Getting Financial Literacy on the to do list…
As we head in to April’s Financial Literacy Month (#FinLit) it is a perfect time to take a moment and talk about financial education and how mission critical it is to our industry.
Just as the Dental Association has taken on Dental Hygiene, some of the responsibility for financial education must fall to the shoulders of the experts in our industry.
As financial services professionals, it is important for us to not look at financial education as a nice to have, but a must do.
Why? A lack of financial education adversely affects our bottom line.
Countless studies tell us that the more educated individuals are on financial concepts the more likely they are to be able to utilize our products and services. Folks with good credit can open accounts with us, get loans with us, and invest in wealth management and retirement services.
The less educated individuals are about money matters, the more likely they are to have poor credit and be unable to utilize our traditional services. This leads them down a spiral of predatory services such as Pay Day lenders, high interest credit cards, and public assistance.
It is also just the right thing to do.
Money stress can negatively affect all aspects of a person’s life; from health, to work productivity, to overall feelings of security and happiness.
If we have the power to help people live happier and more productive lives, how can we not dive in?
We know that everyone’s to do list is too long, with too little time, but consider starting small with an area that your team is passionate about.
Here are a few simple ideas you can do that will have a big impact.
- Collaborate with your team to start a quarterly or monthly newsletter to your customers with useful information.
- Host a lunch and learn with a relevant topic such as credit score basics, or identity theft.
- Partner with Realtors to host a First Time Home Buyer Webinar.
- Ask local high schools if you can piggy back on Freshman Parent orientation to do a mini Thinking About Paying for College session
- Talk to local high school seniors about the importance of avoiding credit cards and other high interest debt or over-borrowing on their student loans
For the younger set, last fall Financial Brand published 5 Ways to Refresh Your Financial Education Program which is filled with tips and resources to help you look holistically at your program and figure out the right strategy for your FI.
Looking for additional ideas or what different ages need to learn? Click here for a recording of our free Preparing for FinLit Month webinar
