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Financial Education is a Great Client Retention Tool

By Crucial Clips     July 26, 2017
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ, Mar. 31, 2017 

RITA RAAGAS DE RAMOS, SPECIAL PROJECTS MANAGER, FA IQ: Hello. I'm Rita Raagas de Ramos from Financial Advisor IQ. And with me today is Deborah Stavis, CEO and founding partner of Stavis & Cohen Financial. At Stavis & Cohen, you have two financial workshops that you conduct, and each of them are designed for specific audiences. The first one, I believe, is Stavis & Cohen University for the young adult children of your wealthy clients, and the second one is the Women's Forum for prospective clients.

I'd like to talk about these workshops. First of all, what do you do in these workshops, and what do you hope to achieve?

DEBORAH STAVIS, CEO, STAVIS & COHEN FINANCIAL: Well, you're right. We have two distinctly different workshops. One, Stavis & Cohen University, which is for young adults from about 18 to 35, and we cover everything from savings to investing. And one of the things we accomplish is giving them a great way to budget, because most young adults aren't interested in getting out a calculator or a pen and paper.

But when we teach them about mint.com or YNAB, Why You Need a Budget, they basically become much more engaged. Because now they've got it on their iPhone, and they love the charts and bars and graphs, and so they come away, actually, with an ability to aggregate all of their financials. And they can look on a monthly basis, for example, and see, well, was this the month I was too much of a foodie, or was it, did I get carried away with Broadway tickets, and make deliberate decisions.

Because most spending plans-- budgets-- are great if they're deliberate. And if people track what they're doing and if they don't mind, if that process is not so much of a nuisance, they can be better budgeters and better savers. They also learn how to become executors and trustees, if those are the jobs that they are entrusted with later. And it's a unique opportunity to do that, because they come out of either high school or college.

And somehow we expect people to know so much about finances, and yet they don't. But with some of these technology tools and just giving them a way, they get engaged-- and especially with young people. When parents say, we're going to introduce you to our financial planner, the word "financial" is scary and "planner" is boring.

So we really have to demonstrate with the young adults that even though we are their parents' financial planner, that we can look at it in a more innovative and engaging way for them. So it's about building the relationships. That's what we want.

The purpose of the Women's Forum is to have women embrace and engage a financial partnership with their partner, with their parents. Whatever the dynamics are, we're wanting them to engage in investment piece. And it's an amazing statistic if you think about the fact that women, on average, outlive their male counterparts by 14 years. So they involuntarily inherit the job of managing the family money, but often they've never been given the tools to do it. So the Women's Forum gives us an opportunity to go from soup to nuts on all the financials.

It's an all-day program, and we do a lot of edutainment, which is innovative education, during the course. And it serves to open dialogue between family members that they've never had before. Because financial planning, although it's incredibly interesting to me, isn't that accessible to a lot of people, one of the things that we decided to do in our practice was break away from the old stand-and-deliver format. And we offer humorous sketches that precede every financial topic.

And the idea is with humor and for people to see themselves in these videos, and it's really built for an online world. Because people don't want to read white papers on financial topics. They really would like another way to engage, and so edutainment is that learning in a fun environment. It's that spoonful of sugar that helps the financial medicine go down.

RITA RAAGAS DE RAMOS: Thank you, Deborah.

DEBORAH STAVIS: Thanks, Rita.