Pro-bono advice or coaching is effective when used with the right client, but there are also risks in offering the services for free, says Graham Wells.
Wells, a financial adviser turned coach, who is also a fellow of the Personal Finance Society, has had great success with helping people get their finances on track for free.
Nevertheless, he warns for some people getting a coaching service for free can devalue the service and lead to a lesser buy-in into the service.
In a Q&A with FT Adviser in Focus Wells explains the power of financial coaching, when pro-bono work pays off, and why more needs to be done to empower people to take control of their finances, without relying on financial advice.
FTA: Why do you choose to work as a financial coach rather than adviser or financial planner?
GW: After many years working in the regulated space as an adviser, a trainer and a supervisor, I realised that while traditional financial advice serves a certain demographic very well, much broader support is needed across the UK and beyond.
Most people have not yet accumulated sufficient assets to warrant a financial adviser, yet they need some kind of help with their money. It’s not an ‘advice gap’ but an ‘education, guidance, coaching and planning’ gap.
Let’s call it a ‘financial literacy gap’.
My years working in learning, development and supervision helped me understand that while it’s easy enough to pass on knowledge, getting people to apply that knowledge, develop their skills and change habits is an entirely different ball game.
I became intrigued with the idea of blending my skills as a trainer with my knowledge as a chartered financial planner.
I wondered how I could help individuals and couples develop the skills to take control of their own finances, particularly where they might not yet be ready for a regulated financial adviser.
After training with Simonne Gnessen at Wise Monkey Financial Coaching back in 2015, I became more aware of the impact that emotions can have around money decisions and habits.
It’s this blend of practical and emotional work that makes financial coaching so fulfilling. I think my natural stance is to empower others to manage their own money, rather than for them to rely upon me as an adviser.
FTA: What’s your target demographic?
GW: I mostly work with individuals and couples in their 40s and 50s. I love working with those in mid-career who are beginning to weigh up their options, want to make the most of their time and plan for a fulfilling future.
FTA: How much of your work is pro-bono or discounted?
