Navigating adulthood is tough, especially when it comes to money matters. It kind of feels like we missed a class or two on all things finance…and now we are a little bit clueless…
In a world where every financial decision carries weight, having a few clues will make a world of difference down the line. But don’t just take our word - I sat down with Alexa, a fellow twenty-something, to chat about her journey seeking financial guidance. Here's her take on why it's crucial for young adults to unchaos their chaos.
1. What was your initial perception of financial planners before seeking advice?
It sounded like a foreign service only certain people could afford/find value in e.g people who need to manage businesses, people who have mortgages, loans etc. - I didn't think a financial planner could provide me with lifestyle advice, I thought I needed to have multiple assets and be a wealthy business owner.
2. Can you describe any barriers or hesitations you had that prevented you from seeking financial advice sooner?
I didn't fully understand what it is they could help me with and I didn't think it 'applied to me'. Also, I didn't know WHO to turn to - finding someone you trust in regards to financial advice can be a questionable thing to do. Especially being a financially inexperienced young person, sometimes I'm worried I'll be exploited in areas I don't fully understand - it's like finding a great mechanic, how do I know they're not ripping me off in services I don't need because I don't fully understand the concepts they're talking about? I also didn't know how much it was going to cost but know they can be expensive, so I questioned whether it was something I truly needed.
3. What motivated or prompted you to finally seek advice from a financial planner?
I met my financial planner through a family relation. Hearing casually about what he offered and knowing I could trust him, prompted me to ask for advice. Prior to the appointment, I actually did research and began listing questions I had always had. I wanted to learn more and became inspired to get advice in the areas I was interested in.
4. How did your perception of financial planners change after seeking advice?
So much! I realised they're not just for the high flying business person! It really helped me look at my finances differently, want to take action and make changes that could set me up for success in the long run. I became more aware of my financial situation and it inspired me to continue wanting to learn more.
5. Were there any specific aspects of the financial planning process that surprised you or stood out to you?
I really liked how he began wanting to get to know me first. It wasn't about the numbers or changing anything straight away, he began getting to know me and so he could understand my financial position and how he could best help. I liked that personal touch, it made me more comfortable. He didn't use fancy financial jargon, we talked about why I was seeking the advice - what exactly was I looking for, how I currently felt about my finances... then, any questions I had.
6. How do you feel about the value that financial planners provide after your experience?
Immense value. I always believed that money wasn't the end all and be all, I could use it how I wished. But I think that's because I didn't feel in control of it. I see that financial planners help you gain confidence in finance and help you become in control so you can make your money work for you. My financial awareness has increased so much and now I think so differently about my finances. As mentioned above, seeing a mechanic is scary, especially finding one that you trust - but we know it's a service we have to do to ensure our car performs how it should. A financial planner is a finance mechanic, helping you service an important area of your life to ensure your money performs how it should.
7. Did the advice you received align with your expectations or did it challenge any preconceived notions you had?
It surpassed my expectations as I received advice about small changes that could really help in the long run - that I wasn't aware I could change or be in control of. Again, challenged my existing perspective that I had to run a business or have a family to seek advice. I got advice that worked for me, it was tailored to my lifestyle and needs.
8. How do you think financial planners could better reach and support young people like yourself?
Social media, especially tik tok. I hate to assume that many mature business owners don't think it's relevant to make tik toks - but I think that's exactly how they can reach the young people who need the advice the most. When you cut through all the silliness and dance trends, you'll find cooking tutorials, holiday to do lists, self development advice, fitness advice, Excel how to's - for the younger generation, we find the answers we're looking for on social media. Finance advice from a certified professional would do so well and I know the young people are eager to see it. (See Mark Tilbury on Youtube who has 2 million+ subscribers from his finance advice... he proves there's a market for it and he's not even a financial advisor)
9. Do you have any recommendations for improving the accessibility or approachability of financial planning services for young adults?
Something I've organised with my financial advisor is to get a bunch of friends together and have a group session. This means a discounted rate and we all get to have our broader questions answered. It's a great introduction into financial advice. Additionally, if the young adults won't seek advice themselves, I guess you have to take the general advice to them - this is where social media is perfect, as mentioned above.
10. Looking back, do you wish you had sought financial advice earlier, and if so, why?
I do. It's those uni-student days where you tend to spend, spend, spend and don't see the necessity about understanding your finances. My perspective sounded something like 'soon I'll have a full time job and won't have to worry about finances again'... wrong! I wish I knew how to gain control of my finances in my early twenties, because it would mean a different outcome for me. Imagine the interest and investments I would have now if I had started 5 years ago!
Alexa’s journey highlights the transformative power of seeking financial advice, proving that it's never too early to take control of your financial future. Whether you're a recent grad or a seasoned professional, the guidance of a financial planner can set you on the path to financial freedom and success.
Rancol Pty Ltd as Trustee for The Rando Family Trust T/as Rando & Associates is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd. ABN 61 094 529 987. Australian Financial Services Licensee, Licence No: 244252. Level 3 “IOOF Building” – Level 5, 95 Pitt St, Sydney NSW 2000 02 9248 0422
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