financial coaching and financial therapy
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Financial Coaching
Georgia Consortium
February 26, 2015
Atlanta Financial Psychology Mary Gresham, Ph.D.
APA Stress In America
Atlanta Financial Psychology Mary Gresham, Ph.D.
In the last year
Atlanta Financial Psychology Mary Gresham, Ph.D.
The stress gap
Atlanta Financial Psychology Mary Gresham, Ph.D.
Stress management
Atlanta Financial Psychology Mary Gresham, Ph.D.
Women and Money Stress
Atlanta Financial Psychology Mary Gresham, Ph.D.
Stress response
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
• Debt counseling
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
• Debt counseling
• Self-help group
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
• Debt counseling
• Self-help group
• Financial literacy
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
• Debt counseling
• Self-help group
• Financial literacy
• Financial coaching
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Give money
• Debt counseling
• Self-help group
• Financial literacy
• Financial coaching
• Financial therapy
Financial interventions
Atlanta Financial Psychology Mary Gresham, Ph.D.
What is coaching?
Atlanta Financial Psychology Mary Gresham, Ph.D.
What Coaching Is Not
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
• Motivate
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
• Motivate
• Guide
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
• Motivate
• Guide
• Instruct
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
• Motivate
• Guide
• Instruct
• Discipline
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Lead
• Motivate
• Guide
• Instruct
• Discipline
• Mentor
Sports Coaches
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1980’s
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1980’s
• Evolved out of corporate
world
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1980’s
• Evolved out of corporate
world
• Help employees develop
skills, engagement
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1980’s
• Evolved out of corporate
world
• Help employees develop
skills, engagement
• Improve the business
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1990’s explosion
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1990’s explosion
• New fields of coaching (life,
wellness, relationship,
career, etc.)
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 1990’s explosion
• New fields of coaching (life,
wellness, relationship,
career, etc.)
• ICF developed certifications
History of coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Estimate 50,000 identify as
coaches worldwide
Current
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Estimate 50,000 identify as
coaches worldwide
• No certification required
Current
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Estimate 50,000 identify as
coaches worldwide
• No certification required
• Limited research base
Current
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Estimate 50,000 identify as
coaches worldwide
• No certification required
• Limited research base
• Flexible models, locations
Current
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Estimate 50,000 identify as
coaches worldwide
• No certification required
• Limited research base
• Flexible models, locations
• Low stigma
Current
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Client readiness
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• No research base
Private $ coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• No research base
• Expensive
Private $ coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• No research base
• Expensive
• Private market
Private $ coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• No research base
• Expensive
• Private market
• Buyer beware
Private $ coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
• Female, middle age,
educated, 80K mean income
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
• Female, middle age,
educated, 80K mean income
• Primary goal: Self confidence
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
• Female, middle age,
educated, 80K mean income
• Primary goal: Self confidence
• 3% financial goals
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
• Female, middle age,
educated, 80K mean income
• Primary goal: Self confidence
• 3% financial goals
• 27% financial benefit
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2009 study of 2100 clients
• Female, middle age,
educated, 80K mean income
• Primary goal: Self confidence
• 3% financial goals
• 27% financial benefit
• 96 % would do it again
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2010 use of “signature
strengths” predicted goal
progress in 240 college
students
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2013: Study of 18 studies in
organizations
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2013: Study of 18 studies in
organizations
• Coaching increased goal
attainment by 70%
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2013: Study of 18 studies in
organizations
• Coaching increased goal
attainment by 70%
• Coaching significantly
improved specific skills
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• 2013: Study of 18 studies in
organizations
• Coaching increased goal
attainment by 70%
• Coaching significantly
improved specific skills
• Moderate effect: work
attitude, well-being, coping
Effectiveness of private
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
Coaching Low Income
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Pilot studies:
• Central New Mexico
Community College
• Financial Clinic of NYC
• Center for Working Families
Effectiveness of financial
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Pilot studies:
• Central New Mexico
Community College
• Coaching helped students
adhere to a budget
Effectiveness of financial
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Financial Clinic of NYC
• Coaching clients significantly
more likely to have a goal
and feel confidence about
achieving it.
Effectiveness of financial
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Center for Working Families
• Coached more likely to pay
more than minimum
balance, save and pay bills
on time.
Effectiveness of financial
coaching
Atlanta Financial Psychology Mary Gresham, Ph.D.
• A. Financial services provider
• B. Only ICF certified coach
• C. Mental health professional
• D. Anyone
Who can be a financial coach?
Atlanta Financial Psychology Mary Gresham, Ph.D.
What is a financial coach?
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Beliefs and emotions block
behavior change
When coaching does not work?
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Beliefs and emotions block
behavior change
• Unmotivated/unready to
change
When coaching does not work?
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Beliefs and emotions block
behavior change
• Unmotivated/unready to
change
• Functional impairments
When coaching does not work?
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Beliefs and emotions block
behavior change
• Unmotivated/unready to
change
• Functional impairments
• Coach/client mismatch
When coaching does not work?
Atlanta Financial Psychology Mary Gresham, Ph.D.
Financial therapy is the study
of the cognitive, emotional,
behavioral, relational,
economic and integrative
aspects of financial health.
Financial Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
The Money Taboo
Atlanta Financial Psychology Atlanta Financial Psychology
Sigmund Freud
Money matters are
treated by civilized
people in the same
way as sexual
matters….with
inconsistency,
prudishness and
hypocrisy.
Atlanta Financial Psychology Atlanta Financial Psychology
“Remember a few years ago when everything was sex, sex, sex?”Atlanta Financial Psychology 77
The Problem with Financial
Literacy
Atlanta Financial Psychology Atlanta Financial Psychology
money
Atlanta Financial Psychology 79
Schemas
• Thoughts and behaviors we use to simplify the complex
Atlanta Financial Psychology Atlanta Financial Psychology
Schemas
• Thoughts and behaviors we use to simplify the complex
• Memories, feelings, decisions, core beliefs that are mostly unconscious
Atlanta Financial Psychology Atlanta Financial Psychology
Schemas
• Thoughts and behaviors we use to simplify the complex
• Memories, feelings, decisions, core beliefs that are mostly unconscious
• Efficient
Atlanta Financial Psychology Atlanta Financial Psychology
Schemas
• Thoughts and behaviors we use to simplify the complex
• Memories, feelings, decisions, core beliefs that are mostly unconscious
• Efficient
• Find confirmation for them
Atlanta Financial Psychology Atlanta Financial Psychology
Schemas
• Thoughts and behaviors we use to simplify the complex
• Memories, feelings, decisions, core beliefs that are mostly unconscious
• Efficient
• Find confirmation for them
• Developed in childhood when we do not have cognitive ability to process complicated constructs like money
Atlanta Financial Psychology Atlanta Financial Psychology
• Money Avoidant
• Money Centric
• Relationship
3 Types of money issues
Atlanta Financial Psychology Mary Gresham, Ph.D.
Common money avoidant
schemas
• Money is not important
• It’s not nice to talk about money
• Money is bad, dirty
• I don’t really need/deserve money
• I don’t like rich people and don’t want to be like them
• Money is the man’s job
• The universe will provide for me
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Denial of money’s function
• Guilt/shame about having
money
• Under earning
• Risk avoidance
• Task refusal
Money avoidant
Atlanta Financial Psychology Mary Gresham, Ph.D.
• More money will make things better
• I deserve to have money
• I deserve to spend for what I want
• Money gives my life meaning
• Net worth=self worth
• You can’t trust people when it comes to money
• Spending money is showing love and caring
• There’s can never be enough money
• Work hard and you will have money
Money centric schemas
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Workaholic
• Excessive risk taking
• Hoarding, miserly
• Compulsive
spending/shopping
• Neglect of relationships,
feelings
Money centric
Atlanta Financial Psychology Mary Gresham, Ph.D.
• If I give money then others will love and care for me in return.
• If I give my children what I never had, they will have a better life.
• If I can afford it, why not spoil them?
• You should always have a secret account
• It will just upset things if he/she knows how much I spent
• Don’t tell your mother/father how much things cost
• It’s not my job to look after the money.
• I don’t want to have to take care of myself
• I deserve to be supported
Relationship schemas
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Financial infidelity
• Financial incest
• Financial
dependency/regression
• Financial enabling
Relationship issues
Atlanta Financial Psychology Mary Gresham, Ph.D.
• A. Financial services provider
• B. Mental health professional
• C. Accredited financial
counselor
• D. Anyone
Who can be a financial
therapist?
Atlanta Financial Psychology Mary Gresham, Ph.D.
Financial Therapy Association
Atlanta Financial Psychology Mary Gresham, Ph.D.
Who can be a financial
therapist?
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Great potential to help
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Great potential to help
• Clients benefit from
individualized approach
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Great potential to help
• Clients benefit from
individualized approach
• Clients enjoy the
focus/attention
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• Great potential to help
• Clients benefit from
individualized approach
• Clients enjoy the
focus/attention
• Effective when other
interventions are not
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• New fields
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• New fields
• Lack of professional
definition and licensing
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• New fields
• Lack of professional
definition and licensing
• Consumer confusion
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• New fields
• Lack of professional
definition and licensing
• Consumer confusion
• Training issues
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
• New fields
• Lack of professional
definition and licensing
• Consumer confusion
• Training issues
• Small research base
Financial Coaching/Therapy
Atlanta Financial Psychology Mary Gresham, Ph.D.
Thank you
Atlanta Financial Psychology Mary Gresham, Ph.D.
Atlanta Financial Psychology Mary Gresham, Ph.D.
Atlanta Financial Psychology Mary Gresham, Ph.D.
Atlanta Financial Psychology Mary Gresham, Ph.D.
Atlanta Financial Psychology Mary Gresham, Ph.D.
Atlanta Financial Psychology Mary Gresham, Ph.D.
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