As communities navigate the journey to disrupt poverty and dismantle the systems that perpetuate it, financial coaches emerge as unsung champions and untapped resources. For those yearning for economic stability and security, financial coaches offer a glimmer of hope and serve as pillars of support – yet their potential is often hindered by obstacles they face that are posed by our complex economic systems.   

Many of those who have wealth seek out professionals to implement a comprehensive financial and investment plan to secure their assets now and in the future. Why is it that for those that do not have wealth, those who could benefit from this critical information the most, it is nearly impossible to access similar services? As the idiom goes, “it takes money to make money.” But what happens when money can scarcely help one survive? A systemic dysfunction is apparent, one that can be addressed by investing and growing a financial coaching infrastructure. 

Financial coaching (and counseling) requires a comprehensive set of skills and technical expertise. Financial coaches are advisors, motivators, problem solvers, advocates, accountants and financial analysts. They must know the myriads of anti-poverty federal and state programs, their dizzying eligibility requirements and application processes.  

That’s not all. Since many of their clients are experiencing financial duress and suffering perpetuated by poverty and scarcity, they must also be skilled in providing trauma-informed approaches. And in that, they must understand the racist history and impact of our inequitable economic system to properly assess the drivers of financial stress and instability in their clients.

To address resource gaps, they explore the market for available resources, maintain organized lists of providers, and assess the suitability of those resources for their clients. In some cases, the objective is to stabilize a client’s financial crisis, and in others, to help achieve a long-term financial goal. Their assessment goes beyond the individual client: financial coaches remain cognizant of the economic environment and emerging trends, often being the first to see the cracks in a looming economic crisis.  

In the non-profit sector, financial coaches often have lived experiences of poverty and being income constrained or asset deprived themselves.  

“Coaches meet people facing challenges and systemic barriers, often with limited resources. They're really trying to meet people where they’re at and doing that in a way that is empathetic and understanding. We're trying to create access points for these coaches to be able to develop the skills they need to be effective in their roles,” said Christine Niccoli, Director of Economic Inclusion and Wealth Building at United Way of Massachusetts Bay. Their impact extends beyond helping an individual to budget or improve their credit score. It involves trust-building, compassion, and empowering individuals to understand their circumstances, make informed decisions on the path forward and act. 

The contributions and benefits of financial coaching are overlooked and underappreciated, underscoring the need to professionalize the financial coaching sector. United Way continues to give the financial coaching network greater prominence and provides them the supports and recognition they deserve so that our communities are better informed about what financial coaches offer, the philanthropic and public sector appreciates their value and invests in the expansion of these services and, so that they are better supported in their workspaces and can experience financial growth and long-term successful careers.  

We emphasize the need for a concerted effort to professionalize the financial coaching space around four overarching themes: 

1. Access: There's a significant demand for services but certainly not enough financial coaching capacity to meet that demand. To grow the supply of coaches, financial coaching training opportunities need to be properly resourced; few nonprofit organizations have the resources to invest in the depth of training and skills needed to be a successful coach. “A critical piece for systems change is investing in the supportive infrastructure including nonprofit staff and their professional development to ensure financial wellbeing strategies are effective, and this is what United Way has been and continues to do” said Niccoli.

2. Professionalization: Financial coaches need the skills, training, and support to be equipped to address the complex, intensive economic circumstances facing lower income communities. We are investing in coaches to help them obtain industry recognized credentials and opportunities for ongoing growth and development. We need the financial coaching network to be strong because so many are suffering financially now. And it is time for the industry to recognize financial coaching as a skilled profession. 

Since 2015, United Way has provided professional development for nonprofit financial coaches through the Financial Empowerment Learning Institute (FELI). In 2023, we collaborated with the Association for Financial Counseling and Planning Education (AFCPE®) and Dragonfly Financial Solutions. AFCPE® offers a nationally recognized financial counselor certification requiring a proctored exam, 1000 hours of experience, code of ethics agreement, and online curriculum completion. Dragonfly Financial Services provided instructor supported learning and exam prep sessions in a four-month intensive training program. AFCPE® provided scholarships for 14 financial coaches covering registration, curriculum, and exam costs.  

Nathalie Kallab Racimo, Senior Homeownership & Financial Services Advisor at Neighborhood of Affordable Housing (NOAH) a beneficiary, is one of the coaches now AFC® certified. Listen to episode 102 of the AFCPE® podcast “Real Money, Real Experts,” featuring Christine Niccoli and Nathalie Kallab Racimo discussing nonprofit financial coaching and the benefits of obtaining a national accreditation.

3. Awareness: Many are not aware of what financial coaching is or what coaches do. To better reach the intended population and build a strong and effective network of financial coaching services, the public needs to better understand the role of a financial coach, what their services offer, and the impact they have in the lives of those they serve. 

4. Narrative reshaping: Financial coaching is more than addressing the financial insecurity of an individual through that individual’s own “hard work.” It is a key component of a holistic wealth building strategy that enhances the effectiveness of other economic mobility approaches like Guaranteed Basic Income, Baby Bonds, or Matched Savings. And because of the personalized nature of the work, financial coaches amplify the voices of community who are often neglected and marginalized.  

During Social Mobility Awareness Month, we reflect on the systemic barriers hindering upward mobility for marginalized communities and explore strategies to overcome them. With their unique blend of technical financial expertise, cultural competencies, and coaching skills, financial coaches empower individuals to achieve financial stability with personalized guidance, support, and education that can lead to transformative changes in their financial lives.  

United Way's commitment to systemic change includes investment in the capacity and professionalism of service providers to achieve lasting impact. By enhancing the support and resources available to financial coaches, we can ensure these essential services reach those who need them most and ultimately make for them a more equitable and financially secure future possible.