How Can a Financial Advisor Change the Financial Habit of Americans?

Written by: Phil Bradford

Only 29% of Americans consulted a financial advisor in 2020. 65% of Americans admitted they did not have a financial advisor.

Both the survey results are shocking. This shows how much opportunity Americans have for growth in their financial habits. They are also scared to discuss their personal finances with anyone.

Reasons why Americans don’t consult a financial advisor:

  1. Because of the growing problem of student debt creating a burden on young Americans, millennials, and Gen Z, they are overwhelmed with their financial status. Even though they feel lost, they do not consider consulting a financial advisor.
  2. A common misconception is that financial advisors only provide services for wealthy people. Middle-class Americans think they can’t afford to seek expert advice. This false belief prevents most Americans from getting the help they need.
  3. With so much information available online, an enormous amount of financial information can be found at your fingertips. The majority of US citizens assume they can gather all the investment-related advice they need by browsing through websites. They believe if they do enough personal research, there is no need to consult an expert.

However, online financial tips can’t replace the value of a financial expert. A financial advisor has experience in his/her field. He/she can map out a personal financial plan to set you on the right path.

So, Americans can greatly benefit from working with a financial expert, or taking matters into their own hands.

So, how can a financial advisor help you?

The average American dream is not to earn millions of dollars. They want a simple, happy, and secure life for them and their family.

Financial advisors can help them out with:

1. Building a secure financial life

Many Americans dream of owning a home and providing their kids with a good education. This seems simple enough, but you need a plan in place to make this dream a reality.

A financial advisor can draw up a budget for you to follow to build a secure financial life.

2. Making smart investment & asset management strategies

55% of American adults invest in the stock market. Many of them invest using amateur knowledge, with no professional support.

This results in disappointing overall performance of their investment.

The same principle goes for asset management. Without proper asset management, you are unlikely to achieve your desired goals.

By consulting a financial advisor, you will get personalized investment and asset management tips. He/she will help you invest with confidence and manage your assets. For example, you may invest in REITs (Real Estate Investment Trusts) or commodities. These investments can continue along with the stock investment.

3. Getting adequate insurance coverage

An impressive 54% of Americans have life insurance coverage.

A good number of Americans have health insurance coverage as well.

The problem is, most people don’t know how much coverage they truly need.

This is when the expertise of a financial advisor comes in handy. They can guide you through the required insurance amount to find the best fit for you and your family.

4. Repaying your debts

The average American has $90,460 in debt, including credit card, mortgage, and loan debt. This is no small amount.

Consulting an advisor for recommendations on how to manage both your secured and unsecured debts is a great way to help pay off debt. It can also take a great deal of stress off your shoulders.

You may be aware that secured and unsecured loans have different features. A secured loan, such as a mortgage or auto loan, has a low interest rate with a longer repayment period. An unsecured loan, as you would find with credit card debt, has a relatively high interest rate. Each type of loan requires a unique approach in managing repayment of debt. A financial advisor can help you find the right kind of debt repayment strategies for both types of loans.

You can check out to find options for solving your debt problems.

5. Taking care of your long-term goals

Americans now understand the importance of long-term financial goals after the financial disasters many experienced in 2020. 26% of them didn’t have an emergency fund.

Now is the time to rebuild an emergency fund and focus on your long-term goals.

Planning for the long-term is not easy. It is not always possible for the average person to manage every aspect of their future planning. You have to cover all of the complexities, from emergency funds to investment.

It’s better to work with a financial advisor for long-term goals, such as retirement planning.

Final words

The DIY (Do It Yourself) approach is not the best solution when you think about long-term personal finance. This is one area of money management that the majority of Americans have an opportunity for growth.

A financial advisor can help build a robust financial future for you and your family. They will educate you on creating healthy financial habits to avoid the pitfalls of financial strain. By taking the first step to working with an expert, you will take control of your current financial situation, rather than avoiding anything holding you back.

Author Bio:

Phil Bradford is a financial content writer and an enthusiastic. He has expert knowledge about personal finance issues and he is a regular contributor of His passion for helping people who are stuck in financial problems has earned him recognition and honor in the industry. Beside writing, he loves to travel and read books.

Related: 7 Questions To Ask When Interviewing Financial Advisors