Financial Coaching: What is it and how can it help?
The world of finance is ever changing. What you learned in school (if financial literacy was even taught) might not cover what you need to know in today’s economy or in your current situation.
Everybody’s financial story is different. It’s important to adjust your lifestyle and financial choices to reflect your needs. But sometimes it’s hard to know what to do.
Luckily, you’re not alone.
Financial health is a part of your mental health
Financial and mental health are often directly related. When someone is experiencing financial stress, their mental health will often be affected as well. Additionally, if an individual is struggling with their mental health, their finances can reflect that. So, it’s important to seek support when you are struggling with either of these things.
Often, people tend to get financial help and advice from family and friends. While that isn’t necessarily a bad thing, that advice might not work for your situation, as all situations are different.
The good news is there are experts available to provide financial guidance tailored to your unique situation.
Financial coaching is an opportunity to work with a certified professional to discuss your current financial situation and goals and learn what you can do to put yourself in the best place possible. In a financial coaching session, you’ll learn money management skills ranging from how to build your savings to creating a plan to pay off debt. The goal is to help you to develop healthy financial habits.
Managing your finances is an all-encompassing task that involves your emotions, behaviors, and habits. Working with a financial coach can help you determine what drives your financial decisions to help you improve your financial health.
Part of the credit union mission is to improve the financial well-being of all members. According to the Credit Union National Association, part of the credit union promise is “ensuring everyone has complete, affordable access to financial services.”
This includes making sure that members have a variety of tools, services, and information easily accessible to them so they can achieve their financial goals.
At CAFCU, we offer financial 1-on-1 sessions with a Certified Credit Union Financial Counselor (CCUFC). A CCUFC is a certified professional prepared to work with members in need of financial help and educate them on what steps they can take to reach their financial goals. These 15-minute sessions are free to anyone as a way to make quality financial wellness education accessible to all.
In a 15-minute financial coaching session with one of CAFCU’s CCUFC’s, you will learn a variety of things, including things like:
- how to better understand your credit score and credit report
- how to overcome identity theft and fraud
- what loans and credit cards are right for you
- tips for saving for the future and planning for emergencies.
You can book a session by visiting cafcu.org/answers and selecting “schedule my 1-on-1.”
Types of financial counseling
There are three basic forms of financial counseling. Some sessions can cover all three forms while others focus on one or two areas depending on a person's situation and what they need to focus on. These include:
Budget counseling: Budget counseling teaches you how to budget, how that impacts all other aspects of your financial life, and other important financial strategies to ensure that you are maximizing your savings.
Credit counseling: Credit counseling is an opportunity to learn about how to manage your debts, get a healthy credit score and maintain it, and create a plan for long-term debt relief.
Financial planning: Financial planning sessions focus on looking at your situation and determining what the best strategies would be to achieve your life and financial goals. Whether it be saving for retirement, financial planning for starting a family, or strategizing for buying a home.
In addition to financial coaching sessions, the expert you work with might direct you to supplemental resources to help you develop your financial health outside of the session. This can range from financial webinars to videos about financial wellness and even to financial management apps. Their job is to provide you with the knowledge and tools that you need to find success in your financial life.
Take control of your finances
Booking a financial coaching session is NOT a sign of weakness. In fact, it’s one of the most empowering things a person can do.
When you book a free financial coaching session with CAFCU, you are actively taking the first step to toward better control of your finances and working towards financial independence. Working with a certified individual can help you strengthen your money management skills to live your best life possible.