Defining the Landscape: What is Financial Coaching (and What It Isn’t for a Planner)?

The term “financial coaching” is becoming more common in South African finance circles, yet it’s often misunderstood. For financial planners and advisors, it helps to understand what this approach really entails, where it fits, and why it matters.

What is Financial Coaching?

Financial coaching is a structured process that helps individuals understand and improve their relationship with money. It draws attention to the emotional, behavioural and historical patterns that shape how people spend, save and make financial decisions. But coaching is not limited to exploring someone’s past or their psychology.

A financial coach works with clients to identify self-limiting beliefs which are internal narratives that say, “I’m not good with money,” or “I’ll never get out of debt.” Coaching helps people recognise those beliefs and replace them with something more constructive and empowering.

While financial coaching is rooted in mindset work, it is not only about reflection. It includes practical work too. Coaches often help clients understand their monthly budget, review their debt levels and encourage them to pay this off, calculate net worth, and build basic financial literacy. Coaches also assist clients in setting financial boundaries, particularly in complex family relationships.

What financial coaches do not do is provide financial advice. They do not analyse investment readiness, assess portfolios, or make product recommendations. That remains firmly in the realm of financial planning. The role of a coach is to support behavioural change and equip clients to make better use of the advice they receive from an Advisor or Planner.

How Financial Coaching Differs from Financial Planning

Financial planning focuses on helping clients reach long-term financial goals through strategy and structure. It involves technical knowledge, financial products, investment vehicles, and an understanding of legislation and tax. It is analytical and goal oriented.

Financial coaching, on the other hand, is about the human side of money. It begins with where the client is right now, emotionally and behaviourally, and supports them in building the habits and confidence needed to take charge of their money. Planning answers the question “how can I reach this financial goal?”  Coaching asks “why do I keep sabotaging my financial progress?” or “what needs to shift before I can act on good advice?”

In many cases, coaching provides the missing piece that allows planning strategies to succeed.

Do Financial Planners Need to Become Coaches?

Not at all. But having a basic understanding of coaching principles can help planners have more meaningful conversations. By recognising when a client’s financial obstacles are behavioural or emotional, planners can either adjust their communication approach or refer to a qualified coach.

This does not mean diving into therapy or shifting the planner’s role. It means learning to listen for what’s underneath the client’s money questions. A planner who understands coaching principles is better equipped to support clients who are anxious, overwhelmed, or stuck.

Why It Matters

Clients are becoming more self-aware and are looking for professionals who engage with them as complex human beings. For many, finances are deeply personal. They want advisors who understand that money is tied to values, identity, and often, insecurity, pain or fear.

Understanding the value of financial coaching helps planners build stronger relationships and hold different kinds of conversations. In a competitive field, it is this deeper connection that clients remember, and return to.

Next: Practical Tools to Explore Client Money Behaviours.