Improved Financial Literacy – where do we start?

Twice last week I was asked by interested candidates as to the specific nature of society’s need for improved financial literacy and our company’s contribution – the altruistic contribution.  Do we honour ‘our ten commandments’?  A fair question from young aspiring financial advisers, seriously looking to initiate a career.  A role for which they feel compassion for their client and desire a positive outcome for themselves, short and long term.

I know what prompted the question, the same reason Bernie Sanders is receiving such support in his competition for the Democratic party candidacy in US.  The majority of young people are influenced in the main through social media, not through main stream media.  I say Hallelujah to that, except there are provisos.  Socialist principles appeal in theory and struggle in practice.  Education is not free, someone pays.  Healthcare takes personal and social responsibility.  Productivity leads to great consumer gains but often at the cost of status quo employment – some poor soul’s lives are disrupted or decimated by technological advancement.  Owning a home isn’t a right – the opportunity is a right.  Profit is not bad, it allows people to be employed and services to be advanced.

But these were not the real question of the applicants.  They wanted to know what we did in schools to educate the kids.  On the surface – a fair question.  The problem is twofold.  Firstly, all schools have a curriculum for which they are responsible.  I wouldn’t say external educators are ‘unwelcome’ (and it’s not for want of trying) but

1. you are up against a profession whose own biases can be somewhat anti-business; and
2. if the ‘external’ educators are proposing ‘class advice’ or general ‘information’ are parents going to agree to their children’s knowledge being directed by ‘self-serving’ contributors (in the name of financial education, even at no cost).

We have tried at both secondary school and Wananga level

Secondly, we know from many years of experience that the most important teacher is Mum and Dad.  That’s who the kids take instruction from or whom provide the predominant mentoring.

So, we’ve written a book.  ‘An ABC of Financial Literacy’ and created text, pictures and colour to appeal to all demographics.  Investment tips, 26 investment and financial points of interest and colour pictures which link to the message in the extended texts.  We also provide a one liner – sufficient to provide interest or intrigue.  We intend to launch at our celebratory party.  Our 20^th birthday party for clients and invited guests to be held in July – this year.

We also understand that kids go online – they will gather information through free text and either – attempt to decipher and action themselves or seek online feedback.  So the future of the advice industry is dramatically changing.  Unless we adapt we will go the way of rural farm workers, factory manufacturers, or the print media, railway workers and telecommunications personnel.  Consumers will demand less cost, instant information and easily understood visuals – they don’t necessarily want to spend time reading, comprehending or deciding.

That sounds and appears like a rather superficial means of seeking or taking instruction to me – but then again I’m not necessarily ‘the market’.  My biases and likes are linked to relationships, advice and knowledge, not transactions, information and solutions.

On Friday we looked at partnering with PocketSmith.  An online app provider.  Someone and somehow to provide an appeal for budget control with direct bank links.  If it works for people willing to pay a small monthly fee, why not?  They’ve got 120,000 clients worldwide – better than we have done.  Not bad for a little start up from Dunedin.

So in answering the question of how we propose to articulate and enable our ‘purpose’ – the answer is never one dimensional.  There is no one right answer:

• We favour options and multiple providers for our client’s product needs
• We provide varying levels of advice in age, experience and qualification
• We use online, written and face to face communication
• We are open to changing needs, circumstances and desires

Ultimately we want to be the catalyst ‘To Smooth the Road’ for all ages.  Everyone who initiates a FoxPlan understands this is only the start, they have decided to ‘join the journey’ to a purposeful life - with wellness and meaning.

The schools might invite us in time, the Wananga eventually – it’s the corporates we offer our Financial Wellbeing Workshops to – that’s where Mums and Dads can seek information, education and advice and where more companies see the value in providing these kinds of services to their staff.  If Mums’ and Dads’ financial habits and outcomes are improved, the next generation will learn from them.  We remain optimistic, and for those with an appetite for ‘application’s – we’ll deliver in time and ‘on purpose’.

www.foxplan.nz / corporate health and wellbeing