Learn the Five Phases in How to Become a Certified Financial Coach
There are five critical steps in the process of how to become a certified financial coach. The resources here will guide you through that process. Here’s an illustration of how the steps can be put into practice in the real world.
Step 1: How to Become a Certified Financial Coach Starts with Training & Certification
As with any new venture, the first step is to get the necessary education. For example, Sandy Scott was a retired teacher with a lot of time on her hands. She wanted to learn how to become a certified financial coach like her friend Mary Brown, so she could occupy herself, earn a little extra income, and give back to her community.
Sandy realized that she needed more than just book learning about managing personal finances. Although she was already an effective teacher, she needed to learn more about financial psychology, industry regulations, and one-on-one coaching methods. She discovered in-depth coverage of these topics in a financial coach certification program.
When Sandy had successfully completed the certification coursework, she would demonstrate financial coaching competency and compliance with national standards, which would give potential clients confidence in her abilities.
Step 2: Initial Experience
While Sandy was pursuing her education she also sought to get some hands-on experience to become a financial coach, under appropriate supervision of course. Book learning is fine, but Sandy found out that how to become a certified financial coach would require her to translate book knowledge into action.
Sandy asked her friend Mary Brown if she might refer a few clients with whom she could practice her skills. Mary’s schedule was overloaded, so she was happy to oblige. As Sandy began working with clients, she soon found out that each of them was different – their emotional relationships with money, the habits they’d formed, and the financial realities they were experiencing. Although this aspect of coaching posed a challenge, Sandy practiced hard and improved her abilities over time.
Mary also agreed to supervise Sandy’s work while she was getting started. The financial certification coursework had taught Sandy that, until she completed her studies and became certified, it was best to have her work and recommendations to clients supervised.
Step 3: Systems, Processes, & Resources
The coursework, coaching experience, and documentation of results helped Sandy build a solid foundation for how to become a certified financial coach and start a financial coaching business. Now she was well-advised to put systems and resources into play to help her streamline the client coaching process.
Sandy sought to establish a client relationship and timely communication management system, and find a platform to organize all her clients’ financial records in one place. The information she needed to manage would include client bank accounts, insurance, credit histories, and retirement plans.
Sandy located software and resources that enabled these systems, which also allowed her to give clients physical financial plans with clear direction. She used the same software to produce progress reports, so clients could track their accomplishments.
Step 4: Plan & Path – Work for Organization / Start a Business
Sandy was close to completing her financial coach certification course, and her next step was to consider how she wanted to coach. The options included working for someone else or starting her own business. Sandy decided the latter choice would be best for her, because she wanted to set her own hours and manage her own clients.
Identifying her path forward helped Sandy prepare. Like all qualified financial coaches, she had been documenting her clients’ results, and now she started writing case studies based on client successes (being sure to meet confidentiality guidelines and protect their privacy).
The case studies demonstrated to the world that Sandy was a distinguished coach. This information would help her attract potential clients and become recognized in her community as an accomplished provider.
Step 5: Commitment to Excellent Service & Results
As Mrs. Scott completed the process for how to become a certified financial coach, she undertook responsibility to help clients achieve their personal finance goals. It was up to her to help them maintain focus after setbacks, and encourage them during positive times.
Sandy was unable to help all her clients in equal measure. Although failure felt frustrating, when she did help someone reach a goal, all her efforts seemed worthwhile. Some clients would move from horrible financial struggles to being on track toward secure futures. At those times, Sandy felt deeply satisfied.
When Sandy helped a client reach a goal, she enjoyed that positive feeling providing financial coaching services, and then put it to use as motivation to continue improving her skills. She made a firm commitment to each client’s financial wellbeing.