Financial Coaching Can Benefit Consumers

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The CFPB recently released two briefs about financial coaching and how it can benefit consumers.

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At some point in their financial lives, many consumers need more than access to information — they may also need someone to help them to identify and achieve their financial goals. A financial coach can serve as a capable and trusted guide to help consumers navigate those decisions.

What the CFPB research found

This study, based on research we commissioned from the Urban Institute, found that financial coaching can help increase financial well-being. The study was the first of its kind to evaluate the impact of financial coaching. It found that access to financial coaching resulted in measurable gains in three areas: money management; objective financial health metrics like savings, debt levels, and credit score; and subjective feelings of financial confidence and financial well-being.

The results of this study demonstrate that financial education – in the form of financial coaching – can make a meaningful difference in people’s financial behavior, attitudes, and situation.  Financial coaching works particularly well for people who are motivated to take action to improve their financial situation but may need help formulating and sticking to a plan on their own.

Check out our new research brief to learn more about how financial coaching programs benefitted consumers.

Implementing coaching in your program

This research also provided insight into how to implement financial coaching.  Coaching is a flexible approach that can work for many types of people and in many program settings.

Financial educators who are interested in learning more about implementing coaching programs can read our companion brief for practitioners.

This article by was distributed by the Personal Finance Syndication Network.

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