One-on-one, individualized financial coaching remains the MSFCP North Star and the key component to student success. Coaching helps students achieve the ultimate goal of changing behaviors and building healthy financial habits. As such, MSFCP colleges must provide each student with at least two financial and preferably three coaching sessions with a trained and certified financial coach.
Research in behavioral economics has found that personal finance workshops and classes alone are not likely to change habits and build long-term behaviors. If the information imparted in the course is not timely or relevant, the student will not act on it or remember it. One-on-one coaching coupled with a class is a more effective way to change behavior, because the student identifies the financial goals and issues that are affecting them at that point in time.
Ideally, the active learning strategies embedded into the MSFCP curriculum are supported and augmented during the one-on-one financial coaching sessions. The financial coach works with each student to a) expand on what they learned in the classroom, b) deepen their awareness of how to reach their goals, and c) build financial efficacy by the end of the course. Working in partnership, the course instructor and coach work collaboratively to ensure that both the classroom activities and the individualized coaching help each student meet their goals.
Effective financial coaches employ four core skills: listening, effective exploration, self-management, and intuition. Utilizing these skills symbiotically, the coach guides the student towards identifying goals and creating strategies to meet their goals. Building trust, motivating students, and keeping students on track are paramount. Accordingly, the coach must:
- Be student-centered and goal focused.
- Use active listening and empathy.
- Emphasize monitoring and accountability.
- Establish a relationship of trust.
- Maintain regular meetings.
- Provide motivation and encouragement.
- Place responsibility for action on the student.
- Keep the student engaged.
MSFCP college coaches attend an annual training. MSFCP colleges also participate annually in an in-person peer learning meeting in which best practices of coaching are shared and discussed.