In last week’s post, we explored if we needed to wear different hats when coaching and/ or giving advice. This week we will ponder on the question of ‘What is coaching?’ and then look at some definitions concerning financial Coaching in particular. I think it is an essential distinction for us to explore as the term coaching and, more so in our context Financial Coaching is used broadly. These definitions will also guide us to better questions such as ‘Is there a shared understanding of what our clients can expect from a Financial Coaching engagement?’ or ‘What we will offer our clients as financial coaches?’
WHAT IS COACHING?
Doing a literature review on the definition, I soon ended up with three pages of definitions of Coaching. The following represent some of the core themes from the study:
In the broader context coaching is referred to as a process of change, self-reflection, personal satisfaction, the fulfilling of full potential, enhancing effectiveness, achievement of goals, improving performance, self-awareness, social awareness, meaning-making on a personal and social level by telling stories (Askew & Carnell, 2011; Stelter, 2007; Stout Rostron, 2012).
James Flaherty (2010) argues it helps that we start by defining what our intention is with our Coaching:
The intended outcomes of Coaching are to achieve “long-term excellence, the competence to self-correct, and the competence to self-generate” (p.11).
My good friend, coach, and mentor Michell Clark, from MotivCoach, posted the following reflection on her Instagram some time ago. The post also offered a great distinction on some of the other modalities we can use to support clients to address their concerns and breakdowns:
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“Over the past 4 years, I have had the privilege of playing the role of Head Tutor for coaching students on our 13-week online course.⠀⠀⠀⠀⠀⠀⠀⠀⠀
When the students write their first introduction note they say “I have been coaching for many years and I am here to formalize it”.⠀⠀⠀⠀⠀⠀⠀⠀⠀
About halfway through the course, they write “I THOUGHT I was coaching but I was not!”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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If you are teaching your clients stuff, you’re teaching, not coaching. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you are offering your clients stories from your own life, you are mentoring, not coaching. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you are solving the challenges your client has by offering advice, you’re advising and consulting, not coaching. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you are shooting the breeze with your clients, you’re chatting, not coaching. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you are setting the agenda for each meeting based on your own plans of how this should all go, you’re driving, not coaching. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Know your role as a coach! ⠀⠀⠀⠀⠀⠀⠀⠀⠀
You’re walking alongside your client in a partnership of equals. Your client is the expert and you are the expert coach. Use your tools of deep listening and powerful questioning to help your client to determine the direction, the resources, the networks, and the self-knowledge required to get to where they want to go. ⠀”
WHAT IS FINANCIAL COACHING?
Let’s now explore some of the definitions of financial Coaching:
Saundra Davis defines Financial Coaching as: “Financial Coaching works to narrow the gap between what people know and what they do; it illuminates—through thoughtful questioning—what gets in the way of meeting life goals.”
Association for Financial Counseling and Planning define Financial Coaching as, ‘Financial Coaching is a collaborative, client-centred process that supports an individual’s financial progress and wellness using skills and techniques that facilitate lasting financial behaviour change.’
In the following video (2 Min), J Micheal Collins from the University of Wisconsin-Madison shares his thoughts on financial Coaching.
To beg, borrow and steal from the above leaders in the field of Coaching, I would say:
Financial Coaching intends to enable clients to achieve long-term prosperity by developing the competence to self-correct and self-generate. It is a collaborative process centred around the client’s agenda. The coach uses their tools of deep listening and powerful questioning to help their clients determine the direction, resources, relationships, and self-knowledge required to get them to where they want to go.
Resources:
Askew, S., & Carnell, E. (2011). Transformative Coaching. A learning theory for practice. Institute of Education.
Flaherty, J. (2010). Coaching: Evoking excellence in others (3rd ed.). Elsevier.
Stelter, R. (2007). Coaching: A process of personal and social meaning making. International Coaching Psychology Review, 2(2), 191-201.
Stout-Rostron, S. (2012). Business coaching. Wisdom and practice (2nd ed.). Knowledge
