For many people, investing and financial planning are complicated and hard to understand. According to a recent financial fluency survey of 2,000 people, the average American only answered 48% of questions correctly in a quiz on investing terms and basic concepts. Even more striking, less than 1% of those surveyed managed to answer all the questions correctly. This highlights a critical challenge for financial advisors: how to bridge the knowledge gap without making clients feel overwhelmed, confused, or patronized.

As a marketing agency with a deep understanding of client communication and the financial industry, we have a few dos and don’ts for financial advisors to better connect with their clients.

Start with Empathy, Not Assumptions

✅ Do: Begin every conversation by acknowledging that financial topics can be complex and that it’s perfectly okay not to know everything. Let clients know they’re not alone in their confusion.

❌ Don’t: Assume that clients have a baseline understanding of financial jargon. Even common terms can be foreign to someone without a financial background.

Simplify Without Dumbing Down

✅ Do: Use analogies and real-world examples to explain complex concepts. Relate financial planning to everyday activities, like budgeting for groceries or planning a vacation.

❌ Don’t: Oversimplify to the point where your client feels talked down to. Instead, aim to clarify without condescension.

Encourage Questions and Foster Dialogue

✅ Do: Create an environment where clients feel comfortable asking questions, no matter how basic. Reinforce that asking questions is a key part of the planning process.

❌ Don’t: Rush through explanations or discourage inquiries. A client who feels hesitant to ask questions is less likely to feel engaged or confident in the plan.

Tailor the Conversation to the Client’s Needs

✅ Do: Adapt your communication style to match your client’s level of comfort with financial topics. Some may prefer a high-level overview, while others want detailed explanations.

❌ Don’t: Rely on a one-size-fits-all approach. What works for one client might alienate another.

Provide Clear, Actionable Takeaways

✅ Do: Conclude each conversation with clear steps and a summary of what was discussed. This helps clients feel more in control and ensures they know what comes next.

❌ Don’t: Overwhelm clients with too much information at once. Focus on what they need to know now and what will be addressed in future meetings.

Good Communication is Good Business

Clients have many options when it comes to choosing a financial advisor—or deciding whether to even use one at all. For many, the decision hinges on finding an advisor who not only understands their financial goals but also communicates in a way that makes them feel educated, empowered, and respected.

Your success with new clients, especially younger investors who are newer to financial planning, hinges on your ability to communicate with them effectively. It’s important to understand their background and level of comfort with financial concepts and tailor your communication accordingly. It’s worth the investment: when you gain the trust and relationship that comes with effective communication, clients are more likely to stick with you.

At Graham Media Partners, we understand the importance of these connections. If you want to learn more about tailoring your communication style to connect with your clients, get in touch with us today!