
Financial Education vs Financial Coaching
Aug 5, 2024
4 min read
2
22
0
There is a difference between financial education and financial coaching. Let's talk about how financial education and coaching can empower you to manage your money effectively.

Financial education centers around learning finance basics, such as budgeting, saving, investing, and financial products and services. You can learn how to create a budget, about debt payoff strategies, ways to save money, or how credit cards work.
You can learn anything you want about money: observing spending behaviors of your parents and other family members, school, a job, from a coworker, or online. Not only that, but it is taught many different ways by many different people. Elementary students today don’t even learn math the same way I did.
My point is that educational resources are everywhere when it comes to money.
So, if there is endless information to learn about money, why do we struggle so much with it? I’ll come back to this a little later.
Financial coaching takes a broader view, considering the financial situation and the individual's mindset, behaviors, and beliefs about money. It focuses on how to apply a financial concept to your specific situation. Once you have a plan on how to apply it, you commit to implementing it.
It's not about telling someone what to do or shaming them into a decision. It's about collaboration. Yes, information about how to apply financial concepts does exist. However, it doesn’t consider a person’s experiences, job or family situation, beliefs, etc.
Have you ever heard someone modifying a recipe due to a dietary restriction? It is similar to your money; you just aren’t sure what to change for it to work for you.
Let me give you an example of knowing how something works but not (and you can replace the credit card example with anything you want, like adding money to your savings, cutting back on excess spending, sticking to a budget, etc.).
You know that you will have to pay an interest charge if you use your credit card and do not pay off the balance when it is due.
Throughout the month, you make purchases with either your debit or credit card.
You get your credit card statement, and the balance is higher than expected.
You will not get your next paycheck until after the payment is due.
You decide to pay what you can towards the balance; the remaining balance will have an interest charge.
So, how did this happen and how do I feel about it?
I’ll now return to my earlier question. If there is endless information to learn about money, why do we struggle so much with it?
Here are examples of some reasons why:
You had an unexpected car repair, which you had to put on the credit card, making the balance too high to pay off with extra money from one paycheck.
You didn’t track your spending, so you didn’t know how much was going out.
You’ve always lived paycheck-to-paycheck, so this is normal for you.
You’re shocked and still not sure how this happened.
These types of things will not happen when you make more money.
You forgot about the quarterly waste, recycling, and pest control payments that all came due, and now you are short on funds to pay off the balance.
My point is that people have many reasons because every person has a different experience with money, which drives their behaviors, habits, and beliefs about money.
In financial coaching, we will peel back the layers and understand what caused it.
Did you make less money that month?
Did you have some unexpected expenses or just really overdo on your spending?
Did you put money in savings?
Once we understand the cause, we can work together to brainstorm options.
I hope knowing there is a way to make a method work for you gives you hope that things can be different. You can find a way to make managing your money work for you.
I don’t want to make this sound easy. You will have to put in the work, and there may be times when you want to give up. It takes time to break habits and create new ones. Find what works for you and stick with it. If it’s not working or stops working, change it up.
You don’t go to the gym one time or even five times and expect to get results. You have to consistently work at it.
How will it feel when that consistency pays off and you wake up in the morning and know where you stand financially?
You know the bills are being paid and how your cash is flowing until the next pay period.
You know the dollar threshold you have set where you can buy something for the business, yourself, family, or friends without having to take time to make a decision ($50 vs. $250 vs. $500).
You know how long it will take to save for a dream vacation.
You know enough revenue is coming in to cover all business expenses, including your paycheck.
As a money coach, I am here to help you get through the hard parts faster. Can you get there on your own? Sure, with a lot of time and effort, and as a small business owner, who has time for that?!?!
But seriously, your money is really important, so here is your reflection question.
Think of something you have been trying to do regarding your finances that is not working.
What step or part doesn’t work for you or feels difficult?
Once you know this, think of other ways to do the hard part to make it work.
Here’s an example: The process is paying your bills for your personal and business finances. You struggle with paying them on time, resulting in late fees and interest charges. Some options you can explore to help you pay them on time may include:
Set a day and time each week for paying bills due the following week.
Set up auto-pay.
Set reminders or block time in your calendar.
Have another person/agency responsible for paying the bills.
Hire an assistant.
Use a financial app.
Whatever else works for you.
There's always a solution or a different approach that can make managing your finances a little easier. Keep exploring and trying different methods until you find what works best for you.
Remember, it's okay to ask for help when you need it. With determination and the right support, you can make positive changes in your financial life. Good luck on your journey to financial well-being!
Jessica