Whether it’s Chaucer’s “Aprille with his shoures sote,” Millay’s “April / Comes like an idiot, babbling and strewing flowers,” or Simon & Garfunkel’s “April, come she will,” the month of April holds a special place as the coming of Spring after the long winter. Less poetic, but not without its own importance, is April’s role as Financial Literacy Month.
How financially literate are your clients? Odds are, they could use a little brushing up on the finer details, if not broader subjects. Why should they be in the know, what do they need to know, and how can you help?
Why Financial Literacy is Important
What a client needs to learn will, naturally, depend on their existing knowledge. It will also depend on their needs, circumstances, age, and goals. What’s relevant for one won’t have any importance for another. But, regardless of their age, your clients are going to be managing their money for the rest of their lives. Whether they’re retired or not, they’re still going to need to know how to keep their principal — and how to keep it working. Staying financially literate keeps this knowledge healthy throughout their elder years and fends off poor or failing instincts.
What’s Relevant to Them
As mentioned above, a client’s needs will depend heavily on their particular cohort’s needs. For the most part, your clients likely belong to the Boomer generation — that is, they’re nearing or possibly already in retirement. According to a 2022 Investopedia poll, their chief concerns are keeping online data secure, avoiding fees on their existing portfolio, and reducing debt. Relevant educational subjects for them would likely include best security practices and tax planning during retirement.
Gen X’ers, on the other hand, are mostly concerned about saving for retirement and their credit score. Their subjects would likely include proper budgeting and portfolio management. Tailoring financial lessons to the right age group ensures they’re getting the information they need in the moment.
How You Can Help
While it’s your clients’ responsibility to learn, you can certainly do your part to help them along the way! Consider the below suggestions if you don’t already have an educational program in place:
Hold an Educational Seminar
You’re likely a pro at hosting events in your area. How about making one a learning opportunity? Hosting a seminar aimed solely at educating provides an immediate and actionable resource for your community. Talk at length about specific topics like 401(k)s and estate planning to fill in the gaps of your clients’ knowledge.
Start Your Own YouTube Series
If you’re still new to media, you might be surprised to learn that YouTube is one of the most popular social media platforms today. Create weekly videos and upload them to your YouTube channel for lasting lessons and easily shareable clips. Impact’s own channel is a great reference point for what your page could look like.
Offer Online Resources
Have any loose PDFs? Don’t keep them all to yourself! Share handouts about broad topics like legacy planning and niche topics like retirement planning for divorcees with your clients as they leave an appointment. You can also offer a handout as a free download for new clients when they sign up for their first appointment. (If you don’t have any, Impact can hook you up with our extensive library of informational retirement handouts.)
Teach Younger Generations
If your clients are proud parents or grandparents, then you’re probably familiar with how their kids are doing. But do you know how they’re doing financially? Running a class about paying taxes for the first time, building credit as a teen, or understanding the stock market helps kids and grandkids build up their financial literacy early.
Remember: you’re never done learning, especially when it comes to your finances. The lessons you impart now can help your clients at any age, with any need, under every circumstance.
