In this first of a four-part series, Save with SPP talks to Janet Gray, CFP of Money Coaches Canada about what a money coach does and how they can help

Fresh from an interview with CTV Ottawa on record-high credit card debt, Janet Gray of Money Coaches Canada says that while money advice is a key part of her role, there is more to being a money coach than setting up budgets and financial plans.

“Yes, we coach people about money,” she begins. “But what’s a bit unusual about being a money coach is that unlike investment, insurance companies or most other financial planners, we aren’t product focused.” Money Coaches Canada doesn’t sell any investment or insurance products — their purpose is to offer advice and coaching, she explains. All the coaches are certified financial planners (CFP), she adds.

“We are CFP professionals who talk to you about how to optimally manage your money — taking the worry out of it,” she explains. “We help people to see the big picture — here’s your money in black and white, here are systems to manage your cash flow, your taxes. And assist in making your life plans like retirement or estate wishes a reality” And while money coaches can help you manage debts, they are not credit counsellors, she adds.

The money coach, she adds, is someone who can provide “a safe and non-judgmental space to have conversations about managing your money, and how to make things better.” And while getting people to understand their personal cash flow — “where is your money going” — is important, the goal is to have more of a relationship about money and life decisions between coach and client.

Money coaches can “aid in key life decisions — like having your daughter’s wedding coming up or a desired retirement lifestyle, and how to get there financially.” She notes that if you aren’t aware of where your money is currently going, it’s more difficult to save.

Some of the clients she helps already have plans, but no longer have an advisor, so things get stalled. A coach can get them back on track “to implement their plans, despite all the potholes that keep coming at us in life. It’s an ongoing lifetime relationship, not a `one and done’ thing,” she explains.

A key result of coaching is building people’s financial literacy, Gray explains. Beyond the basics of cash flow and financial plan, coaches find they spend “a lot more (time) on financial literacy; we are educating people all the time.”

“There is great information available that they hopefully can share with their kids — do they know about Tax Free Savings Accounts, and when they can be opened? Do they understand the importance of having a power of attorney document? These are things to know that can help them support their kids’ financial literacy as well” she explains.

Money, she says, is a topic many people are uncomfortable talking about. Years ago, she jokes, people didn’t like talking about sex — but now, it’s money and finances.

“I was on CTV Ottawa today talking about the fact that the average credit card debt in Canada is around $21,000. But we’ve seen clients with triple that debt or more. And it’s not the credit card interest rates that are the problem — they haven’t changed much. It’s the fact that everything else is going up — rent, mortgage interest, gas, and groceries. So there is less left over to pay off credit card debt.”

Gray has been a CFP for 23 years and helping Money Coaches Canada clients for about nine years. “It becomes like a relationship, and I also benefit from those ongoing relationships. I get to know these people and can counsel them for everything — financial decisions, are you still on track. And when you get close to people, and know them, they have someone to talk to about their finances in plain English.” Trust builds up and the relationships tend to grow over the longer term, she says.

She had one client who, facing terminal cancer, wanted to make sure his wife had a trusted advisor to talk to about money after he was gone.

“That’s a key point — it’s not just about money, it’s about lifestyle,” she concludes.

In part two of our four-part series, we’ll ask Janet Gray about one of our favourite topics — saving. Watch for part two next month.

What’s 36 years old, has more than 33,000 members, and manages more than $700 million in retirement assets? Why it’s the Saskatchewan Pension Plan! Find out what SPP can do for you when it comes to saving for retirement — check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

As the New Year begins, Save with SPP decided to have a look around for some new and different resolutions on that perennial topic, savings.

At the Michelle is Money Hungry blog we learn a good one — simplify your budget.

“It’s my personal belief that most budgets may be too complicated and that’s why it’s hard for people to keep track of everything,” she writes. Consider using an app like Personal Capital, Mint or You Need a Budget, she continues.   These tools “help you identify leaks in your budget,” she notes — like her personal one, which is coffee shop visits.

We like her thinking here — unless your budget is easy to use, and doesn’t require a ton of time to get through, you probably won’t follow it. Fix it with something easier.

The Street offers up another one we haven’t seen before — make your money goals in 2023 “cyclical.”

The article explains that most people make “linear” financial goals, such as “I need to save a million dollars for retirement,” then plunk down a couple hundred dollars a month, thinking they are now on track. “Every time you contribute a couple hundred dollars, you’re using a spoon to empty the ocean.” You are falling behind on your target without realizing it, the article explains.

By contrast, a “cyclical” approach “means paying less attention to long-term goals and instead focusing on each “cycle” for its own sake, the article tells us.

“For example, say you set a goal to save [a certain amount from] each paycheque,” Australian academic Leona Tam states in the article. “If you didn’t put away [that amount] from your last paycheque, you need to try to catch up immediately in your next paycheque. Catching up means you need to put up double the amount. That’s quite hard.” In other words, going cyclical makes it harder on you if you fall behind, which may make the approach succeed.

OK, so we have simpler budgeting and a “cyclical” approach to saving. What else is new in the resolution department?

The Life and a Budget blog has another fairly unique one — “do one frugal thing a day no matter how small.”

“No matter how small it is, making one single decision every day can change your finances,” the blog explains. Examples include setting a food budget, creating a meal plan and using it for shopping, eating at home, bagging your lunch and using up leftovers. Trying to do this all the time might seem hard, but we like the idea of doing only one such good financial deed per day — there’s more chance of success.

Finally, the Positively Frugal blog suggests we all need to “develop a positive mindset” about our finances.

“Your self-talk can have a big impact on your money aspirations and your overall outlook on life,” the blog explains. “If you find that you have negativity swirling around your head space, make a new year’s financial resolution to interject positive affirmations for money into your daily routine.”

We’ll throw in one more that we learned from a recent CTV Ottawa interview with an 111-year-old veteran. Asked what advice he would give those of us hoping to live as long a life, he said that first, you need to be happy and kind, but also that “if you have a problem, fix it.”

Don’t stress yourself out worrying about things like a money problem — focus on solving it and moving past it, the gentleman said.

That’s a good thought as 2023 begins. We wish everyone a Happy New Year and a prosperous year ahead!

If your problem is not having a retirement savings program at work, a fix is in your reach. The Saskatchewan Pension Plan is an open defined contribution pension plan that anyone with registered retirement savings plan room can join. They’ll invest your savings at a very low fee, grow it into a retirement nest egg, and help you turn those savings into income down the road. Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!