own course, I formed the UK’s first Financial Coach service. The service changed and developed over the years as I integrated new coaching skills, tools and methodologies into my work. And in 2010, I developed the training arm of the business, training others in the skills and techniques to build their own Financial Coaching practice.

My definition of Financial Coaching

“A non-judgemental, calm, and supportive partnership that allows clients to navigate the emotional and practical aspects of their financial lives. It empowers clients to set financial goals, align their behaviours with their aspirations, and build a healthier relationship with money, enabling confident control over their finances.” Simonne Gnessen

The role of a Financial Coach: Guide, Mentor, and Coach

The version of Financial Coaching that I practice and that we teach, offers an integration of different roles, blended together in an intuitive way depending on the needs of the client.

As a guide, we can help clients navigate the complex world of finance, offering clarity on the options available. As a mentor, we share knowledge and experience to support informed decision-making. But the most transformative aspect of our work is coaching, where the client is the expert, not us. While we have technical expertise, they are the experts in their own lives.

Coaching helps clients gain clarity on what truly matters to them and identify any obstacles that may be holding them back. This process allows clients to understand themselves better through the lens of money, shedding light on their mindset and financial behaviours. As they become more aware of these factors, they are empowered to take actionable steps that align with their deepest values and aspirations.

How Financial Coaching differs from traditional Financial Advice

Financial coaches are not regulated to give advice. Our sole focus is on empowering clients to make informed decisions that are truly aligned with their values and goals. There's no bias or agenda - just a commitment to helping people develop a healthier, more empowered relationship with their finances.

Unlike traditional financial advice, which is often limited to specific goals or financial products, financial coaching offers a neutral space for clients to deeply consider their goals, build financial knowledge, explore options and hold them to account on action. We take a broader approach that addresses both the practical and emotional/psychological aspects of personal finance. Coaching can help clients delve into the beliefs and habits that influence their financial decisions, providing a holistic approach that helps them fully navigate their relationship with money.

Plus, the ongoing nature of the financial coaching relationship allows for greater accountability and support. Clients work closely with their coach to develop action plans, overcome obstacles, and stay motivated - a level of personalised support tailored precisely to the needs of the client. This could be in the form of a few one-off sessions, or it could be monthly sessions for a period of time. We provide whatever level of coaching, guidance and support they need, ultimately aiming to empower clients so that they no longer need to work with us.

Addressing the emotional and psychological aspects of money

Money is not just a matter of numbers; it's deeply intertwined with our emotions and psychology. Many of us have ingrained beliefs and habits around money, often formed unconsciously, that shape our financial choices.

This holistic approach is particularly valuable for individuals who may be struggling with money-related mindset issues or behaviours that are holding them back from achieving their financial goals. As a financial coach, we can work with clients to uncover the underlying beliefs, assumptions, and narratives that are driving their habits and decisions.

By helping clients gain a deeper understanding of their own money mindset, we can start to address any barriers that may be preventing them from taking action and help them align their financial decisions with their values and goals. This process isn't just about achieving financial stability; it's about helping clients transform their relationship with money to build and sustain a healthier and more empowered relationship with money.

The benefits of Financial Coaching

The benefits of financial coaching are extensive. Clients receive personalised guidance and accountability, helping them stay on track with their financial plans and work through anything that is getting in the way. This ongoing support empowers individuals to make informed decisions that are aligned with their personal values and long-term objectives. The coaching process addresses not only practical financial management but also the emotional aspects of personal finance, providing more holistic support.

The growth of Financial Coaching in the UK

Financial coaching is a relatively new field in the UK, but it’s gaining traction as more people seek comprehensive, client-centered financial guidance and support. This holistic approach fills a crucial "advice gap" left by traditional financial services, particularly for those who feel underserved by the conventional focus on products.

Despite the fact that most people are still unaware that financial coaching exists, the demand is growing. People are increasingly recognising the importance of not only managing their finances effectively but also understanding their relationship with money. As a result, the field is expanding, offering new opportunities for those seeking a deeper, more personalised approach to financial well-being.

I’m proud to be at the forefront of this movement through my own Wise Monkey Financial Coaching service as well as our training and the community of Financial Coaches that we’re supporting. Our collective mission is to offer a compassionate and empowering service that extends beyond the traditional boundaries of financial advice.

To find out more about training to become a Financial Coach, visit our training site. 

REGISTER HERE FOR OUR NEXT TRAINING….EARLY BIRD ENDS 31 JAN 2025

We also run a Personal Finance Seminar Series starting on 4th March 2025, which people can attend ahead of the training if their background isn’t in personal finance or they want to top up existing knowledge.