Is There a Real Need for Financial Coaches?
Have you ever wondered if financial coaching is a viable career? Can you actually make a living helping people with their finances? The answer is a resounding yes. Let’s look at the stats:
- 72% of Americans feel financial stress.
- 65% of adults find money a significant source of stress.
- 42% admit to financial struggles.
- 46% of women (and 38% of men) say money negatively impacts their mental health.
- A staggering 80% don’t have a financial plan or budget.
These figures don’t even account for those not in stress but who still have financial goals they’re unsure how to achieve.
Financial Coaches: More Than Crisis Managers
It’s a common misconception that financial coaches only help those in crisis. While financial coaches do assist in those situations, our role extends far beyond. We’re here for anyone looking to do more with their money, not just those on the brink of financial collapse.
The Role of Financial Advisors vs. Financial Coaches
With over 200,000 financial advisors in the US, it’s clear that people seek financial guidance. However, advisors often focus on investments and savings, whereas financial coaches delve into the everyday management of money. Both roles are crucial, but they serve different purposes.
The Stigma Around Money
There’s often a stigma associated with money, where struggles are seen as a character flaw rather than a skill to be learned. This misconception can prevent people from seeking the help they need. Financial coaching aims to change this narrative.
Financial Struggle: A Broader Definition
Struggling financially doesn’t always mean being in debt or crisis. It can also mean not using money as a tool to enhance your life or making decisions for immediate gratification rather than long-term benefit.
Will People Pay for Financial Coaching?
Yes, they will. While it may seem counterintuitive to pay for financial help, people are willing to invest in solutions that enhance their chances of success in achieving their goals. Unlike free resources, personalized coaching offers accountability and tailored guidance.
The Irony of Financial Coaching
Acknowledging the irony of our profession is important. Yes, we charge for our services, but the value we provide goes beyond money management. We’re coaching the whole person, not just their wallet.
The Need for Financial Coaches
Financial coaching is a relatively new field, and part of our job is to educate potential clients about our role. While the need for financial coaches is significant, we must actively create demand by spreading awareness of what we do.
A Call for More Financial Coaches
In the end, the need for financial coaches is urgent. We need more individuals ready to dive into the intricacies of how people think about, manage, and feel about money. We need to raise awareness and educate potential clients about the transformative power of financial coaching. We might not see a saturation of financial coaches in our lifetime, but that won’t stop us from striving to fill this crucial gap.
That’s why I created the Financial Coach Academy®, to help more coaches help more people. You can get started now by downloading The Financial Coaching Playbook!