In the financial world, who can and can not give financial and investment advice is heavily regulated. Financial advisors and planners must go through years of schooling and take multiple classes and tests from national regulating bodies to be certified.
But, those same regulations do not exist for financial coaches. Anyone, anywhere, anytime, can begin marketing themselves as a financial coach with little to no background and no regulating body. So, how do you know that the financial coach you are working with is qualified to help you with your money?
Luckily, multiple programs offer qualification certifications for financial coaches. We suggest coaches to look for certified financial coaches as Certified Money Coach (CMC) certification from The Money Coaching Institute or have completed Dave Ramsey’s Financial Coach Master Training (FCMT).
In this article, we will be discussing the benefits of working with a certified financial coach vs. a non-certified financial coach.
1. Guarantee of Knowledge
As we stated earlier, anyone can market themselves as a financial coach. Presenting yourself as a financial coach does not guarantee that you have the necessary knowledge required to perform the duties of a financial coach.
Financial coaches need to be knowledgeable about budgeting, taxes, debt, investments, fundamental financial planning, and more. This knowledge is required to ensure they can be ready to help their client with any situation presented.
When you hire a certified financial coach, you can guarantee that they have the necessary background knowledge to help you with your financial situation. The financial coach certifications that we listed here include several classes to educate financial coaches on everything they need to help you with your money.
2. Proven Resources
Most financial coaches provide resources to their clients. These resources include budgeting templates, cash flow trackers, debt payoff calendars, etc. While these are great resources to have, in many cases, they are unproven or do not work in all situations.
For an individual, non-certified financial coach, these resources are built from their own experiences and what they may have heard from their clients. The issue here is that their resources will always be limited to their own experiences and individual level of knowledge.
The financial coach certifications that we listed here provide resources for their certificants to assist clients. These resources are built over years of experience from several financial coaches and other industry professionals. These coaches have seen almost everything and have created these resources to fit as many situations as possible.
The last point that we have on this list is experience. As stated previously, you can not guarantee that a financial coach has the necessary knowledge to handle your specific financial situation. The best practical wisdom comes from experience.
The financial coach certification programs that we recommend are built by industry professionals with years of experience. This relevant experience is built into these programs, making certificants ready for and knowledgeable about every situation.
Financial coaching has become a very popular side hustle for many. Unfortunately, this has crowded the market, and try can not always guarantee that the financial coach you are working with is up to par. But, by looking for these certifications, you can be sure that the coach you are hiring has significant background knowledge and experience and is prepared to help you with your money.