To Build Financial Success, Reach Out

What You Need to Know

You likely understand how personal finance works.
Many people do not.
Nonprofit programs can connect them with you.

April is Financial Literacy Month, and it shines a powerful light on the importance of financial literacy.

This year’s Financial Literacy Month couldn’t be more critical, as the nation finds itself in the throes of a prolonged rising interest rate and high inflation environment while we all continue to monitor the situation playing out in the banking sector.

For many, just figuring out how to pay the bills is a constant battle.

Without a foundational understanding of financial systems, products and positive habits, it can be overwhelming.

However, for those of us who were fortunate enough to have learned critical financial skills early, there is an opportunity to share these skills with those in need.

Investing in personal relationships can have a powerful impact on an individual’s financial trajectory, as a volunteer yourself or through a nonprofit financial counselor or financial professional.

You could teach.

At my company, Jackson, we know that understanding how money works and having the confidence to make sound financial decisions are critical for success.

There may be no better way to invest in a young person than through volunteering your time to ignite a spark for learning basic financial education that leads to a lifetime of strong financial habits.

While many schools have adopted financial education curriculums, business and community volunteers can help bring these topics to life and root complex concepts within their own personal experience.

With support from nonprofits like Junior Achievement (JA) — with local chapters nationwide, and many decades of experience with training business professionals to teach K-12 financial education — volunteers are uniquely equipped to share their expertise in the classroom.

Jackson associates who volunteer to teach JA programs are consistently energized from helping to influence a generation of students.

Several financial services companies are taking an active role in these efforts, including Charles Schwab.

Charles Schwab hosted a week-long volunteer initiative last April. A quarter of its 32,500 U.S. employees volunteered at about 400 nonprofits, with many serving as volunteer financial instructors.

You could coach.

Another way to invest in someone is through financial coaching, which empowers clients to reach self-defined financial goals.

Often, that means building a budget and having an accountability partner to help them stick with it.

A financial coach has the expertise to negotiate with creditors and build a strategy to reduce debt, create savings goals and improve credit.

Building financial literacy can build financial services business.

For financial professionals, one of the most effective ways to support a thriving practice is by helping to solve our country’s financial illiteracy problem.

It may seem counterintuitive that a better understanding of personal finance can increase the demand for financial services, but this is indeed the case.

In fact, recent research published in The Journal of the Economics of Ageing found that more financially literate people are likely to obtain financial advice from professionals over family members and friends, and poor financial literacy can actually be a barrier to receiving professional financial advice.

Many individuals could benefit from professional financial advice but might not have sufficient income or assets to pay for it.

Financial professionals who give back through pro bono planning are not only rewarded through the giving of their time and talents, but also with the potential that those individuals will be more inclined to work with them in a professional manner down the road.

In addition to providing a valuable service to the community, pro bono planning can serve as a meaningful activity for financial professionals to develop their skills and ultimately grow the financial planning profession.

Think of the big picture.

By giving back as volunteers, supporting financial coaching programs through nonprofits, and with the help of financial professionals, investing in personal relationships can help alleviate financial illiteracy across the country and ensure more Americans can make smart financial decisions in the future.

This work strengthens individuals, families and entire communities.