What is a Financial Planner and Do You Need One? A Simple Explanation for Kids

What is a Financial Planner & Do You Need One? A Simple Explanation for Beginners

Introduction to Financial Planners for Kids and Teens

This video explains the concept of a financial planner in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about financial planners, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.

What is a Financial Planner and Do You Need One - A Simple Explanation for Kids Teens Beginners
  • Save

Suitable for students from grade levels:

  • Kindergarten
  • Elementary School
  • Middle School
  • High School

The topics covered are:

What is a financial planner?

Financial Planner for Kids Teens Beginners
  • Save

A financial planner is a qualified professional who helps people meet their near and long term financial goals.

Financial planners consider their clients’ goals, risk tolerance, and personal situation in order to curate a plan that works best for them.

How do financial planners help their clients? What exactly do they do?

Financial planners assess their clients’ overall financial health in order to help them meet their financial goals.

They start by asking their clients to complete a questionnaire that provides a good view of their current and forecasted financial situation, as well as their risk profile. This helps them create a comprehensive financial plan that acts as a roadmap for meeting their clients’ goals.

In addition to investment advice, a financial plan can include budgeting, tax planning, retirement planning, risk management, estate planning, etc.

Once the plan is in place, financial planners also monitor progress and make adjustments as their clients’ needs and personal situations change over time.

You may also like:  Roth IRA vs Traditional IRA: A Simple Comparison for Kids, Teens & Beginners
[This is an affiliate link: at no additional cost to you, we will earn a commission if you click & make a purchase]

I’ve heard about Certified Financial Planners. What are those?

Certified Financial Planner - CFP
  • Save

Certified Financial Planner or CFP is a very prestigious professional designation awarded to someone who successfully completes exams administered by the Certified Financial Planner Board of Standards.

A CFP is a type of financial planner formally recognized as an expert in various aspects of financial planning, including investment management, tax planning, retirement planning, estate planning, etc.

One of the most important aspects of being a CFP is their fiduciary responsibility which requires them to act in the best interests of their clients at all times.

How much do financial planners charge? What is their fee?

Should You Hire a Financial Planner - Fees and Charges
  • Save

There are many different fee structures financial planners use.

To give you an idea about the average fees, the amount charged can be:

  • A percentage of assets under management – from 0.5 to 2% per year
  • A flat yearly fee – from five thousand dollars to possibly tens of thousands of dollars, or
  • An hourly fee – from two to four hundred dollars an hour

Before you hire a financial planner, you need to make sure you know what services you are getting for the fee and make sure you are not overpaying for services you don’t need.

Do I need to hire a Financial Planner?

If you are disciplined when it comes to managing your money and are comfortable making decisions about taxes, estate planning, retirement, and investing; then you may not need a financial planner.

But if you are not disciplined or need help with those topics, then you should consider hiring a financial planner.

However, before hiring a financial planner, it’s best to educate yourself about these topics so you can have an intelligent conversation with the financial planner and ask the right questions.

You may also like:  Short, Medium & Long Term Savings Goals: A Simple Explanation for Kids & Beginners


Have you ever hired a financial planner? If yes, what factors did you consider?

Please let us know in the comments!

Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens

Podcast: What is a Financial Planner

What is a Financial Planner and Do You Need One
  • Save

2 thoughts on “What is a Financial Planner and Do You Need One? A Simple Explanation for Kids”

  1. I appreciate your explanation when you informed us that the role of a financial planner is to help people meet their financial goals, whether they are short or long-term term by curating a plan that works best for them. I’ve been working for three years now, and my savings have been growing steadily because my job pays me well, so I was thinking of getting help from a financial planner soon to make sure my retirement plan is prepared without a hitch. I’ll keep this in mind while I look for a financial planner operating in Salt Lake City to help me out with my retirement savings plan soon.


Leave a Comment