New ideas and information on financial coaching from Summer 2016 Financial Coaching Newsletter, Center for Financial Security, University of Madison
Center for Financial Security and Robert Wood Johnson Foundation Health and Finances Research Workshop
The intersection of health and finance is an increasingly linked area of study that continues to gain traction in research and policy. Collaboration and discussion across disciplines and sectors of health and financial well-being are fundamental to the progress of these fields.
A paper on the interactions between financial literacy levels and the demand for professional financial advice. This aims at explaining why investors with low financial capabilities tend to ask less often for advice than their financially literate counterpart.
This brief by Christi Baker and Collin O’Rourke summarizes findings from a group financial coaching program piloted by the Maryland CASH Campaign in spring 2013. The program was developed as a way to deliver financial coaching services efficiently by building on the success of group-based weight-loss, social work, and other behavior-change programs.
Financial coaching is an emerging complement to financial education and counseling. As defined in this article by J. Michael Collins, Peggy Olive, and Collin O’Rourke, financial coaching is a process whereby participants set goals, commit to taking certain actions by specific dates, and are then held accountable by the coach.
Michael Collins provides illustrations of the potential for a new wave of innovations in financial capacity building. Critical next steps include discussions about how financial education can be delivered with the goal of increasing referrals and access to services.
This study by Wendy L. Way, Nancy Wong, and Damiana Gibbons examines interactions focused on personal finance that took place on a sample of blogs and Internet discussion forums. Findings suggest that, in online interactions, individuals address topics that personal finance professionals consider central to building financial capacity.
The results of this study demonstrate the problems that older adults face today, and that younger cohorts will face to an even greater extent in future years. As the complexity of individuals’ financial lives grows, the role of cognitive functioning in determining financial outcomes is likely to become increasingly important.
Financial counseling may be an effective way to improve individuals’ financial behavior and outcomes. However, its impacts have not been adequately studied. Previous studies show weak positive effects of counseling, but are subject to a number of limitations.
Low and moderate-income households are less likely to plan for long term financial goals, including retirement, and are less likely to seek out assistance with long term financial planning. Offering behavior-based financial planning interventions that leverage technology at teachable moments may prove to be an efficient and effective strategy to reach this vulnerable population.