What is it that prevents people from talking about money comfortably? For many people the reason is cultural – money is a subject that is considered too private or personal. Other reasons include a lack of knowledge or personal financial struggles. At the same time, money is an important topic in coaching because it impacts attitude, stress levels, and decisions.
What happens if the coaching client is uncomfortable talking about money? If a client is managing their budget, the impact is negligible or indirect. If a client is struggling financially, it impacts how they function and what they accomplish. If the client is the one paying for coaching, it may mean discontinuing services regardless of the benefits.
What happens is the coach is uncomfortable talking about money? Potentially the coach is simply ‘unavailable’ to discuss an important topic. This could have ethical implications and it could impact effectiveness of the coaching process.
How do you become comfortable talking about money during coaching sessions? As the old saying goes, knowledge is power. The basics to managing money include five simple steps:
- Know what is coming in and when, and then knowing what is going out and when.
- Track everything you spend – this is easier with checkbooks and credit cards and more challenging when it comes to cash (keep a register just for cash).
- Plan your spending for fixed, variable, and periodic expenses, then compare the plan with the actual so you can choose what you want to adjust the next month.
- Save for emergencies, periodic expenses, and big purchases.
- Set goals around what you want and when you want to achieve it.
As a coach, educate yourself on money and tools for managing money. For example, in the Certified Master Coach class this is discussed and tools are provided so that the coaches are more prepared when discussing money makes sense for their coaching clients.