Financial professionals should also be teachers

It’s a great feeling to create a financial solution that will help a client retire better. But we have another important role, and that’s helping our clients increase their financial literacy. April is Financial Literacy Month, and we can help increase financial literacy by sharing information, listening actively, avoiding jargon and making sure clients understand what we are explaining. Being an advocate for financial education and wellness can help build client trust and can even create new opportunities in our communities.

Financial literacy numbers

?Many U.S. consumers have limited financial literacy and struggle to navigate basic money matters like picking a credit card, buying a car or refinancing their mortgage. Clients with limited financial knowledge may also lack the confidence to make sound decisions about managing their wealth or planning for the future.

Keep in mind:

• Over 13 percent of adults admit they lack confidence in their knowledge of personal finance
• Fortunately, more than 3 in 4 people agree that they could benefit from a professional’s insights and answers to everyday financial questions

You are one of your clients’ greatest resources, and you can help them sharpen their financial know-how while giving them a skillset that can benefit them for the rest of their lives.

 What you can do to help

Share educational materials that explain financial topics or product solutions in clear and concise language.

• Certain subjects can appear complicated at first, but when broken down using everyday language, clients may be more likely to understand and retain the information.
• Going through these resources together gives you the opportunity to offer clarification, answer questions and discuss their personal needs and goals.

 Listen closely to your clients’ concerns to help you pinpoint where they may need more information. It’s a great opportunity to bust misconceptions and boost understanding. It’s a valuable community service that’s also an excellent opportunity to connect with potential clients.

• Consider sending links to helpful resources in regular emails or posting to social media
• Think about hosting non-product virtual events or partnering with local organizations to speak about financial topics

 As a financial professional, you often wear many hats. While being a teacher may not be a role you immediately think of when describing yourself, helping to educate your clients is an important part of the job. Sharing your knowledge with others is not only empowering for them, but can be quite satisfying for you as well. As financial literacy increases, so does financial confidence, leading to better decision making and an openness to trust your professional insight and the value of your services.