Visual Goal Setting and a Postcard to FutureSelf

Visual Goal Setting and a Postcard to Future-Self

Thank you to Met. Life Foundation for supporting this work

Financial coaching helps clients in many ways, but helping them to start thinking about what they want to achieve in the future is at the heart of coaching.

Financial coaching helps clients in many ways, but helping them to start thinking about what they want to achieve in the future is at the heart of coaching. is really hard.

Barriers to retention in financial coaching • Participants likely undervalue long-term goals. • Participants may not sustain their motivation as they work towards their goals. • Re-engaging clients is difficult once they drop off.

Barriers to retention in financial The greatest benefits coaching that financial coaching • Participants likely undervalue long-term goals. • Participants may not sustain their motivation as they work towards their goals. • Re-engaging clients is difficult once they drop offers often materialize in the future, which research suggests we consistently undervalue. ` Coaching participants are often focused on shorter-term problems, which makes it harder to connect with coaching.

Barriers to retention in financial coaching Participants are more • Participants likely undervalue long-term goals. • Participants may not sustain their motivation as they work towards their goals. • Re-engaging clients is difficult once they drop off. likely to stop working towards their goals if they do not feel they’re making progress towards their goals early on. `

Barriers to retention in financial coaching Participants may lose • Participants likely undervalue long-term goals. • Participants may not sustain their motivation as they work towards their goals. • Re-engaging clients is difficult once they drop off. motivation to continue over time or focus on other events that come up. Small frictions, such has having to look up the ` coach’s phone number, can make it less likely that participants will re-schedule appointments once they drop off.

Designing interventions that address these barriers to retention A visual goal setting exercise A postcard reminder

Visual goal setting exercise During the first session, participants are asked which picture best captures what they hope their future to feel like.

Postcard to future-self After the visual goal setting exercise, some clients were asked summarize the conversation on a postcard that would be sent to them if they missed a session.

Testing our interventions Clients were randomly given either just the photos or the postcard. All clients were given one of the two conditions after the pilot was rolled out.

Average number of days between sessions There were no differences between the comparison group and the visual goal setting group. We do see a nominal decrease of a little more than 4 days for participants who used the postcard. In closer analysis, though, this difference was also not statistically significant after controlling for demographic and financial factors.

Average number of sessions Financial coaching participants who went through the visual goal-setting exercise attended 6% more sessions within the first three months (p<0. 10). Participants who also used the postcard, this increase was nearly than 16% (8% more than just the visual goal setting).

Retention Just over 9% of the comparison group met were retained. Comparatively, nearly 12% of the participants who went through the visual goal setting exercise were retained. Participants who also used the postcard, this rate was even higher, with just over 13% of all participants meeting our definition of retention.

Why did the visual goal setting exercise work? A picture is worth a 1000 words”. We connect emotionally with images and photographs. The visuals encouraged participants to think about their long-term financial well-being in a more emotional and meaningful way. The photographs strengthen the connection between participants and their goals, likely increasing the value that participants think they will receive by engaging with coaching.

Why did the visual goal setting exercise work? This is a new beginning. . . washing away of old habits for a better future!!! “ I have a vision of one day sitting at the beach and feeling very relieved, while watching my two kids play on the sand. “ “ Having financial freedom means more time for pleasure and relaxation. To me, the beach represents that. “ “ “

Why did the postcard work? The postcard strengthened the visual goal setting exercise rather than working as a reminder – only 39 of 338 postcards were sent. Writing as an effective memory strategy – we are more likely to remember things we write down versus things we hear. Switching from just talking about the goals to writing may have served as cue that this is important. Participants had to take time, reflect, and give more direct attention to their thoughts. Writing down a short, 1 -2 sentence summary of why they picked the photograph they did seemed to make it more meaningful for the participants.

Effect of the intervention over time Total sessions within 3 months 3, 5 Total sessions within 6 months 3 2, 5 2 1, 5 1 1 1 0, 5 0 Comparison VGS We still see participants who went through the visual goal setting exercise attended more sessions, but the difference in total sessions is no longer statistically significant.

Number of sessions after 3 months We find that there are no statistically significant differences between the number of sessions either group attended on average after 3 months. Average sessions after 3 months 0, 8 0, 7 0, 6 0, 5 0, 4 0, 3 0, 2 0, 1 0 Total Among retained clients Comparison Treatment

Participants do not attend many sessions after 3 months generally We see the steepest rate of attrition occurs between the first and the second month. 1 0, 9 Percent of active clients The rate of attrition is mostly constant from months 3 to 9. Attrition rate among coaching clients 0, 8 0, 7 0, 6 0, 5 0, 4 0, 3 0, 2 0, 1 0 1 2 3 4 5 6 Number of months after enrollment 7 8 9

Participants do not attend many sessions after 3 months generally Some attrition was likely “displaced” but not all – the total gains outweigh the displacement. Differences in Attrition rates, VGS to Comparison 20, 0% Percentage point difference in attrition rates We see that the improvement derived from the intervention was localized almost exclusively in the second month. 15, 0% 10, 0% 5, 0% 0, 0% 1 2 3 4 5 -5, 0% -10, 0% Months 6 7 8 9

Key takeaways The visual goal setting exercise and the postcard to future-self represent effective tools for coaches to help participants to set more meaningful, long-term goals.

Key takeaways The visual goal setting exercise and the postcard to future-self represent effective tools for coaches to help participants to set more meaningful, longterm goals. Providing participants with cues that a conversation is important – by using visuals, by asking them to write something down, by giving them time for reflection – likely will increase how meaningful the session is to the participant.

Key takeaways The visual goal setting exercise and the postcard to future-self represent effective tools for coaches to help participants to set more meaningful, long-term goals. Providing participants with cues that a conversation is important – by using visuals, by asking them to write something down, by giving them time for reflection – likely will increase how meaningful the session is to the participant. Retention is built during a participant’s early engagement. If a participant engages with coaching and derives social, emotional, or financial value during the first sessions, they are more likely to sustain their engagement over time.

Thank you! Emory Nelms Senior Researcher emory. nelms@duke. edu

Next Steps Reach out to your local Program Officer for laminated picture sets See www. foc-network. org for full study Thank you!