The Importance of a Financial Education
Over the years financial education has become more important than ever before. At Simplify, we have always appreciated its importance however our active involvement in the Future of Advice programme, that entails ongoing contacts with the students, Bournemouth University, Advisers and providers, has really opened my eyes when it comes to the complexity of the problem in this space. I think many people, including qualified professionals within the financial services industry underestimate how much there is to be done to educate young people about money and financial advice in schools.
We have learnt that most of the advisers fall into the profession either through a relative/ friend or accidentally - they don’t have an alternative career choice at the time...This very rarely becomes a chosen career path. In fact, the problem is that there is no such a thing as a clear career path available at schools, universities, when it comes to Financial Advice.
The reality is that with over 15,000 out of 26,000 advisers in the UK expected to retire over the next 5 to 10 years, this ‘accidental’ fall into the profession won’t be enough to fill this gap. What is more, if we combine it with the reluctance to inexperienced, unqualified young people – this gap can only grow.
Future of Advice is an initiative seeking to help addressing this gap. The collaboration of organisations, involving Bournemouth University (BU), The Personal Finance Society (PFS), FP Wealth Management (FPWM), Strategic Solutions and Simplify Consulting was created with the clear aim of attracting young talent into the Financial Advice profession through building a sustainable, repeatable and scalable framework for an Undergraduate Financial Services Student Placement Scheme.
It is extremally rewarding to see the difference we are making through educating young people of this great career opportunity, encouraging them to make informed decisions to join the profession as well as influencing Financial Advisers to provide those opportunities.
With the onboarding process for second intake of students having started, the ever-increasing interest and engagement from all parties is truly overwhelming. We are being contacted by students, Financial Advisers and providers who are also willing to get involved in addressing this problem. The enthusiasm shared across all in the Future of Advice initiative is extremely motivating and I truly believe this is one of many steps to be taken on the journey to a better financial education.
To find out more about the Future of Advice scheme and how you can get involved click here