Financial Capability Scale (FCS)

The University of Wisconsin’s Center for Financial Security developed the Financial Capability Scale (FCS) with the support and Annie E. Casey Foundation in 2011 with the goal of developing a standardized client financial capability scale that could be used in the field with clients as well as in evaluation studies. In 2013, the Center conducted field testing to establish the reliability and validity of the scale. The FCS has been shown to be associated with credit use, credit scores, savings and financial attitudes. Although designed for financial coaching, the FCS can be applied to other financial capability services and programs

The Application of Coaching Techniques to Financial Issues

<p>Financial coaching is emerging as a distinct approach to building personal financial capability. However, the term <em>financial coaching</em> refers to a wide array of interventions. This article reviews the literature in order to define financial coaching. Financial coaching includes helping individuals define financial goals, develop plans of action, and implement steps toward their goals. The coaching approach is designed to help people develop and sustain positive financial behaviors. This article also presents findings from three financial coaching field studies; the results suggest that working with a financial coach increases clients’ ability to focus on their financial goals and engage in positive financial behaviors. Despite these beneficial outcomes, the coaching field faces several challenges including a lack of practice standards and consistent outcomes measures.</p&gt