Financial coaching is a relatively new service aimed at those without mega bucks who nonetheless want to get their finances into shape.
You will get time on the phone, or a Zoom call, with your own financial coach who will listen to your circumstances, learn more about you, tell you about your various options and help you work out what to focus on and how to go about this.
It is not regulated financial advice. What this means is you will get someone who talks to you about your situation, gives you a steer, can outline your choices and give you the ammo you need to make decisions. But they will not be able to categorically say “Do this” or “Buy that”.
Whilst coaching can be very goal based, it is not simply the emtional "wishy-washy" stuff. Instead you will have a thorough financial call which you will come out of with actions and next steps to take. Coaching can leave people feeling empowered and confident in their financial situation.
The costs will differ from provider to provider but expect to pay in the region of £200 - £300 a year. Some individuals may quote you a fee for a specific course or period of time.
Octopus MoneyCoach supports employees with its coaching services and supports payment via salary sacrifice which lowers the costs for staff to £12 - £14 a month.
Other providers, such as Claro, will charge per call with your coach. Expect to pay in the region of £50 - £100 for a call with a coach.
You can either decide to look for an individual, to use a larger firm such as Octopus MoneyCoach, or maybe you would prefer something app based like Claro. The usual pros and cons of dealing with one individual as opposed to a larger firm are the same as with other purchasing decisions. It’s choosing an individual versus choosing the larger company which will have more controls and processes and ultimately ‘underwrite’ the service BUT you don’t have the same control over WHO you speak to or end up with.
You can either look at our Adviser Directory and find an individual coach there.
If you prefer a service which tells you precisely what to do and buy then consider Digital Advice as an alternative option which is lower-cost than traditional financial advice. Online digital advice is best if you just want to save into an ISA or pension and want to be told what to do and what to pick. Hybrid digital advice will give you the option to speak to an adviser along the way, but also benefit from the flexibility and the convenience of a largely digital set-up.
If you are an employer, myEva and OpenMoney have interesting low-cost options for staff which are digital guidance and advice options, rather than coaching. There will be less individual human contact but more of a steer on the specifics of what precisely to set up and do.