4 Myths About Financial Coaches
- May 23, 2023
- 4 min read
Updated: May 25, 2023
Written by: Christine Luken, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
When I became a financial coach in 2008, there weren’t too many of us out there. My biggest task back then was educating people about financial coaches and how we can help. Now, when I Google “financial coach,” almost one million results come up. Strangely enough, when I plug “financial coach” into Dictionary.com, it says, “No results found.” So, it’s no surprise to me that you might believe these four common myths about financial coaches.
Myth 1: Financial Coaches Only Work With People Who Are In Deep Financial Trouble.
I can see why you might fall for this one. It makes sense that someone who’s in deep doo-doo with their money would need the help of a financial coach. There are some coaches who strictly work with folks who are in financial crisis, and that’s their specialty. But that’s not the only time you might choose to hire a financial coach.
Many of the high-income professionals who hire me as their Financial Dignity® Coach are not drowning financially or on the edge of bankruptcy. Usually, they feel like they’re treading water with their money. My clients earn an excellent income, but they’re not growing their net worth at the same pace as their income. These people want to take their financial situation from okay to awesome!
When a major life change is on the horizon, you can benefit from the wisdom and guidance of a financial coach. If you’re getting married, divorced, having a baby, or getting ready to retire, your personal finances will be affected. By being proactive, you’ll be able to make adjustments before the event happens and be ready for it financially.
Myth 2: Financial Coaches Only Help With Budgeting, Saving, And Debt Reduction
Yes, financial coaches are stellar at assisting their clients with issues around spending, saving, and debt. But that’s only a small portion of what we bring to the table. I know coaches who help with credit repair, couples’ conflict resolution, recovery from bankruptcy, and small business coaching. I work with my clients on managing the emotional side of money, navigating divorce and widowhood, major purchase decisions, handling sudden windfalls, evaluating their employee benefits, and managing finances with blended families.
Depending on each coach’s background, training, and experience, you’re going to receive coaching on a lot more than just budgeting, saving, and debt reduction.
Myth 3: Financial Coaches Don’t Let You Have Fun.
I think this is the myth that prevents people from engaging with a financial coach in the first place. They see us as the personal trainer who follows them around and slaps the junk food out of their hands. Let me put your mind at rest as I bust this myth. Most financial coaches build room for fun into your financial improvement plan (unless you’re flirting with bankruptcy).
When I create a Prosperity Plan for my clients, I ensure that it contains a healthy balance of goal achievement and playful enjoyment. If your plan has no room for fun, you’re probably going to ditch it after a few weeks. People are surprised when I tell them that all of my clients go on vacation while working with me! I know that we can make tangible progress in our personal finances while enjoying the journey.
So, if you interview a drill sergeant financial coach with a “no fun” policy, you might want to keep on looking!
Myth 4: All Financial Coaches Are The Same.
Financial coaches are like snowflakes: no two are alike! We have a wide spectrum of education and experience. Since the financial coaching industry is not regulated, you’ll need to do your homework on potential coaches before you hire one. What educational or work experience does the financial coach have? Did they go through a certification process? How many years have they been coaching people like you?
Before becoming a Certified Financial Counselor, I got my degree in accounting and worked as a business accountant for 15 years. I’m also a Certified Divorce Specialist® who receives ongoing training through the National Association of Divorce Professionals.
Many financial coaches have a particular client they prefer to serve. I know coaches who work with single moms, small business owners, military families, and LGBTQ+ couples. Personally, I work with high-income professional couples or divorcing women who are exiting high net-worth marriages. And I actually love it when my clients’ situations are financially or emotionally complicated. It’s where I thrive.
Because all financial coaches are not the same, we’re frequently not in competition with each other. Unlike other industries, I experience a great deal of collaboration and referral passing with other financial coaches. If I meet with a potential client who isn’t a good fit for my Financial Dignity® Coaching, I have a whole network of coaches to whom I can refer the person so they can get the help they need.
I just busted the top four myths about financial coaches you might have believed. Which one surprised you the most?
Want to work with a financial coach to take your money from okay to amazing? Find out how Financial Dignity® Coaching can get you to a place of lasting peace and positivity with your money.
Christine Luken, Executive Contributor Brainz Magazine
Ready for money to support your happiness, rather than stress you out? Then you need Christine Luken, Financial Dignity® Coach in your corner! As the Founder of the Financial Dignity® Movement, Christine has coached hundreds of high-earning professionals, business owners, and divorcing women to pay off staggering amounts of debt and massively increase their net worth. The author of several books, including Money is Emotional and Financial Dignity® After Divorce, Christine blends wise money management with emotional intelligence.
