financial coach

Do You Need a Financial Coach or a Financial Counsellor?

It’s not disputed – we all need more financial education. I believe to my core that it should start at school and although we can all tap to pay, all children should be taught from a very young age how to manage their money, how to plan and how to stay within their financial limits.

I’m all for investing and risk based decisions but they have to start somewhere and these financial foundations and beliefs have to be built on a solid base.

I was contacted recently by a young man for Financial Coaching, and although I am at capacity he wanted to be considered and potentially join my waiting list.

We spent a very enjoyable 45 minutes getting under the skin of his challenges and the upshot was I referred him onto someone else.

Here’s why…

He’s got a great job on a  graduate  scheme and was one of the big four in London. He was earning about £35,000 pounds a year, has no debt and is seeking help.

He has a good career path, and his next promotion would be about £60,000 pounds in about two years time.

He lives at home with his mum – so no significant outgoings like rent or a mortgage payment.

He interestingly claims that COVID saved his life. Because, in the year before the global pandemic he visited Las Vegas, four times in one year to gamble.

Now he says he doesn’t have a gambling problem and there’s no need to attend  Gamblers Anonymous as he’s fixed this problem.

He has successfully blocked his ability to gamble in the UK by registering with  GAMSTOP which will block you from online logging into or setting up gambling accounts with businesses licensed in Great Britain if you are a UK resident. It is a free service, and you can register for 6 months, 1 year or 5 years.

So he’s half way there right?

Wrong! Because he has now swapped his gambling habit, and is now  trading cryptocurrency and Forex Trading. 

The good news is he is not in debt.

The bad news is he lost £30,000 in one month and is absolutely insistent he does not have a problem. The denial of the problem is the real problem. 

He came to me for financial coaching.

The red flag was his total denial that he had swapped his gambling for financial trading. 

I gently advised him that he didn’t need to work with me, he needed to work with a Financial Counsellor.

So what’s the difference between Financial Coaching and Financial Counselling?

A simplistic definition is here and sourced from Money Habitudes

Financial Counseling helps identify issues and establish rapport. It helps the individual take ownership and decreases focus on prescriptive solutions to some degree. It also helps engage with partners to start a non-threatening dialogue.

Whereas Financial Coaching seeks to understand clients’ financial habits, attitudes, values, behaviors and emotional triggers, and allows clients to pinpoint their own strengths and challenges and identify changes they want to make; goal-setting. 

It is typically used one-on-one or with couples and not suitable for groups.

The Upshot?

I’m not afraid to call it out and know when I’m not the right fit for a client.

I’m all about providing straight talking and practical help and it’s not in this instance. This was not about coaching, practical solutions or money mindset solutions.  This was unfortunately about addiction, and I am not qualified to help. 

So I referred the young man to a colleague who I trained with who has a huge network of financial counsellors and a wide support network who can help him.

I strongly believe that people need clarity and confidence to take control of their finances and live the lives they deserve – only sometimes they need a little help along the way! We all lead busy lives and often some support and guidance can help us take back control and get refocused.

What To Do Next…

I help you master your money and live the life you deserve, by empowering you to get clarity, be confident and take control over your finances

If you need help, and want to talk to a qualified Financial Coaching who importantly won’t judge you please don’t put it off – get in touch by calling me on 07969 859749 or email chat@rachelrowley.co.uk and let’s see how I can help you!