CFEE Guidebook

27 BUILDING FINANCIAL CAPABILITY THROUGH FINANCIAL COACHING Certification Programs The Association for Financial Counseling and Planning Education (AFCPE) (www.afcpe.org/ certification-and-training/coaching-essentials) offers several different coaching and counseling certification programs that provide an added level of professionalism for coaches, if desired. Certifications offered by the AFCPE include Accredited Financial Counselor (AFC) and Financial Fitness Coach (FFC). The AFCPE’s training programs are offered for a fee and can be completed as part of a total curriculum or individual modules. The National Commission for Certifying Agencies (NCCA) has accredited both of these programs, indicating that they comply with the rigorous standards of the certification agency. Volunteer Coaching Some programs can be organized using coaches who volunteer from the community or from fi- nancial organizations. One such organization is the Financial Planning Association (FPA) (www. letsmakeaplan.org) , which is a membership or- ganization for financial planning professionals. The FPA has local chapters across the country, and their membership includes people with the Certified Financial Planner credential. Many FPA chapters have a pro bono coaching initia- tive, where members seek to work within the community. Many FPA members are open to collaborating with community colleges to make coaching available for specific events or in connection with an ongoing program. Because CFP professionals have already had extensive training and have met rigorous professional standards, they are well-qualified partners for financial coaching. Set Measurable and Achievable Financial Goals for Participants Each student seeking financial coaching has a unique set of economic circumstances. For some participants, their primary financial goal is finding a job or a higher-paying job; for some it’s starting a savings program; and for others it’s establishing credit or repairing credit. Start with a Budget The first step in creating financial goals is to have the student complete a budget, because all of the financial goals flow from the budget or spending plan. Setting measurable and achiev- able goals involves identifying what amount is achievable based on the budget, and then putting action steps in place to achieve the goal within a specified time frame. Adding to the challenge of setting and meet- ing goals is the fact that that there is a limited amount of time available to work with a student over the course of a semester. Because we want every student to develop habits around saving money, the savings goal is typically the first one to work on. However, identifying a realistic savings goal is easier said than done, because most students have no idea how much they are spending or how much they could potentially be saving. Track Expenses A critical aspect of goal setting is to have students track their expenses for several weeks or more, so they become aware of their spend- ing habits. Students can use whatever tracking system works for them—including using an app on their mobile phone or in a notebook. The important thing is that they use a method that yields accurate spending totals. Next, the coach will work with the student to complete a monthly budget that includes I now have the discipline to stick to my spending plan. Money Smart Forum student