Most people think financial planning starts with buying something—an insurance policy, a retirement account, or a hot investment. It doesn’t. That’s backwards.
Financial planning should always start with learning. If people don’t understand how money works, they’re more likely to get sold the wrong thing.
Understanding must come before action. Otherwise, planning turns into guessing.
The Real Problem With “Product-First” Thinking
The financial world has made things confusing on purpose. There are too many products, too many terms, and too many people trying to sell before they explain.
In a 2023 study by the FINRA Investor Education Foundation, only 34% of Americans could answer four out of five basic financial literacy questions correctly. That means most people don’t know how interest works, how inflation affects savings, or how to manage risk.
“When we started, I spent more time explaining how things worked than recommending anything,” said Joshua D Mellberg, who founded one of the fastest-growing retirement planning firms in the U.S. “People didn’t want products—they wanted clarity.”
He built his business by leading with education, not sales.
Why Education Builds Trust
When you teach people first, you earn their trust. You stop being just a salesperson. You become someone they can ask real questions. That’s when planning actually starts.
Imagine going to a mechanic who tries to sell you an engine before even looking at the car. That’s what product-first advisors do.
Education flips the script.
It tells the client: “This is about you, not my commission.”
The Stats That Matter
- The CFP Board found that 71% of Americans want financial professionals to educate them, not just sell to them.
- In a Vanguard study, financial literacy increased investment returns by 1.5% annually, just from better decision-making.
When people understand what they’re doing, they make smarter moves. That adds up over time.
What Clients Really Want (And Don’t Get)
People don’t want to feel stupid. But that’s often how they feel after meeting with a financial professional.
The acronyms. The charts. The pressure.
That’s not planning. That’s overwhelm.
Instead, clients want:
- Simple answers
- Clear explanations
- Honest advice
- Control over their decisions
“I once had a client tell me he felt like someone finally turned the lights on,” said one advisor. “He’d been investing for years and didn’t really understand any of it.”
That’s the power of education. It lights the way.
How to Build Education Into Financial Planning
You don’t need to be a teacher. But you do need to help people learn before they buy. Here’s how:
1. Start with Questions, Not Charts
Ask simple things like:
- What do you want your money to do?
- What scares you financially?
- What’s worked for you so far?
Listen more than you talk. That gives you better context—and earns more trust.
2. Use Everyday Language
Don’t say “deferred annuity with income rider.”
Say, “This is something that grows over time and pays you later.”
If you wouldn’t use the term at a dinner party, don’t use it in a client meeting.
3. Break Everything Into Steps
Planning doesn’t happen in one meeting. Set goals for each step:
- Step 1: Understand current situation
- Step 2: Set short and long-term goals
- Step 3: Learn what tools can help
- Step 4: Choose a plan
That’s real planning. It gives the client space to think.
4. Give Them Something to Learn On Their Own
Send short explainers, charts, or worksheets. Not PDFs full of jargon—real tools.
Let them process at their own speed. Then follow up with more teaching, not more selling.
Why This Helps the Advisor Too
Leading with education doesn’t just help the client. It helps the advisor grow a better business.
Educated clients:
- Complain less
- Understand more
- Stay longer
- Refer more
They don’t need hand-holding on every market swing. They don’t freak out when a product underperforms for a quarter. They trust the process—because they understand it.
“I used to spend 80% of my time explaining what just happened,” said one planner. “Now I spend that time planning the future. That shift came when we made education part of every meeting.”
Avoid the Most Common Trap
Here’s what most advisors do wrong. They teach just enough to pitch. That’s not real education. That’s bait.
If the point of the lesson is to sell, it’s not a lesson. It’s a funnel.
Real education gives people the option to walk away smarter, even if they don’t buy.
That’s the standard.
A New Planning Culture
The best firms are shifting. They build learning into every part of the client journey. They explain first. They simplify. They give people space to think.
They lead with honesty, not urgency.
They sell fewer products—but they keep more clients.
Final Tips to Apply Today
- Cut your pitch deck in half. Use the time to ask more questions.
- Record a 3-minute video answering one common question. Share it.
- Turn your onboarding process into a short course. Teach before you plan.
- Say “Does this make sense?” five times per meeting. Not once.
- Measure client understanding—not just account growth.
Bottom Line
Financial planning is not about selling. It’s about teaching people how to make smarter money choices. Products come later. Learning comes first.
That’s how trust is built. That’s how lives change.
And that’s how strong, honest financial businesses grow—from the ground up.
