The Truth is Powerful
Financial Education isn’t Optional
The United States is facing a fiscal crisis. And if you think I’m referring to the national debt or monetary policy, I’m not. Instead, I’m talking about something far more tangible. The fiscal health of more than 300 million Americans may be at risk, thanks to a lack of basic financial education. Despite being the world’s leading economy, the United States ranks 14th when it comes to financial literacy.
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And what’s worse, a 2017 study by the Global Financial Literacy Excellence Center estimated that a lack of financial education contributes to somewhere between 30-40% of wealth inequality in retirement. Financial advisors already do a great deal to improve the finances, and financial literacy, of their clients. But 2022 may be the perfect time to ramp up your focus on financial education. A triple mandate
I’m not suggesting that financial advisors focus on education for purely altruistic purposes. There are several practical and strategic reasons why you might want to start offering educational content in some form.
1. Perception. It’s possible we’re entering a bear market, or at least downshifting from the bull market that’s dominated recent memory. […]