Nearly half of Brits expect financial struggles in 2025, according to a new survey.
The insurer Go.Compare found 47% of women and 43% of men are bracing for a tough financial year ahead, with high living costs (46%) and a lack of savings (30%) topping their concerns.
For people feeling the pinch, financial coaching could provide a lifeline, offering practical tools to budget better, save more, and regain control over their money. Read on to find out how financial coaching works and whether it might be right for you.
What is financial coaching?
A financial coach can be like a personal trainer for your money, helping you strengthen your financial habits and whip your bank account into shape.
For example, if you have a major life event coming up, such as starting a family or saving for your first home, a financial coach can help you:
- Create a step-by-step plan to save for your goals.
- Set up a budget to manage your money and avoid overspending.
- Understand your options for big expenses like a mortgage or childcare.
- Stay on track and adjust your plan as your needs change.
How does financial coaching work?
The exact ways you work with a financial coach will differ depending on the expert you choose. However, these steps will typically be followed:
- Identifying your goals: in the first meeting, you meet with a coach to discuss your money situation and goals, such as saving for retirement, budgeting your spending, or paying off debt.
- Creating a plan: your coach makes a step-by-step plan tailored to your goals and teaches you how to manage your money effectively.
- Ongoing support: through regular sessions (online or in-person), the coach checks your progress, answers questions, and helps adjust the plan if necessary.
- Skills for life: your coach teaches you practical money habits so you can control your finances even after the coaching ends.
Find out more: 11 smart financial moves to kick-start 2025
Are financial advisers and financial coaches different?
Yes, they serve different purposes. A financial adviser usually offers expertise and strategies on investing, pensions, and insurance – you might think of it as a step up from coaching. Financial advisers are regulated by the Financial Conduct Authority (FCA) in the UK.
According to the FCA, the average advised customer has over £150,000 of assets under advice and only 25% of financial advisers are willing to work with clients with less than £50,000.
A financial coach, on the other hand, aims to teach you how to manage your money better. They focus on things such as budgeting, saving, and paying off debt. Financial coaching is open to everyone, no matter how much money you have.
Money coaching is unregulated, so it’s important to do your homework before signing up, especially if it involves paying a fee.
Unlike FCA-regulated financial advisers, money coaches don’t offer the same protections, but if they’re playing by the rules, they shouldn’t be recommending risky investments in the first place.
- Find out more: how to find a financial adviser
What are the costs and commitments?
The cost of financial coaching depends on the coach and the type of support they offer.
On average, you’re looking at around £200–£300 a year. Many coaches start with a free consultation and then charge a fixed yearly fee. Some also offer a pay-as-you-go option, where a session could cost about £50–£100.
Octopus Money is one of the bigger brands offering money coaching and is currently offering Which? members a discount on its services. Introductory sessions are free, then it costs £299 (or £150 for Which? members) 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.
Some people work with their coach regularly, like once a month, while others just book a session when they need help. Either way, you’ll need to put in some time and effort to stick to your plan and build better money habits.
It’s worth noting that some charitable organisations offer free money coaching advice, for example, Christians Against Poverty (CAP). CAP carries out work across the UK to help people get out of debt and manage their money. For debt advice, charities like CAP and StepChange have free helplines.
Tips for finding a good financial coach
Finding a good financial coach doesn’t have to be complicated. Here’s how you can start:
- Check their background: look for coaches with relevant training and experience helping people in situations like yours.
- Read reviews: check their website or social media for feedback from previous clients to see if they’re reliable.
- Understand their focus: make sure their coaching style matches what you need. Some focus on budgeting, while others offer broader money management tips.
- Watch for red flags: avoid anyone who guarantees financial returns or pushes investments.
- Ask about costs: make sure pricing is clear. Many coaches offer free consultations and charge either a yearly fee or per session.
You can search on platforms such as LinkedIn, VouchedFor or check organisations such as Christians Against Poverty. Asking friends or family for recommendations is also a good way to find someone trustworthy.
- Find out more: 25 ways to make and save money in 2025
Is financial coaching right for you?
Whether financial coaching is the right fit for you depends on your personal situation and goals. If you’re looking to get better at managing your money, planning for big life changes, or building confidence in your financial decisions, it could be worth a shot.
Here are some real-life case studies Octopus Money shared with Which? on how financial coaching has helped others:
- Patricia, a first-time investor, overcame her fear of investing with the help of coaching. Starting small, she grew her investment pot from £5,000 to £22,000 and learned to shop around for better financial opportunities. She also fully funded her wedding and is now working towards paying off her mortgage early.
- Harry, a software developer, used coaching to buy his first home. His coach guided him through using lifetime Isas, connected him with a mortgage broker, and helped him understand the impact of inflation. Harry says it gave him clarity and peace of mind during a stressful time.
- Charlotte, an in-house lawyer, worked with her coach while buying her first property. She appreciated the tailored advice, like deciding between increasing her mortgage payments or saving in a high-interest account.
