Client led coaching: A random assignment evaluation of the impacts of financial coaching programs

Abstract

We undertake the first rigorous evaluation of financial coaching using a randomized controlled trial at two sites. We estimate both treatment uptake and treatment outcomes, including intent to treat estimates and complier average causal effects. Data are drawn from individual-level credit reporting firm records and baseline and follow-up surveys. Results indicate that financial coaching produces a number of significant effects on behaviors and outcomes related to money management, debt, savings, and perceptions of financial well-being. Most notably, at one site, financial coaching helped participants to increase their savings and credit scores, and at the other, it helped them to reduce their aggregate and delinquent debt.