CFEE Guidebook

9 BUILDING FINANCIAL CAPABILITY THROUGH FINANCIAL COACHING of 37 points, which translates to more advanta- geous interest rates and better access to credit. Credit scores also have an influence on hiring decisions, in that employers often check a score as a prerequisite to making a job offer. We found that the more time participants were able to devote to the coaching program, the more profound their outcomes. For exam- ple, some of the students who worked with our coaches for a year or more were able to realize goals like saving for a down payment on a mortgage or building capital to start a business. These students will be better positioned to support their families, invest in their communi- ties, and move up the economic ladder. Supporting Career Development and Transition to the Workforce All community colleges are committed to providing students with relevant academic credentials and career readiness skills. Finan- cial coaching can play an important role in this process, in that students who are financially capable are also better able to plan for a career and navigate an increasingly complex world of work. It is important for students to learn how to connect their financial plans to their career goals, and vice versa. For example, students may aspire to a career in a specific field, but they will have no concept of the type of degree needed, the cost of the degree, or the level of salary that they might command once they graduate. Financial coaching can help students to connect the dots as they try to make decisions about the cost of completing a degree in a specific field of study and plan for their finances after they graduate. For many students, finding a job or a high- er-paying job is their top financial goal. Our coaching process includes helping students to undertake important career-related activities, such as doing career investigation, researching salaries, and completing a resumé. In every year of our coaching program, approximately 15-20% of participants were able to get new jobs or higher-paying jobs because of their efforts with their financial coach. The financial coaching process can also be aligned with the resources offered through a college’s career services office. It is important to make students aware that they cannot do career planning in a vacuum without also having a financial plan as a necessary component. PABLO Pablo emigrated from Ecuador to the US in 2015, hoping for an opportunity to further his education and build a future. With very few English skills, he enrolled in English as a Second Lan- guage classes at Westchester Community College, and in a few years progressed to the highest skill level. He joined the Money Smart Forum in 2018 because he had a goal of pursuing an engineering degree but needed to figure out how to pay for tuition and other expenses. Pablo is now in the process of realizing his ambition. In 2019, he matriculated as a full-time credit student pursuing an AS degree in engineering sci- ence. Ultimately, he hopes to transfer to a four-year college to complete a bachelor’s degree in engineering, leading to a career in the automobile industry. Pablo credits the Money Smart Forum for helping him to understand the basics of the financial system in this country. As Pablo says, “I learned that saving is not an amount, it is about lifestyle choices.” Through using a budget and tracking his expenses, he has been able to accumulate savings that will take him to the next step in his career plan.