Do You Want To Get Financially Fit?

by David Prosser

26th March 2022

Do you need a personal trainer? What about one to get you financially fitter? A growing number of specialist financial coaches are offering to do exactly that.

“It is all about dealing with the relationship we each have with money,” says Catherine Morgan, who runs The Money Panel, one such service. “Most of the decisions we make about money are not really about money at all.”

Rather, Morgan believes most people have unconscious financial behaviours learnt over many years that reflect the way they feel about themselves; these behaviours get in the way of good money management, so they need to be understood and unpicked.

To illustrate the point, Morgan points to high earners who don’t believe they really deserve to have money and are therefore prone to over-spending and wastefulness. Similarly, people who grew up worried about money may be prone to overcautious and risk-averse behaviour that puts them off saving and investing: “These behaviours are very powerful and they get in the way.’’

Financial coaching is distinct and separate from financial advice. It is not regulated by the Financial Conduct Authority, since coaches are trying to equip clients with skills to make better financial decisions, not recommending a particular provider or products.

Different coaches offer different types of service. Take Octopus MoneyCoach, which is “for those for whom traditional advice is overkill”, says CEO Adam Price. Some people don’t need full financial advice, he adds – they just need support to help them make the right choices.

“We show people how on track they are to be able to afford their future hopes and dreams; then we show them how much better the future could look, if they tweaked their spending, saving, investments, pensions, mortgages or life insurance. The coach then stays on hand to guide them through an action plan, and we repeat this process each year.”

Services like this can be more affordable than traditional financial advice. Octopus MoneyCoach charges £249 to work with a coach for a year; it also works with employers who can offer its services to staff through salary sacrifice schemes that effectively bring the cost down even further. By contrast, The Money Panel charges £2,500 for a three to six month personalised coaching plan, though it also offers much more affordable seminars and group training.

Every situation is different, and more options are emerging to ensure people get the personalised help they need – irrespective of wealth or the complexity of their situation.

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‘‘Most of the decisions we make about money are not about money at all’’