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Here’s how financial coaching can help you meet your money goals – saving, building credit and more

We talked to people across the country about financial well-being and what it means to them. Many people told us that financial well-being means:

  • Feeling in control of day-to-day finances.

    •    

  • Having a safety net to help stop a financial shock from turning into a long-lasting setback, and
  • Staying on track to meet financial goals while also having the freedom to enjoy life, which means different things to different people. For some that means taking a vacation, for others it’s about going out to eat, and for others it could mean working less to spend more time with family.

At the CFPB, we believe all consumers have the right to achieve greater financial wellbeing for themselves and their families. That’s why we’ve studied a promising approach to financial education: financial coaching.

How financial coaching helps consumers

Earlier this week, the Urban Institute released a study we commissioned, which found that financial coaching can help increase financial well-being.

The study analyzed two different coaching programs serving low and moderate-income consumers – Branches, a faith-based social services organization in Miami and the Financial Clinic, a non-profit financial services organization in New York City. Financial coaching is customized to meet each person’s goals, and the study found that coaches can help people achieve financial outcomes that are most relevant to their own situation. The study showed that on average, people offered access to financial coaching:

  • Increased savings by almost $ 1,200 in New York City
  • Reduced debt by over $ 10,000 in Miami
  • Increased credit scores by 21 points in New York City
  • Were more likely to pay bills on time
  • Reported an increased sense of confidence in their finances and reduced feelings of financial stress

Check out the study here to learn more about these financial coaching programs and how they serve consumers.

Here’s how coaching can help you meet your financial goals graphic

So, what does a financial coach do?

Financial coaches can help you address concerns by assisting you in defining your own personal financial goals as well as the steps you need to take to meet your goals. Financial coaches usually meet with clients one-on-one, and can help you:

  • Determine and define your financial goals
  • Develop concrete plans to meet those goals
  • Provide support over time as you work toward your goals

Our financial coaching initiative

The CFPB has a financial coaching initiative that provides guidance to recently-transitioned veterans and vulnerable families in places where they’re already going for assistance. We’ve joined forces with the Department of Labor (DOL) and more than two dozen non-profit social-services providers to place certified coaches in DOL American Job Centers and community-centered non-profits across the country.

This article by Janneke Ratcliffe was distributed by the Personal Finance Syndication Network.

Personal Finance Syndication Network


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Category: Best Low Fee Prepaid Cards

Millions of people are turning to prepaid debit cards as a smart alternative to carrying cash and writing checks. Almost anyone can qualify and they don’t require a credit check or a bank account.

Though they carry credit card logos and can be used anywhere a credit card is used, unlike a credit card, they do not offer a line of credit. The user can only spend the amount that has been loaded onto the card or placed into the account associated with the card.

There are dozens of debit cards on the market, many of them issued by the same bank, but fee structures are vastly different. Bestprepaiddebitcards.com has done all the research for you and provides comprehensive reviews to help you decide which card is best for you.

GO2bank Offers Overdraft Protection up to $300.

And build your credit with the GO2bank Secured Visa® Credit Card with no annual fee*, no credit check*, and no impact to your credit when you apply. (sponsor link)

  • Here’s how financial coaching can help you meet your money goals – saving, building credit and more

    Here’s how financial coaching can help you meet your money goals – saving, building credit and more

    We talked to people across the country about financial well-being and what it means to them. Many people told us that financial well-being means:

    • Feeling in control of day-to-day finances.

      •    

    • Having a safety net to help stop a financial shock from turning into a long-lasting setback, and
    • Staying on track to meet financial goals while also having the freedom to enjoy life, which means different things to different people. For some that means taking a vacation, for others it’s about going out to eat, and for others it could mean working less to spend more time with family.

    At the CFPB, we believe all consumers have the right to achieve greater financial wellbeing for themselves and their families. That’s why we’ve studied a promising approach to financial education: financial coaching.

    How financial coaching helps consumers

    Earlier this week, the Urban Institute released a study we commissioned, which found that financial coaching can help increase financial well-being.

    The study analyzed two different coaching programs serving low and moderate-income consumers – Branches, a faith-based social services organization in Miami and the Financial Clinic, a non-profit financial services organization in New York City. Financial coaching is customized to meet each person’s goals, and the study found that coaches can help people achieve financial outcomes that are most relevant to their own situation. The study showed that on average, people offered access to financial coaching:

    • Increased savings by almost $ 1,200 in New York City
    • Reduced debt by over $ 10,000 in Miami
    • Increased credit scores by 21 points in New York City
    • Were more likely to pay bills on time
    • Reported an increased sense of confidence in their finances and reduced feelings of financial stress

    Check out the study here to learn more about these financial coaching programs and how they serve consumers.

    Here’s how coaching can help you meet your financial goals graphic

    So, what does a financial coach do?

    Financial coaches can help you address concerns by assisting you in defining your own personal financial goals as well as the steps you need to take to meet your goals. Financial coaches usually meet with clients one-on-one, and can help you:

    • Determine and define your financial goals
    • Develop concrete plans to meet those goals
    • Provide support over time as you work toward your goals

    Our financial coaching initiative

    The CFPB has a financial coaching initiative that provides guidance to recently-transitioned veterans and vulnerable families in places where they’re already going for assistance. We’ve joined forces with the Department of Labor (DOL) and more than two dozen non-profit social-services providers to place certified coaches in DOL American Job Centers and community-centered non-profits across the country.

    This article by Janneke Ratcliffe was distributed by the Personal Finance Syndication Network.

    Personal Finance Syndication Network


    By

  • RushCard Glitch Locks Out Thousands of Prepaid Card Customers from Accounts and Prompts Investigation

    RushCard Glitch Locks Out Thousands of Prepaid Card Customers from Accounts and Prompts Investigation


    Hundreds of thousands of Americans are still without access to their paychecks after a glitch struck RushCard, Russell Simmons’ prepaid debit card company.





    According to an article in Rolling Stone, accountholders, many of whom are low-income and lack access to other banks, found that they had lost access to their accounts nearly two weeks ago. Although the company has assured customers that they are working around the clock to fix the error, the Consumer Financial Protection Bureau (CFPB) has launched an investigation into the organization.  Many customers have been without access to their funds since October 12th.

    “It is outrageous that consumers have not had usage of their money for more than a week,” bureau officials said in a statement.

    They are currently working with other agencies, including the Federal Trade Commission and the Office of the Comptroller of the Currency in a joint effort to hold those responsible for this problem accountable.

    According to the Wall Street Journal, the Consumer Financial Protection Bureau announced the investigation on Friday. A director with the bureau, Richard Cordray, said they’d reached out to RushCard CEO, Rick Savard, spoke of the “cascading financial effects of consumers not having access to their funds for more than a week.”

    Simmons issued a statement reassuring customers that they were working hard to correct the problem and doing everything they could do.  Savard blamed the glitch on transferring to a new processing system.  To aid in customer communications, he added that command centers have been set up to help field customer complaints.

    As of right now, RushCard has promised that it would waive the $1 fee that clients incur each time they use their card through Feb. 2016, and business executives have said that users will receive additional compensation for their struggles.

    “Very soon, RushCard will be making a significant announcement on how we plan to make this right with our customers who were severely inconvenienced, and in some cases, suffered hardships,” Savard stated.

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