Money is so much more than numbers. Basic practical finance is not academically difficult for most. So why is it that so many do not pay attention to their finances? In the first of our two-part series on financial wellbeing, we speak to Fanny Snaith to explore how money coaching can help.
Fanny Snaith, Certified Money Coach (CMC)®, works with many high achievers who, when it comes to money, feel fear, anger, guilt and shame amongst other emotions. In the first of our financial wellbeing articles, she shares her insights on how money coaching can help your mindset to enable you to become financially centred.
For most, a salary goes into the bank every month, giving a sense of security. However, emotions around where the money goes arise from many a corner.
How we think and feel about money makes the biggest impact on how we manage it and how financially successful we become. If we feel negative emotions towards it, there will be no motivation to figure out what we need to do to keep it safe, save well and make it grow.
Breaking the taboo: let’s talk about money
Money is often considered a taboo subject. We would rather talk about death and sex than money. Unless we address how we think and feel about money, practical guidance will fall on deaf ears for many.
Our thoughts about money generally stem from our childhood. How our parents talked about and handled money provides the foundation to how we may handle money. Take some time to identify and explore the messages you received about money as a child. It could go a long way to explain why we would rather do the washing up than work on our finances!
The messages we received form our ‘money scripts’ – the beliefs we have about money. For example:
- “Money doesn’t grow on trees”
- “You have to work really hard for your money”
- “We can’t afford it”
- “Only clever people get rich”
- “Getting rich makes you happy”
In reality, the problem we have is not money. The problem is how we approach money – the way we think about and handle it.
Finances in a time of crisis
The current coronavirus crisis has affected us all financially. But for those who were already struggling financially, that will likely be magnified. Feelings of fear and panic may become more common in even the most resilient. This is why now, more than ever, is the time to embrace personal money management confidently and comfortably.
For those who have long avoided facing their finances, money coaching could be the answer.
What’s the difference between financial advisory and money coaching?
Money coaching (using the methods of the Money Coaching Institute) focuses on feelings first. Using a unique archetype system, students are encouraged, in a fun way, to learn about their relationship to money whilst also learning practical money skills. The emphasis is on education and there is no selling of products.
Money coaching does not replace the work of an independent financial advisor, but it can resonate with and motivate those who either cannot afford to start investing or do not initially have the interest. Using methods to enable people to begin to freely express their emotions around money, Fanny’s coaching sessions create a space for clients where they know they won’t be judged in any way. Once trust is established through fun exercises and open conversation, practical skill lessons are absorbed and utilised much more efficiently.
In the second of our two-part series, we’ll be exploring the different types of money mindset and their characteristics, as well as common money problems faced by people in the UK. Get in touch to book a group workshop or one-to-one consultations with Fanny Snaith via the Urban for Business platform.