The Definition of Financial Guidance / Financial Guidance Definition

The National Financial Educators Council financial guidance definition is:

“Sharing expertise and directing clients toward resources and education that can help them make decisions based on their personal goals. Financial guidance is the act or process of pointing clients through education, research, reflection, and other ways to help them make their own decisions.”

Breakdown of the Financial Guidance Definition

The NFEC’s Financial Coaching Standards and Code of Conduct further illustrate that:

A financial coach provides guidance on personal financial matters, not advice.

Advice

Providing specific recommendations for specific action to be taken. Advice is an opinion or recommendation offered to direct action or conduct.

Guidance

Sharing expertise and directing clients toward resources and education that can help them make decisions based on their personal goals. Guidance is the act or process of pointing clients through education, research, reflection, and other ways to help them make their own decisions.

Financial Guidance Research

Federal Trade Commission (2002). How to Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Billey Act. Washington, DC: FTC. https://www.ftc.gov

Financial Industry Regulatory Authority (2011). FINRA Rules, Books and Records Requirements. Washington, DC. http://finra.complinet.com

National Financial Educators Council (2020) Financial Guidance