Only 42% of young Australians feel confident or very confident managing their money – which creates a big opportunity for you to empower and inform them towards a financially free future.
When giving advice or creating an investment strategy for your clients, there’s no such thing as a ‘one size fits all’ approach. But when it comes to young Australians, there are certain things you can do to engage with this audience and help set them up to make better financial decisions, now and in the future.
Recent statistics have shown that younger Australians need more encouragement when it comes to improving their financial literacy and becoming empowered to make more informed financial decisions.
According to the government’s National Financial Capability Strategy, 17% of Australians are “not very confident” or “not confident at all” about their ability to hit a financial goal. But young Australians struggle the most, with only 42% reporting that they felt confident or very confident managing their money.
In response, ASIC has recently released a new website to help boost financial literacy in the next generation of adults. Get Moneysmart is designed to help young people feel more confident with how they use money on a daily basis, to better prepare them for more complex and significant financial decisions down the track.
This new resource serves as a timely reminder for advisers who may be considering how you can support younger generations. Knowing the compounding value when a young person invests in the market with a long period ahead of them until retirement, it’s clear that smart, strategic financial advice can make a huge impact on a person’s wealth creation journey.
So how can you engage with this audience to help them make better financial decisions?
1. Reach out to the children of existing clients
Existing clients already know – and are benefitting from – your expertise and advice. By establishing a relationship with their children, you can expand into a demographic that is likely to ensure the future of your business in the decades to come.
2. Demonstrate age-appropriate investment strategies
In order to help your clients get the most out of their super it’s ideal for their investment strategy to evolve in alignment with their age. Demonstrate to new and prospective clients that you can achieve genuine results, leveraging things like Aware Super’s MySuper Lifecycle approach, where investments change to suit the fund member’s age.
3. Consider offering a discounted service to younger clients
Many younger people can't afford the cost of financial advice early on. If you’re prepared to offer a discounted rate so you can begin servicing this group, the long-term rewards could see you capture their business and build loyalty that translates to long-term profitable clients.
With a clear need in the community for young Australians to improve their financial fitness, and an equally clear opportunity for financial advisers to expand their business, it’s important to consider how you can capture younger clients early on. With the right strategy, you could engage with them now and secure life-long clients.
Aware Super’s MyCycle approach helps to boost super when the fund member is younger, and better manage the impact of risk on investments as they get closer to retirement. Contact us today on 1300 650 873 or visit www.aware.com.au to learn more.