FINANCIAL COACHING TRAINING Tool Kit. Central New Mexico Community College

Transcription

1 FINANCIAL COACHING TRAINING Tool Kit Central New Mexico Community College CNM is a CCE-approved Training Provider for the Board Certified Coach Credential

2 This tool kit may be used by individuals who have completed the 40 hour Financial Coaching Training offered by CNM Ingenuity, Inc. at Central New Mexico Community College. The documents found in this toolkit are taken directly from the Financial Coaching Workbook. These materials may be used when working with clients and, when reproduced, must display the copyright at the bottom of each page. These materials may not be reproduced for any other purpose without permission from CNM Ingenuity, INC. We gratefully acknowledge the following copyrights for the Financial, career and change tools used in these education materials: Wheel of Life Laura Whitworth, Karen Kimsey-House, Henry Kimsey House and Phillip Sandahl, Coaches Training Institute (CTI), Co-Active Coaching, new Skills for coaching People Toward Success in Work and Life. Davies-Black Publishing, Mountain View, CA, USA. C O A CH Model Ian Fleming and Allen J.D. Taylor, The Coaching Pocketbook. Sentinel Press Printing, St. Cloud, MN. SMARTER TM Goal Planning Jean Strosinski. Constructive Choices New Mexico, LLC. Reprint with permission of author: Jean@constructivechoices.com

3 HOW WAS MONEY MANAGED IN THE HOUSEHOLD WHERE YOU WERE RAISED? Was money managed well or poorly in your household? Was money modeled in a cooperative manner or did it create conflict Were money matters discussed freely in your family or rarely discussed? We all have different values, feelings and views about money. Where does that come from? It comes from our personal experiences, culture, and economic background. Taking time to understand and reflect about your our money beliefs will help you to understand why you manage money the way you do. Let s spend some time discovering your money beliefs. Answer the following questions: Was money discussed at all while growing up with your family? If yes, how and when was it discussed? Who was in control of the money in your family when you were growing up? When did you begin to understand the importance of managing your money? Who is in control of the money in your household now? Do you now handle money similarly, or differently, from the money management style in which you were raised? If your close family or friends were to describe how you manage money, what would they say? What are your aha moments as you have gone through this exercise?

4 INCOME GENERATION Finding that extra fifty, thirty or even twenty dollars in your budget can be trying, especially after you have created a very tight budget trimming excessive/luxury cost. What do you do? Find a part time job? Maybe seek a higher paying job? Or play your chips all on black? Often times, when faced with financial difficulties, we overlook creative ways to increase our income. Do you have a skill, hobby or talent that can bring extra dollars into your home? What about public resources available to you that can help in the short term? Spend some time with your peers to discuss ways you can generate income formally and informally. Collect child support Formal Informal Renting a room in your home

5 ANALYZING SPENDING Creating Your Spending Plan Budget Financial Plan Money Map Spending plan It doesn t matter what you want to call it, they are all the same. A spending plan basically shows you how much money is going in and how much money is going out of your household. So, why develop one, other than to know how much money is going in and out of your household? What are the benefits of creating a spending plan? Before you begin creating your spending plan, create a goal. Then begin tracking where you spend your money? If you want an accurate budget, track yourself for a month. There are many tools out there to help you track your money. A simple notebook, logging into your smart phone, tracking in your planner, etc just BE CONSISTENT! Days What did I spend my money on? How much was that? Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total $ * If you want a quick snapshot of where you are spending your money take a quick look at your last three financial statements. Highlight everything you could have gone without and add those numbers. What could you do with that number?

6 SPENDING PLAN Once you have tracked yourself for a couple of weeks (ideally a month), you will want to enter that information into a SPENDING PLAN. See example below: Month Income Projected Actual Monthly income Savings Projected Actual Monthly contributions savings Monthly contributions to investments Expenses Projected Actual Home Rent or Mortgage Insurance (home or renters) Property taxes Home repairs, HOA dues, etc Other Utilities Electricity Water and sewer Gas Trash Other Transportation Gas Auto repairs/maintenance Auto insurance Other (bus, taxi, subway, etc..) Debts Payments Student Loans Credit Card Auto Loan Food Groceries Eating out, lunches Miscellaneous Expenses Medical bills and copays Prescription medicines Pet supplies and vet exams Clothing Toiletries, household products Grooming (hair, make-up) Entertainment, going out Cable, Movies Telephone & Internet Club dues Subscriptions, newspaper, magazine Church Tithes and Offerings Charitable contributions School tuition/ supplies Other TOTAL

7 Importance to me PRIORITIES CHART How well I am doing in: managing day-to-day expenses home ownership / rent saving for an emergency children s education getting out of debt improving my credit rating living within my income helping out family members improving my career having health insurance having life insurance home repair car repair dental or medical needs having car insurance retirement savings starting a small business keeping financial records orderly going back to school will and other estate documents saving for a car investing tax filing/ planning connecting to public benefits having a job that supports my family job retention/ promotion checking my credit report having job benefits

8 PRIORITIES HANDOUT What are your top three priorities for your financial life? What do you think your clients top three priorities are for their financial lives? How well are you doing on your top three priorities? Which of your priorities are similar to your clients?

9 MIND MAPPING

10 VALUES PRIORITIZATION WORKSHEET List your five values, with your definition, that are important to you. My Values Prioritized I am meeting these values Most important not at all somewhat mostly definitely Least important

11 BELIEFS ABOUT MONEY Directions: Put a check mark ( ) next those statements you agree with. People like my family and me can never get out of debt. I'm not smart enough to do this. I m not disciplined enough to save and get out of debt. I can t get my spouse/partner to quit spending money. The only way to get rich is to win the lottery or gamble at the casino. Saving $10 a week is never going to get me enough for retirement. Families are expected to support each other in our culture, so that means whenever I save any money I end up giving it to a family member. I'm a single parent. It's impossible to save. I deserve a nice car, TV, clothes... Investing is for white people, smart people, college people, etc. Once I save a little, something happens and I have to spend it all...what's the point? I'll just spend it now. My credit is so bad, it doesn't matter what I do. I can t save enough to make it worthwhile. (What I can spare is too little.) You have to have money to make money. (Investing is for the rich.) Investing / the stock market is so confusing and complicated, it's like rocket science. I'm too old; it's too late for me. I'm too young to worry; I have plenty of time, why should I care? What I want and will enjoy now is more important than what I might need in the future. Buying things makes me happy. There s never enough.

12 EMOTIONAL STATES WHICH MAY ACCOMPANY MONEY BELIEFS Abundance Amusement Anger Anxiety Assuredness Calm Compassion Competence Curiosity Desperation Determination Discouragement Driven Ease Enjoyment Enthusiasm Fear Frustration Generosity Grace Gratitude Greedy Guilt Happy Helpless Hope Impatience Insecure Insignificance Inspired Interest Isolation Joy Mistrust Obsession Overburdened Overwhelmed Pleasure Pride Prudence Safety Satisfaction Self-sufficient Serenity Shame Skepticism Stress Tension Tranquility Victimization Weariness Worry

13 BELIEFS ABOUT MONEY Write one of your beliefs about money (either from the list or create your own). What emotional states tend to accompany that belief (see list)? What money related behaviors do you engage based on your belief and accompanying emotional states? What is one money-related behavior you would like to engage in? What emotional states would accompany that behavior? Write the new belief you would have after consistently engaging in your new behavior and feeling the emotional states that accompany that behavior.

14 SMART GOAL WORKSHEET A SMART Goal is: Specific Save $2,400. Able to be measured I ll put $100 a month into a savings account. Likely you can attain it Realistic I will cook dinner at home and save the money from eating in restaurants. It will take commitment so I will have $50 automatically deposited into savings 2x a month. Tied to a time schedule In two (2) years, I will have saved $2400. Your SMART goals: Coaching: Financial:_

15 PURCHASING BIG TICKET ITEMS When do you know if you are ready to buy a vehicle? How about a home? Can you remember what it felt like to purchase one of these items? If you knew then what you know now about purchasing a vehicle or a home, what would you do differently? Let s spend some time discussing the advantages and disadvantages in the following categories: Vehicle Advantages Disadvantages Advantages Renting Disadvantages Advantages Homeownership Disadvantages

16 WHEEL OF LIFE

17 TEN DAILY HABITS Keeping yourself well between coaching sessions is essential. Coaching can require energy: emotional, intellectual, and physical. Given this, you ll want to take extraordinary care of yourself while in the coaching process. Only you know what this looks like, and you can go much further than you ever have in this regard. The place to start is to develop a list of TEN DELICIOUS DAILY HABITS that can keep you well. Many of these do not cost money, just time. They will and should change over time, but some EXAMPLES to help you get started are: * Exercise: walking, yoga, running, and martial arts... whatever you enjoy * Read inspiring books from the library * Listen to great music * Eat right: more vegetables, less: fat/sugar, caffeine, & alcohol * Write in your journal * Start being early for everything; avoid the tension of rushing * Handle a completion (i.e. work on finishing something you have started that has been in limbo ) * Under promise: give yourself the luxury of extra time * Call a friend * Meditate Add anything to the list that nurtures you. Make yourself a promise to do these things for your self.

18 MY TEN DAILY HABITS LIST

19 MY MONEY TIMELINE On your Money Timeline, include events that had an impact on you over your life span such as: Births, deaths, divorces, marriages First credit card, checking or saving account New jobs acquired or old jobs relinquished Purchasing large ticket items like homes or cars Purchasing stock or retirement accounts Educational goal completions PAST $ TIMELINE Name It give it a theme: FUTURE $ TIMELINE Name It give it a theme:

20 RESOURCE MAP

21 INVESTING FOR YOUR FUTURE How old will you be in 25 years? What do you hope to be doing when you retire? Are you ready? Let s spend some time thinking about your golden years. What would you like to be doing with family, where would you like to travel, what sort of toys do you see yourself having, and the list goes on. Spend some time listing some goals for each category below: Family Travel Toys Hobbies Health Other Do you have enough saved for retirement to do the above activities? What does investing mean to you? Investing means having your money work for you so that you have the life you want to live. Typically if we want more money, most people think that we need to work more hours or get another job. Some people may even think that gambling is a form of investing - it is not. When you begin to think about investing, first decide why this is important to you. Is it that you want a sense of personal security, knowing that you will have the ability to afford the things in life, or what else? Before you begin to invest there are some basic steps that you should consider taking what are they? Learn basic money skills

22

23 INDIVIDUAL PLANNING TOOL What do you want to work on? What s going on right now? What have you already tried? What result do you want? What is your outcome? What steps do you need to take? This outcome is important to me because What is your deadline for achieving this result? How will you let me know that you achieved it?