The differences between a money coach and a money adviser
Money coach and money adviser are two terms that are often used interchangeably, but they are not the same thing. Both professionals help clients manage their finances, but the approach they take is different. Here's a closer look at the difference between a money coach and a money adviser.
A money coach is a professional who helps clients develop a plan for achieving their financial goals. They work with clients on a more holistic level, taking into account their values, beliefs and attitudes toward money. Money coaches focus on behaviour modification and helping clients make better financial decisions. They often use tools like budgeting, debt reduction strategies and saving plans to help clients achieve their goals. Money coaches are not licensed financial advisors and they don't provide investment advice or recommend specific financial products.
A money adviser is a professional who provides debt advice and helps clients find a solution to manage or clear their debts. In Scotland, money advisers are regulated by the FCA and either work in the free sector such as Citizens Advice Bureaus, or for licensed insolvency practitioners. They will always complete a financial questionnaire with a client which looks at their budget to determine if they are able to make a contribution towards their debts or not. They can provide advice on solutions such as The Debt arrangement Scheme, Trust Deeds, and Sequestration (Bankruptcy).
One of the primary differences between a money coach and a money adviser is the focus of their work. Money coaches focus on the behaviour and mindset of their clients, while money advisers focus on helping clients resolve their problem debt issues.
Money coaches help clients identify their financial goals, and then develop a plan to achieve those goals through behaviour modification. Money advisers help clients find solutions to either repay their debts in full or write off a percentage of that debt. The solution will depend on each client’s individual circumstances.
Another difference between a money coach and a money adviser is the level of certification required to practice. Money coaches do not need to be licensed or certified to work with clients. However, many money coaches do have certifications in related areas, such as financial planning or life coaching. Money advisers, on the other hand, must be registered with regulatory bodies, either directly or under an Insolvency Practitioner, to provide advice to clients.
In conclusion, both money coaches and money advisers can be valuable resources for clients looking to improve their financial situations. However, their approaches and areas of focus differ significantly. Clients should consider their specific needs and goals when deciding which type of professional to work with.
At Thomson Cooper, our money advisers can help you find the right solution to deal with any problem debts. We offer free, confidential, non-judgemental advice. For more information, or to speak with one of our advisers please contact:
Contact:
Ian Brown
Senior Insolvency Manager
ibrown@thomsoncooper.com
Phone: 01383 628800
Mob: 07519 124657
Richard Gardiner
Partner
rgardiner@thomsoncooper.com
Phone: 01383 628800
Mob: 07872 376105
Maureen Walls
Senior Insolvency Manager
mwalls@thomsoncooper.com
Phone: 01383 628800
About the author
Ian Brown
Ian is an expert in the Debt Arrangement Scheme and Business Debt Arrangement Scheme, assisting individuals, sole traders and partnerships.
He also advises on personal debt solutions recommending the best option to resolve problem debt issues.