Can ‘money coaching’ save your finances?

Do you ever wish someone could just tell you how to be good with money? Not tell you what to do with your money – that’s different – but teach you the skills to make a budget, stick to it, and make savvy spending decisions yourself. 

This kind of personal finance training is known as ‘money coaching’. Sometimes it’s free, sometimes it costs money, but it always aims to make participants richer, or at least better informed. 

Millions of people across the UK are struggling to make everyday payments. In theory, money coaching could play a big part in helping everyone keep their finances on track. 

So how does it work, and what are the pluses and drawbacks? I went to a money coaching session in January to find out. 

'How do we stay in control of our money?'

In January 2024, more than 500 people went to church to learn about money. I was one of them.

On a Friday morning, I joined six participants and four volunteers for a money coaching workshop at Herne Hill Baptist Church. In front of each participant sat a purple workbook. ‘This is your money bible,’ said course leader Beckee Lewis (pictured outside the church above). 

The workshop – the first of four weekly sessions – was set up by the charity Christians Against Poverty (CAP) as part of its revamped money coaching program. CAP carries out work across the UK to help people get out of debt and manage their money. 

It’s a Christian organisation, but its help is available – for free – to anyone, of any or no faith. The session I attended took place in a church, but religion wasn’t mentioned at any point. (The purple workbook does include a prayer on page 10, but Beckee didn’t read it out.)

More than 1,000 people undertook training to become CAP money coaches in 2023. The charity’s renewed program features input from experts at other groups like financial inclusion organisation MoneyMatiX, anti-poverty charity Z2K, and the Financial Times. 

A video at the start of the session set up an ‘us vs them’ dynamic, with ‘us’ being people trying to keep hold of their money, and ‘them’ being big business and advertisers. 

Somewhat chirpily, the presenter told us: ‘Marketing is cleverer than ever before.

‘We’re constantly being told to give up our cash, and most of the time we don’t realise it’s happening. So how do we stay in control of our money in a world that wants to control it for us?’

• Find out more: money-saving news

'Don't be shocked if your budget doesn't balance'

The course I attended was focused around budgeting, and pitched keeping to a budget as an empowering and liberating tool. 

‘The key to budgeting is to budget and still live your life,’ Beckee told the class. The budgeting tips throughout were intended to help coursegoers spend only what they need to on essentials, and still, hopefully, have money left over for the things they like. 

‘I have a confession to make,’ Beckee told the class. ‘I’m addicted to shopping. But… I know how to budget.’

Preparing to set up a budget was the focus of this session. ‘Don’t be shocked if your budget doesn’t balance,’ Beckee said. ‘That means we know what to work on.’

Matt (pictured above), another CAP courseleader, said the course’s online budgeting tool is ‘the most important part of the course’. I tried out the tool myself, and I can see how it could be effective. 

‘It’s very comprehensive,’ Matt told me. ‘It helps people start to build a picture of what’s going on with their finances. It’s having the confidence. That sense of knowing what’s going on now, rather than things being out of control.’

The tool, available to people who sign up for the course, is essentially an interactive spreadsheet that comes pre-loaded with things you might be spending money on. It’s a helpful touch, as it means you don’t have to rack your brains to remember all your outgoings yourself. 

If the tool lists something that doesn’t apply to you, for example, the DVD rental entry that the group playfully mocked, you can just delete it. 

You can find free budgeting tools online quite easily. But the CAP tool comes with personalised guidance from a money coach to encourage you. It’s harder to stick to budgeting if there’s no one there to ask for help or check that you’re doing it right. 

• Find out more: how to budget

'It's good to have a goal'

Beckee’s relatable coaching style proved popular, and participants were optimistic as they left. 

One of them, a church youth leader and wellbeing practitioner who goes by King Cas (pictured below), thinks financial education is important. 

‘Growing up, finances were not part of the conversation, at school or at home,’ Cas said. ‘As someone who works with young people, finances are a big deal to them. 

‘I’m doing this for myself for the benefit of my financial management skills, but also I would like to be able to impart what I learn to the young people that I’m responsible for.’

Another participant told me she’d never saved money before. She works part-time and receives benefits, so every penny counts. ‘On benefits, you have to know how to save even £1 or £2,’ she said. 

This session has already changed the way she thinks about money. ‘It’s good to have a goal. Usually, I think, “My life is for today, not for tomorrow,” so I need to look ahead.’

• Find out more: best savings accounts

What's the difference between money coaching and financial advice?

Beckee kicked off the session by saying she is not a financial adviser. ‘I’m not here to give you “advice” in that way. I’m here to help you find ways you can budget better.’

There’s a reason she had to make this disclaimer. CAP money coaches are trained by the charity, but in theory, anyone could offer their services as a money coach. Financial advice, on the other hand, must be authorised and regulated by the FCA. 

So what’s the difference? Money coaching stops short of actually advising people on how to spend their money, and instead hopes to equip them with the skills they need to manage their daily finances. 

It’s also more accessible. You don’t need £1,000s in the bank to qualify. The FCA says the average advised customer has more than £150,000 of assets to their name. You may struggle to find an adviser who will work with you if you have less than £50,000. 

Money coaching red flags

Since money coaching is unregulated, it’s important to do your research before you sign up for a money coaching program. Especially if you pay for it. 

In the USA, the Federal Trade Commission has published a page of warnings about coaching scams, though these are usually pitched at people looking for business advice, not simple money management. 

The biggest red flag is, understandably, being asked to part with money. A scammer might drop this into a session as a ‘big sell’ that’s guaranteed to get returns. Don’t listen. A money coach who follows the rules won’t be telling you where to invest. 

If a regulated financial adviser guides you astray, you can seek recourse through the FCA. There’s no such route with money coaching. But if a money coach is playing by the rules, they shouldn’t be advising you on specific risky investments anyway. 

If you already have healthy finances, and you’re looking for specific recommendations about investing, you’d perhaps benefit more from financial advice. But if you don’t fall into this category, money coaching might be the better choice. 

• Find out more: how to find a financial adviser

Should I pay for money coaching?

Guidance on how to manage your money is freely available online. And you’ll find hundreds of guides here on the Which? website that could help with various aspects of your personal finances. 

If you need debt advice, charities like CAP and StepChange have free helplines. And you can use the government-backed Money Helper service for personal finance tips, too. When I tried asking for budgeting advice using its online live chat function, it connected me to someone within seconds. 

But you can pay for money coaching, too. Octopus Money is one of the bigger brands offering this service. Introductory sessions are free, then it costs £299 to develop a financial plan with a coach. 

This might sound expensive, but Octopus Money claims its customers retire on average £289,320 better off after coaching. 

For me, the free advice from CAP was effective. Even though I was just observing, not participating, I ended up cancelling two streaming subscriptions I’d accidentally let continue out of the free trial stage during the session. 

But if you’re more of a self-starter, and you’re happy to follow written or video money tips from the internet, you might not need the supervision that a money coach can offer. 

As Beckee said during the CAP course: ‘The world is out to take your money. You’ve got to do what you can to keep it.’

• Find out more: 12 ways to make and save money in 2024