"We need help" – 17-24 year olds admit they're under-informed on personal finance.
Some financial advisors may have felt threatened by the ever-growing availability of online advice but a recent poll suggests their jobs are safe as the vast majority of post-secondary students admit they need help.
In the latest RBC Student Finances Poll, 87% of post-secondary students reported they still have a lot to learn about managing finances and 41% wished they knew more about budgeting. Of the parents asked, 59% said they too wished their children appreciated the importance of saving and early planning.
"Students say they have a lot to learn about managing their finances [yet] credit knowledge remains a bit of a mystery to students and parents alike," said Melissa Jarman, director, Student Banking, Royal Bank of Canada.
The poll, conducted by Ipsos Reid, questioned 1,180 students aged 17-24 and 971 parents of students in post-secondary school. The data collected showed that, overall, students were less knowledgeable than parents but some parents did not fare well either.
The results indicate that financial advisors continue to provide a valuable and much-needed service, regardless of age or circumstance. "Speaking to a financial advisor about managing finances, including credit, is an important step for anyone," said Jarman.
Students also expressed their concerns about paying back their student loans, the overall shape of their finances upon graduation and the possibility of unexpected financial needs in the future.
The information provided by this poll could be of great value to any financial advisors who wish to attract more young clients. Focusing on these three key concerns will help firms target millennial clients who may provide long-term income for a business.