Educating clients may be one of the most important things you do as an advisor. Not only is it the right thing to do, it helps you stand out and can increase your value in the eyes of your clients.
But when it comes to client education, the key issue of kids and money is often overlooked.
Parents and grandparents desperately need tools to teach today's children about making sound financial choices. That is why helping clients talk to their children and grandchildren about money has the potential to help you build stronger relationships and truly help your clients.
Too many financial advisors focus primarily on investing, ignoring their clients' broader planning concerns. Helping clients effectively teach their children about managing money shows that you are a different kind of advisor, focused on a comprehensive and caring approach.
This is also an excellent way to build connections with multiple generations of family and to enhance your relationships with clients by connecting with them on a deeper, more emotional level.
Financial results come from the small decisions we make and actions we take each day compounded over time. Parents need to help their children learn to prioritize and make good financial choices, as well as help them learn from their mistakes, so they can lead happy, accomplished lives.
Here are some tips for you to share with clients to help them teach their children (especially those between the critical ages of 4 and 13) to make better financial decisions.
1. Commit to being your child's no.1 financial teacher.
Parents are the most influential financial role models their children will ever have. However, the majority of parents don't feel confident teaching their children about finances and often avoid the topic or lie about it. Parents must realize that no one else will embrace this important role to become their children's primary financial teacher.
2. Start early in childhood.
From the time they are toddlers, children begin learning about money through observations and modelling -- whether their parents are proactively teaching financial lessons or not. Getting an early start is critical to developing good self-control with spending habits, which is a key factor in future financial success.