“. . . Financial coaching initiatives that target the working poor have sprung up in communities across the country.”
For low-income wage earners, the idea of paying hundreds of dollars for professional financial help can seem about as far-fetched as buying a winning lotto ticket. And yet, help is available in a number of the nation’s larger cities including Chicago and New York. In most cases, the financial coaches volunteer their time and have a background in personal finance or have received financial and investment training. The participants receive specific suggestions geared to their individual situation that are designed to improve their credit score and help them build a sound financial future. According to Richard Cordray, the director of the Consumer Financial Protection Bureau, “Having a trusted, well-informed financial coach can increase your odds of financial success.”
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You may want to use the information in this blog post and the original article to
- Point out that often low wage earners don’t have the money to pay a financial coach to help them manage their finances.
- Describe different situations where the advice from a financial coach could make a difference in someone’s financial future. For example, a coach’s suggestions on how to improve someone’s credit score could lead to obtaining a credit card for emergencies or a short-term loan to bridge the gap between unemployment and employment.
- Assume you are unemployed and have exhausted your emergency fund. You are behind on monthly payments including your rent and utilities. What steps can you take to improve your financial situation?
- In the above situation, what suggestions do you think a financial coach could provide that would help you work through this difficult situation?