Advisors Embrace Financial Education for Students: Survey

Many advisors have risen to the opportunity to deliver financial education to students as a core component of their business model, according to a new survey from MoneyGuide.

The survey was conducted in mid-May among some 700 advisors in the U.S., all of whom provide financial advice.

Seventy-eight percent of respondents agreed that financial education for students is more important than ever as it can improve financial knowledge and lead to better personal finance behaviors.

Only 11% said they were neutral on the matter.

Eighty-five percent of advisors surveyed said they are more inclined to offer their time to provide financial education to students when free access to online educational content is available. Only 15% said they were not interested in doing so even if online curriculums were available.

Some two-thirds of advisors said they expect financial education to be part of their future business model, and three-quarters of the sample said they are willing to offer pro bono educational services to students. 

MoneyGuide noted that this is a clear indication that advisors are recalibrating their business model for a changing world.

Asked which financial concepts they considered most important for school-age children, across all socioeconomic and age levels, to learn and apply in financial decision-making, these were respondents’ top responses:

• Impact of debt (student loans, credit cards): 26%.
• Budgeting: 25%.
• Saving (home, car, retirement): 19%.
• Investing: 12%.
• Establishing an emergency fund: 11%.

At present, however, not enough advisors are providing financial education to students, according to MoneyGuide. Thirty-five percent of advisors in the survey said they have already started to provide financial education actively. 

But 65% indicated that they are not ready to embrace the financial education challenge.