Financial education, a gift for you under the tree?

Does Santa retire, does he have a long-term financial plan, after the wave of changes in recent years? Is he still investing the money at the North Pole? Does he have a diversified portfolio, has he attended financial education courses? How does he have enough money, even in times of inflation, for the whole list of gifts and the lighting of his dream house, the elf workshop?

I think you would be very happy if in Santa’s sack this year there was a package of financial education for you or if he brought you a coach directly to your living room!? Open the wine and let’s talk!

Everybody agrees about the need to improve financial literacy regardless of the environment we are in. A financial culture based on education made responsible is necessary to be able to follow our financial projects. Not only pursued reasonably but successfully, with a good awareness of our finances, and knowing how to manage all the resources we have.

Today we are motivated in every way to be active in the financial markets and to have the means to pay, manage quickly, save, invest, secure our money, etc. Therefore, all people must possess skills to improve their relationships with money.

Financial education improves understanding of financial concepts and products and helps individuals make decisions appropriate to their circumstances and needs. It also helps them avoid unwanted situations arising either from excessive debt or from the choice of unsuitable financial instruments for the risk profile and their level of financial literacy.

The last few years have been marked by the events derived from the COVID-19 pandemic, and the financial impact on the world economy, accentuated by the outbreak of war. Such events shaped a more complex and unstable reality. Financial professionals have had to find useful and appropriate financial solutions for their clients.

The financial adjustment has been made with greater uncertainty in the economic environment, in the financial markets, and in our own lives. The resulting crisis tested the resilience of companies but also of each individual or family facing adversity.

More than ever, the new context demands financial education, the adaptation of skills to be able to make decisions and manage personal finances.

We have digitalization as our ally, which has accelerated access to financial education and, during the pandemic, access to a financial coach.

Financial education must also be accessible in schools. This is necessary to understand basic financial concepts from an early age. We must not forget that in disadvantaged backgrounds situation, the role of the school in the process of early financial education is vital.

The growing need for financial education and coaching is due to:

Consumers are now often asked to choose between various investment and savings products. Consumers are asked to choose between different options with different interest rates and maturities. Decisions they are often not adequately educated to make. These choices can affect a consumer’s ability to buy a home, better finance their children’s education, or save for retirement, adding more pressure to his decision.

The number of institutions offering products and services can be daunting for beginners. From banks to insurance companies, brokerage firms, investment management firms, and other financial services companies compete through offers, creating confusion for the uneducated / financially unassisted consumer.

Retirement planning is an example of the increasing responsibility assumed for financial security. Past generations have depended on state pension plans to fund most of their retirement. Now consumers are involved in decision-making.

The way financial decisions for retirement were made in the past is no longer necessarily adapted to new needs, the context, or new financial products.
People have the opportunity but also the obligation to participate in various financial plans. Now they can find out how much to contribute and how to invest the money.
Social uncertainty only increases the need for individuals to save and plan adequately without major mistakes in their retirement years.

The 2022 Financial Literacy Survey found that Gen Z also plans to include cryptocurrency in their retirement plans. Here’s something you need to be prepared for as a financial coach but also as a parent.

The financial landscape is increasingly dynamic. Now, a global market has many more participants and more influencing factors. The rapidly changing environment created by technological advances such as electronic trading makes financial markets even faster but also more volatile. Taken together, these factors can cause conflicting opinions and difficulties in creating, implementing, and tracking a financial roadmap. Here’s another reason to have a financial coach by your side.

From monitoring day-to-day expenses to long-term budget forecasts, investing in a diversified portfolio, understanding dynamic financial concepts, and financial literacy are crucial. It is important to plan and save for an adequate retirement income while avoiding high levels of debt.

If the US should normally be in a better position a quarter of Americans still say in 2022 that they have no savings for retirement. Fewer than 4 in 10 of those not yet retired felt their retirement savings were not on track. More than 60% admitted they feel a low level of confidence in making retirement decisions without the help of an expert.

Low financial literacy has left Millennials—the largest part of the American workforce—unprepared for a severe financial crisis. According to TIAA Institute research, even among those who seem to have high knowledge of personal finances, only 19% answered questions about basic financial concepts correctly. More than half of the respondents do not have an emergency fund to cover expenses for at least three months. 37% are financially fragile and 44% of them say they have too much debt.
All we have to do is look at the financial crisis of 2008. We see the financial impact on the entire economy, arising from a lack of understanding of financial products.

Financial education is a problem with wide implications, so please turn to a financial coach.

Having a good financial coach provides a great advantage that comes from the value of your time transformed into specialized financial expertise. It cuts through the clutter, confusion, and conflicting information by teaching you only what’s relevant – efficiently and with a minimum of hassle.

When you tap into the expertise of your financial coach, you bridge the gap between information overload and effective action. You can turn all the work you’re already doing into meaningful financial results. Your financial education is an investment, not an expense.

Still not sure what you want for Christmas? A 1 on 1 session, financial coaching in your company, a financial investment program, access to START INVEST, financial advice over a glass of wine, and a sofa away, right in your living room?

Write to Santa and let me join you in your great financial journey. Let the help come!