At Gresham, one of the main objectives is for our financial advisers to arm our clients with the knowledge to ‘control their wealth with confidence’. The results of a 2022 study by the Investing and Saving Alliance (TISA) and market researchers, Appinio, highlighted the lack of understanding of the financial world which exists in the UK, therefore caught our eye. Results from the study showed that 70% of participants did not believe that school prepared them well for financial life.
Financial education – or lack of it – can act as a significant determiner when it comes to financial decision making. For many, this will impact how young people budget and how they prepare for retirement, with many never having heard of workplace pension initiatives, for example. Many employers are now finding they need to take on a share of the burden by assisting their staff through training programmes to build up their financial education.
Financial resilience is becoming an increasingly important concept for any individual or business to understand. It is the ability to cope with financial shocks, protect and grow income, and safeguard your assets against unexpected financial shocks. For many, financial resilience will come from having understanding, confidence and, crucially, advice to make the best financial decisions.
Just as obtaining financial knowledge is vital to taking control of your financial position, the advice and guidance of a financial adviser can be invaluable. A good financial adviser will be able to equip investors with the right tools and information to realise their financial goals. They can provide the advice and guidance needed to improve your financial resilience, allowing you to cope with financial shocks more effectively.
Few of us will go through life without having to navigate everyday financial hurdles such as budget planning, credit scores, mortgage applications and long-term financial planning. This is why TISA is pushing for a more pro-active approach from Government towards financial literacy, ideally from a young age within our school curriculum.
Similarly, this kind of information needs to be accessible to people throughout all stages of their life, otherwise we cannot expect people to be able to get through economically harsh periods such as the current cost-of-living crisis.
For those financially stable with income and assets, it is crucial to know how to optimise your position and prepare for various outcomes. This is where we can play a key role as financial advisers; arming investors with the right tools and information to realise their financial goals.
View the TISA report here