Cindy Couyoumjian Explains How Advisors Are Taking Steps to Help Better Financial Literacy in the USA
For many people, having a conversation about money is nearly as difficult as learning how to manage it. In our society, discussing money is taboo, which only serves as a roadblock when it comes to financial literacy. That said, while the topic of money may be hard to swallow around your friends or family members, there is someone you can rely on to make this conversation easier: a financial advisor. The basic purpose of advisors is to improve the financial literacy of their clients. As a Certified Financial Planner and the CEO of private financial planning firm Cinergy Financial, Cindy Couyoumjian has firsthand experience providing her clients with the tools they need to become financially literate. She believes that the primary role of advisors is to educate; to help clients become more knowledgeable about the world of finance so that they feel empowered to make good decisions about their financial futures. Continue reading for a list of reasons why financial advisors are key in improving financial literacy in the United States.
Financial Advisors Create A Safe Space in Which to Discuss Money
As we’ve established, talking about money is no walk in the park. Luckily, financial advisors are here to make this process easier. Cindy Couyoumjian claims that the first step for any advisor should always be to create a safe, comforting environment for the client. This type of environment facilitates trust, which will prevent the client from feeling any shame or judgment when discussing their financial situation. In order to get to this place, many advisors will ask a series of questions relating to their spending patterns and overall feelings towards money. For example: Are there any areas of finance or investing that you know a little bit about, or are there any areas you’d like to learn more about? Has there been someone in your life, whether a parent, grandparent, or friend who has taught you about managing your finances? How much do you think your emotions impact your financial decisions? Asking such questions will ease any tension or nerves the client might be feeling and serve as a first step in the path to financial literacy.
Financial Advisors Help with the Non-Technical Side of Finance
Financial advisors help give finance a face and exist to explain the non-technical components of finance, just as much as the technical components. Financial Planner Cindy Couyoumjian emphasizes that the human side of finance is key when it comes to improving financial literacy. By speaking with you and asking insightful questions, an advisor can help you realize the emotional and behavioral aspects of money management. Financial planners are well trained in how to analyze emotional data. This emotional intel is just as important as the financial data when it comes to developing a strategy that will work for you. One of the best lessons an advisor can teach is how to communicate your financial needs and understand how your emotions influence financial decisions.
Financial Advisors Act as Role Models
Having people in your life who know about finance and make healthy financial decisions is crucial when it comes to improving your own financial literacy. That is why financial advisors can act as role models in a community. They can use their knowledge of financial management to raise awareness and help reverse the lack of financial literacy that exists around them. It could be as simple as starting a conversation about finance with a friend, or it could take the form of volunteering at a local school and educating young people on student loan payback strategies or monthly budgeting.
Whatever your reason, Cindy Couyoumjian wholeheartedly believes that financial planners are invaluable when it comes to increasing financial literacy in the USA and that they should be used more liberally by the populace.