Though the terms “financial coaching” and “financial consulting” are often used interchangeably, they serve different functions and cater to different client needs. Understanding the distinction helps professionals offer the right services — and helps clients understand what they’re paying for.

Financial consulting is typically goal-oriented and analytical. Consultants provide expert advice on complex topics like tax strategies, investments, retirement planning, or business finance. They often prepare models, conduct audits, or manage portfolios. Their role is to solve specific financial problems or provide technical guidance for decision-making.

Financial coaching, on the other hand, is behavior-focused and educational. Coaches help clients build healthy money habits, create budgets, and develop financial confidence. They act more like mentors than strategists, empowering clients to make their own decisions by teaching them how to manage their money.

While consultants may say, “Here’s what you should do,” a coach is more likely to ask, “What do you think is holding you back financially?” Coaches spend more time on mindset and motivation, while consultants dive into numbers and analysis.

Some professionals offer hybrid services, combining strategic advice with accountability coaching. This can be especially helpful for clients who are financially literate but struggle with discipline.

Choosing the right approach depends on the client’s current situation. A business owner with tax questions needs a consultant; a recent graduate learning how to budget may benefit more from a coach.

Understanding — and clearly communicating — the difference creates better outcomes for both professionals and clients.