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!
FAQs
In today's fast-paced and ever-evolving world, where financial well-being holds significant importance, the demand for skilled financial coaches is skyrocketing. In this comprehensive article, we will delve into the world of financial coaching and explore the top financial coach certifications of 2024.
Can you make good money as a financial coach? ›
The average financial coach salary in America is $47,895 annually. But listen—we've been training financial coaches for more than 30 years, and we know coaches who make between $200,000 and $400,000 a year. (Yes, really!) That's because they've hustled and really built up their practice.
Is financial coaching worth it? ›
A coach can help you unearth what drives your financial decisions, so you can create a healthier attitude that leads to better money habits. Feeling overwhelmed? If thinking about money is stressful, it may help to talk with a financial therapist.
How to get financial coaching clients? ›
There are many ways to get the right coaching clients as a financial coach, starting with narrowing your audience and understanding your target market. Next, you'll build your brand, show your authority compared to other industry professionals, and narrow your content strategy to find the ideal clients.
How much does Dave Ramsey charge to become a financial coach? ›
Dave Ramsey's Master Training program currently costs $2,295, which includes training materials, live lectures, and a certificate of completion.
Which type of coach makes the most money? ›
One key consideration is its demand. Coaching sectors such as executive coaching, leadership development, and career coaching are known to attract high-paying clients who are willing to invest in their personal and professional growth.
Is there a demand for financial coaches? ›
The demand for financial coaches continues to grow as individuals and businesses recognize the value of professional guidance in achieving their financial goals. Plus, according to Practice's State of Coaching Report for 2023, coaches with certifications charge 3x more than those without.
How much should I charge as a financial coach? ›
Financial coaches don't manage your money or investments, so they don't charge a fee based on assets under management (AUM) the way some financial advisors do. Rates for financial coaches can vary, but hourly rates of $100 to $300 are fairly common.
What is the job outlook for a financial coach? ›
Financial Advisor Employment Expansion
The Bureau of Labor Statistics has projected that 42,000 new financial advisor jobs would be added between 2022 and 2032. That will increase the total number of positions 13% over the decade from 227,600 in 2022 to 369,600 in 2032.
What can a financial coach do and not do? ›
Provide skills and tools: Financial coaches offer clients the resources to achieve long-term goals by providing them with the financial literacy tools they need. While coaches don't advise their clients on finances, they can explain how to set and reach attainable goals.
Financial advisors manage money for clients, often in the form of managed investment portfolios. Financial planners provide comprehensive money management services, including advice on saving, investing, and taxes. Financial coaches are money experts that provide reliable advice to help you manage your own finances.
Why do coaches get paid so much? ›
Bringing in good results also generates higher revenue for colleges as they are getting more and more viewers. It is fair to say that college football coaches do deserve what they are paid for, as they consistently make a positive impact and attract many viewers from across the nation to watch their team play.
Can anyone be a financial coach? ›
You don't need a degree in finance or business. All you need is good financial sense and a passion to help people. I left corporate America and began my financial coaching business more than 10 years ago. I started by helping my friends, my family, and eventually some friends of friends, gain financial freedom.
How many clients does a financial coach have? ›
A good average number of clients per financial advisor to have is usually in the range of 50 to 150. But you may need fewer than that if you're primarily targeting high-net-worth individuals. Finding your ideal number of clients can depend largely on your goals as an advisor.
What makes a good financial coach? ›
"The most successful financial advisors are generally less concerned with gathering assets and selling products, but instead focus on their client's needs and goals," Leonard said. She says successful advisors take a client-first approach.
Can you make good money as a coach? ›
Life coaches who specialize in business coaching can make a lot of money. This would require analyzing and providing expertise, normally in a corporate environment. Business coaches charge either per hour or long-term, and they are the top earners in the niche.
What can't a financial coach do? ›
Another important difference is that financial coaches are not licensed to provide financial advice like advisors are. Therefore they cannot provide specific product recommendations. Coaches can provide basic advice on the concept of investing, but they cannot recommend how to allocate your assets.
Can you make a living off coaching? ›
Most people in coaching make their living by having a private practice. Some people starting a private practice begin generating a living in as little as 3 weeks after their training while others take some time to build a practice while also working their full-time job.
