A financial coach or life coach and a financial advisor are two very different types of people and career paths, but many confuse them as the same thing.
Financial Advisor vs Financial Coach (What’s the Difference?)
What’s a Financial Coach?
A financial coach helps his or her clients deal with a variety of problems ranging from personal life issues to finance-related issues as one can lead to the other.
Financial coaches don’t necessarily have or have to have a background in finance, and they act as almost therapists, gaining their clients’ trust.
However, financial coaches aren’t really supposed to tell their clients what to do with their financial affairs. And, when they do, they don’t always abide by ethical principles.
According to Bloomberg Business, 60 clients learned that they had been coached out of more than 6 million dollars in a fraudulent scheme after 13 years.
What’s a Financial Advisor?
On the other hand, a financial advisor is someone with a background in finance that is able to give proper advice to people experiencing financial hardship.
They typically will teach their clients basic terms, review budgets, determine what they should and shouldn’t spend on, and set up investments.
Financial advisors motivate, help achieve goals, and educate as well as establish trust.
Foundations, nonprofits, and the Consumer Financial Protection Bureau are hiring more financial advisors to work with Americans on their financial needs, especially low-income persons and veterans.
That is exactly what we here at DebtWave Credit Counseling, Inc. and the San Diego Financial Literacy Center do.
We have certified credit counselors and financial advisors who help people of all walks of life manage their credit card debt and provide low-to-moderate income households, military personnel, and high school and college students with complimentary personal finance information.
Despite not knowing the difference between a financial coach and a financial advisor, a lot of people hire financial coaches to straighten out their finances, but the wrong coach can make a bad decision even worse. That is why you should always make sure that the person that helps you with one of the most important aspects of life is someone that you trust and has certain qualifications to make informed decisions and the best ones for you.
We are always available to talk about finances and debt. Just give us a holler, email, or chat with us on our social media pages!