Using Narrative Theory in Financial Coaching

In 1978 Russian psychologist, Lev Vygotsky started working with Narrative Therapy in the form of Scaffolding. As a financial coach, I find the term very descriptive.

Scaffolding is a method widely used in teaching to determine the skills that a student has, and which skills need further development. From there on, they place focus on building these required skills and competencies through layers. I guess you could say, taking it step by step, literally.

In the same way, we sometimes use scaffolding or narrative coaching to explore and determine a challenge that a client may experience and then help them build competency to overcome them while empowering them to continue their financial responsibilities with ease.

In 2011, a research paper published by the University of Western Sydney investigated how to use scaffolding to support students to learn and integrate the complex concepts of financial planning, but we will explore how we can apply scaffolding in supporting clients in their zone of proximal development (where their current knowledge and experience, or need to be expanded to deal with the task or issue at hand), in this article.

What is Narrative Theory

In the early 1980s, Michael White and David Epston brought the concept of narrative practice to mainstream society as what we now know as narrative coaching through the development of narrative maps that gave practitioners a specific structure that made the process visual.

After attending a series of workshops about re-authoring the world, some years back, which were hosted by Chené Swart, our own South-African Narrative Guru, I have found a new appreciation and viewpoint through Narrative theory, for reasons such as;

We construct reality.
Reality is both influenced by and communicated through language.
Knowing narratives help us organise and maintain reality.
Critical thinking: Does absolute truth exist?
The process of non-blaming.
Externalising the challenge (the problem is the problem and not the client).
Respecting the client as a unique human being.
That the client is the expert of their own life.

Can Narrative Theory fit into the Ontological Coaching Framework

Writing an article on Narrative Theory or Narrative Coaching would not be complete if I didn’t explore how it could fit into an Ontological Coaching Framework. At the core, we are human beings that live in stories or narratives. We either form these stories or re-tell them through the conversations we have.

It forms our conversations through our listening, speaking and the mood and energy we use to craft these narratives. By creating these through talking, writing and thinking, these stories are generally about us (self-talk.)

Looking at language, they form our stories on assessments we make that are based on our values, beliefs, and judgements. Our stories are influenced by the assertions formed by our culture, communities, and systems we grew up and lived in.

Allan Sieler summarises it as:

“… Assessments that influence our stories [which] are formed based on past experience[s] made in the present, and [will] inform how we will view the future or how we will take action in the future.”

Reflecting on the words of Walter Anderson,

“We repeatedly create symbolic systems of meaning-religion, political ideologies, scientific theories – and forget they are our own creations.”

I cannot help but think time and money were both concepts and stories that we as humans created therefore, how we frame our stories around these will either leave us with a mindset of abundance or scarcity.

My way of being as a Financial Coach

As a financial coach, we can use the narrative approach by listening to our client’s stories while picking up parts we are curious to explore, irrespective if these stories are positively serving them or not. The other possibility is where clients come to us and present something that is a challenge for them.

In both cases, it is essential that we do not act by judging, relating, or applauding their challenge. We are also not the expert to assume or fix, as a financial coach, we can walk alongside the client while they explore and re-author their story.

Our own way of being critical and applying the narrative theory correctly is to ensure that we are present, to stay and observe the client’s story, while taking part in deep listening while asking significant questions to enable the client to re-author their story.

Creating or building a new narrative

Below, there is a template you can use to facilitate the flow of the process. The framework was adapted using concepts from Chené Swart, David White and Bill Madsen’s work.

As a financial coach, when the client presents a challenge, or we are curios to explore something a client shared, we always need to ask permission to explore the story as we are curious to understand how the story support or handicap the client. We will explore how we can use one of the two mainstream techniques to facilitate the process.

Firstly, you can work with the client’s story and facilitate a process where they will re-write their story to find new ways and meaning.

The second method is to externalise the story, this could be very powerful depending on the context of the challenge. Using this method, you can ask the client to view the challenge as a third person in the room, helping the client to talk about the problem, separate from their own identity. This will allow the client to separate their emotional bias from the current challenge.

Step 1: Exploring the current Narrative

Questions, unpacking the Narrative as a story	Questions, externalising the story
How did the narrative show up in the recent past?	In which of the past experiences was the narrative (person) present?
What evidence do you have of the narrative?	What evidence is there that the narrative shows up?
What is the narrative doing?	What would you say is the narrative doing?
What emotion is the narrative causing in your life?	What is the narrative causing in people’s lives?
How does the narrative impact your life?	How does the narrative impact people’s lives?
What are the assessments that influence and form the narrative?	Suppose you listen to the stories of the narrative. What are the assessments that influence and form the narrative?
How do these assessments influence the narrative?	How do these assessments influence the narrative?
Who gives authorisation for the narrative in your life?	Who do you think gives authorisation to the narrative, to life and to influence people’s lives?
How does the narrative influence your relationship with: · Yourself · Your body · On a Spiritual level · Your work, and · Relationship with others.	How does the narrative influence people’s relationship with: · Themselves · Their bodies · Spirituality · Their work, and · Relationship with others.
When is the narrative at its strongest and weakest in your life?	When is the narrative at its strongest and weakest in the lives of people?
How do you “side-step” / avoid the narrative?	How do people “side-step” / avoid the narrative?
Was there a time in your life that the narrative was not present?	Was there a time in people’s lives where the narrative was not present? Is the narrative present in all people’s lives?
1. Assessments are also sometimes referred to as “taken for granted beliefs”. These are the “truths” we live by, that we no longer question. These could be our own or others’ assessments of things, judgements, values or even assertions that are driven by culture, community or norms that become part of our discourse.

Step 2: Naming the current Narrative

Observing the narrative from an outside objective, one could label the narrative. This again helps us separate the challenge from the client. What would you name your narrative/challenge?

Step 3: Deciding to explore a new narrative

Questions, unpacking the Narrative as a story	Questions, externalising the story
How does the Narrative serve you?	How does the Narrative serve people?
How does the Narrative run your life?	How does the Narrative run people’s lives?
If you can, would you like to write a new story to live by?
What relationship will you have with the old narrative?

Step 4: Ritual to Say Good-Bye to the old Narrative

What method or routine will be worthy to say goodbye to and thank the old narrative?

Step 5: Envision the new Narrative

What would you want from the new narrative?
What experiences of your past can you draw from to support the new narrative?
What assessments (beliefs, values, assertions and ideas) support the new narrative?
What mood best supports the new narrative?
Who will you allow to speak to the new narrative?

Step 6: Explore the new narrative in the context of relationships

Who will be influenced by the new narrative?
How will they be influenced?
Who will you ask to support you with the new Narrative and how?

Step 7: Explore possible challenges within your new narrative

What potential challenges might stand in your way?
How will you mitigate or deal with these challenges?

Step 8: Acting

What will you need to do to live the new narrative?

Step 9: Envision the benefits of the new narrative

What difference will the new narrative make in your life?
What routine would you like to have to integrate the new narrative into your life?
What routine will you have regularly to remind you of the new narrative and to be grateful for the new narrative?

Step 10: Name the new narrative?

What will be the name of the new narrative?
What declaration are you making?

Step 11: Follow-up and commitment

What realizations did you experience during the process?
What support do you require from myself as your financial coach following your new narrative?
As a financial coach, you will enter a verbal agreement of accountability and recognition for an agreed future date.

Fellow Financial Coaches, would love to hear your views, questions of stories how you applied the framework?