Many Americans Lack Trusted Financial Confidant, Survey Finds

Many Americans say they have no one to turn to when they need help with their finances.

The National Financial Educators Council conducted a survey with a single question: "When you have a financial question, who do you turn to for trusted financial guidance?"

The most popular answer to the question depended on the age of the respondent. About 37% of those ages 18-34 said they turn to their parents or guardians for advice. Those ages 35 and older were more likely to say they turn to a financial advisor, with 35% of the 35-54 age group saying they go for professional advice and 41% of the over-55 age group turning to an advisor for help.

But a sizable percentage of respondents said they have no one to turn to for financial advice.

Nearly one-quarter of the over-55 group (24.3%) said they did not have anyone to provide advice. Of those ages 54 and younger, 22% said they have no one to provide financial guidance.

Respondents said they also turned to siblings, coworkers, friends and extended family for financial advice.

'It's Vital'

Vince Shorb, CEO of the NFEC, was particularly concerned about young adults who say they don’t have anyone to rely on for financial advice.

"People who don't yet have money ready to invest into equities, real estate, or insurance products lack access to qualified professionals they can turn to for financial guidance,” he said. “It's vital for people to gain access to knowledge and guidance when they're young, because the financial decisions they make as young adults will have direct impact on their financial futures."

The NFEC is conducting an ongoing series of research exploring how people get financial guidance and who they turn to for support on important financial decisions. These data are being used to guide the financial coaching product line to help people in greatest need of personalized financial education and guidance.

The broader focus of the NFEC's research is to gather empirical data and discover best practices to share financial literacy statistics with others in the industry. The NFEC seeks to gain in-depth knowledge about how people make financial decisions, the impact of their financial situations, and their capabilities to make financial choices that align with their personal goals. The research can give financial wellness organizations and financial coaches data to effectively support development of personal finance skill sets.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

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