Why should young adults get financial advice?
Find out why young adults need financial advice and how it can benefit them in the short and long term to ensure they reach their goals. Or match with a financial advisor by completing the form below.
Summary
Financial advisors can help young people create a plan for their investments, loans, and future goals.
Asking the right questions will ensure you find an advisor that meets your expectations.
Finding the right advisor is crucial, so looking for the relevant credentials and experience is important.
Unbiased can match you with a financial advisor suited to meet your unique needs and goals.
What is a financial advisor for young people?
A financial advisor acts as a personal money guide, helping young adults navigate complex financial decisions. They offer expertise, create personalized plans, and evolve with your financial journey.
Young adults benefit from early financial literacy that helps them to address unique challenges and simplifies a complex world.
Financial advisors can empower the younger generation to achieve their financial goals and manage their money successfully and sustainably.
How can a financial advisor help young adults?
Financial advisors for young adults can tailor their support to specific needs, depending on their stage of life.
Early on, they can help establish a strong savings habit, which is critical for future goals.
Advisors can also help with planning and offer guidance on budgeting for tuition, exploring scholarship opportunities, and other relevant topics.
As their income grows, an advisor guides investments, maximizing potential returns while managing risk.
Working with a financial advisor is crucial for young people who already have some wealth, as it can help you maintain and build that wealth.
Working with a financial advisor is typically a long-term relationship, so starting early is hugely beneficial.
What are the advantages of using a financial advisor as a young adult?
The best financial advisors for young adults will provide these benefits:
Establishing strong financial habits: A financial advisor can help young adults develop essential habits like budgeting, saving, and responsible spending.
Navigating complex financial decisions: From student loan repayment strategies to investment choices, financial advisors offer expert guidance.
Goal setting and achievement: Financial advisors help define and prioritize financial goals, creating actionable plans tailored to each individual's aspirations and ensuring they stay on track.
Building a long-term relationship: By partnering with an advisor early on, young adults can establish a trusted financial guide who can adapt their advice to changing situations.
Peace of mind: A financial advisor alleviates anxiety surrounding finances, providing expertise and a clear path forward.
How can I find a good financial advisor as a young adult?
To find a suitable financial advisor, young adults can utilize online resources, explore professional networks, or seek recommendations from trusted sources like parents, friends, or their work colleagues.
The best financial advisors for young adults will generally have one of the following qualifications:
Look for certifications:
Certified Financial Planner (CFP)
Chartered Financial Consultant (ChFC)
For investment advice, consider:
Chartered financial analyst (CFA)
Accredited Investment Fiduciary (AIF)
Beyond qualifications, it's crucial to assess the advisor's communication style and overall approach. Ensure their values align with yours and that you feel comfortable discussing financial matters openly.
What questions should I ask a financial advisor as a young adult?
The right financial advice for young adults will come from asking the correct questions:
1. Experience and focus
Do you specialize in working with young adults and understand our unique financial challenges?
Can you share examples of how you've helped other young clients like me achieve their goals?
2. Fee structure and affordability
How are your fees structured? Do you offer flat fees, hourly rates, or commission-based services?
Do you have a minimum account requirement?
3. Services offered
What specific services do you offer that would benefit me at this stage in my life?
Can you assist me in creating a budget and establishing good financial habits?
Will you help me explore investment options that are suitable for my risk tolerance and long-term goals?
4. Communication and accessibility
How often will we meet or communicate to review my financial plan and progress?
What communication methods do you prefer?
5. Commitment and long-term relationship
Are you willing to adapt my financial plan as my circumstances change (career changes, marriage, starting a family)?
How will you help me stay on track and motivated to achieve my long-term financial goals?
6. References and testimonials
Can you provide references or testimonials from other young clients who have benefitted from your services?
Are you affiliated with any professional organizations or networks that demonstrate your commitment to ethical practices?
Find the right financial advisor
Starting early on your financial journey will lead to greater success down the road and ensure you’re ready for any challenge.
Get matched with an SEC-regulated financial advisor at Unbiased and benefit from expert financial advice tailored to your needs, goals, and plans for growth.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.