CFEE Guidebook

24 BUILDING FINANCIAL CAPABILITY THROUGH FINANCIAL COACHING reflecting honesty; and respecting a student’s culture and background. The first coaching session is critical in setting the tone for the subsequent relationship. The coach must accomplish a number of things, including making the student feel at ease, building rapport, listening to their story, gath- ering details about their finances, and leading them to identify their financial goals. After each session, some coaches like to follow up with an email summarizing the issues or topics discussed, along with reminders about things to work on for the next meeting. Another important element of the coaching relationship is to help students realize that they need to be accountable for their behavior, but also that they have the power to change. Coaches need to be able to have an honest conversation, when appropriate, to point out things that the student may be aware of but may not want to admit. For example, it may take several months for a participant to admit to some behaviors or to divulge the true nature of the expenses that are affecting their budget. One of our coaches worked with a student for several sessions, but could never get the numbers in the budget to add up. The student had a good job but was continually in the red. Only after several months did the student disclose that the problem was the purchase of lottery tickets on a weekly basis. The coach then was able to help the student calculate the cost of this behavior over the course of a year. It was a big wake-up call. The student eventually took steps to phase out this habit because it was draining too much income. One of the most valuable things that a coach can do is to help a participant have these moments of realization, where they understand how much their behav- ior is affecting their finances over the long term. But it can only be done within the context of a trusting relationship. Structure Coaching around the Needs of Students Students who sign up for financial coaching typically do so for several reasons. Some recognize that their financial management skills need improvement and they see coaching as a way to increase their financial expertise. Others are motivated by specific problems that they are struggling with, such as a large amount of debt, low credit score, recent loss of income or job, or a pending divorce. ANDRE Andre is committed to completing a degree in business management. To accomplish this, however, Andre juggles his academic work with the responsibility of a full-time job with Con Edison, where he has worked for more than ten years. As a supervisor in electric construction, he spends his days working on projects throughout New York City. At the end of his long days, Andre drives to campus for courses in business and marketing. Andre was motivated to participate in the Money Smart Forum for many reasons. He says, “I had a large amount of debt when I first joined the program, and I really wanted to learn how to get my finances under control. One key thing I learned at the first meeting with my coach was the idea of paying yourself first.” Andre has been in the program for two years and has made remarkable progress. He is now debt-free and has accumulated substantial savings, which he will use toward another long-term goal of buying a house for his expanding family. Andre credits his coach with helping him develop a mindset of saving. “My coach encouraged me to take one step at a time, and that’s exactly what I did.”