Financial Coaching Changes – How Covid Affected the Industry
From the global economy to individual personal finance status, the Covid-19 pandemic has sent shockwaves around the world that are still affecting every aspect of life for the majority of people. As a financial coach, your focus remains on providing the best information and guidance to clients. However, the changes over the past couple of years impact everything from the advice you give to the way you do business. If you do not adapt, you will not be able to continue helping those who need your expertise.
The statistical issues of economic slowdown, increased unemployment, and specific industry disruption may necessitate a complete overhaul of your methods and suggestions. Every money coach's purpose remains the same: to give the most effective and uniquely appropriate guidance to the people who count on you for their financial well-being. Every situation is different and deserves a customized approach from an expert who keeps their finger on the pulse of current issues and opportunities.
The Shifting Focus of Every Financial Coach
While the primary focus remains the same, there is no doubt that the pandemic affected how a financial coach must do business. The three main issues running rampant across the country and around the world include industry disruption from shutdowns, higher rates of unemployment, and finance industry issues like rising mortgage interest rates.
Although the pandemic caused a huge problem in 2020, things are actually settling down a bit at the end of 2021. For example, unemployment numbers are stabilizing as more people get back to work. They are approximately .4 million fewer people on unemployment then there were at the same time last year. The possibility of reclaimed or increased income may convince more people to enlist the help of a money coach to make the most of their investment opportunities.
The shift toward work at home, telecommuting, the gig economy, and sole proprietorship businesses also affects the overall form of advice. According to the US Census Bureau, people who do telework actually earn more than those still heading to a physical location every day. This may have a lot to do with the types of work that cannot be done from home such as positions in the restaurant industry and physical labor jobs.
What do these things mean for a financial coach? With more people concerned about employment and long-term finances, a shift toward security rather than risk seems prudent. Increasing financial literacy and recommendation research that looks at post-pandemic numbers mean more than any information or advice gleaned from the past decade.
Virtual Tech and Digitalization Lead the Way
Besides changes in the type of advice you give and the dynamic focus on how the Covid-19 pandemic will affect things going forward, the way financial coaching happens has also experienced a shift. Health and safety concerns combined with the overall increase in digital tech and communication methods have transformed the coach-client experience.
Virtual meetings on platforms like Zoom have taken over from in-office appointments. Documentation has been digital for quite a while, but comfort levels with other tech have increased across demographics, including those who have reached retirement age. Also, the more people work from home or start their own freelance adventures, the more they prefer conducting personal finance-related business from a distance.
How Will Financial Coaching Change Next?
There is no doubt that the Covid-19 pandemic disturbs everything from employment to long-term financial planning. With these changes affecting every adult around the world in one way or another, financial coaches have a newly important role in helping them achieve the type of security and wealth they want. While instability, doubt, and personal finance struggles related to this problem still exist, a money coach also has the responsibility to help alleviate fears and do everything they can to ensure financial safety for their clients.
That does not mean a financial coach becomes a therapist or that they should promote excessively positive outcomes. The pandemic has left the world in turmoil on multiple fronts. While things like increased telework and self-employment seem here to stay, there are still far too many questions about what will happen in the long run. The entire personal finance world has experienced more changes in the past two years than it ever has be
fore. People who engage the services of the money coach need a trusted source of information and guidance to see them through successfully to the other side.