Why Financial Literacy Still Matters — Even for Seasoned Investors

By the time we meet them, many of our clients have developed solid financial habits. You’ve worked hard, saved diligently, and made prudent decisions to build and protect your wealth.
 
With that said, a significant majority (81%) of survey respondents across income and asset levels believe they would have benefited from financial education at an earlier age, and over half (56%) reported their parents never discussed money with them at all.¹
 
Regardless of where you and your family fall on this spectrum, our role is to enhance your understanding of your wealth. We believe that financial knowledge isn’t a static asset—it’s a dynamic advantage. Here’s why.

Five reasons financial literacy is more valuable than ever

Financial literacy isn’t just for beginners. As markets shift and new investment opportunities (and risks) emerge, staying financially literate can help you make more informed decisions, avoid costly missteps, and feel more confident about your long-term financial well-being.

1. It strengthens everyday financial management — even in retirement

Your day-to-day financial picture likely looks different now than it did 10 or 20 years ago. Fixed income streams, evolving healthcare needs, and legacy goals all require thoughtful planning. Financial literacy can help you:

• Adjust your budget and cash flow as life changes
• Understand the tax implications of withdrawals from different accounts
• Avoid unnecessary debt and preserve liquidity for both expected and unexpected needs

Whether you’re planning travel, gifting to family, or preparing for potential long-term care, understanding your options makes these choices easier and more efficient.

2. It empowers smarter investing—and protects against unnecessary risk

A solid grasp of core investment principles like diversification, risk tolerance, and long-term planning can help you stay the course during market turbulence. According to a 2022 TIAA/GFLEC study, individuals with high financial literacy are more likely to plan for retirement and feel confident about their future.²
 
Financial literacy also helps you evaluate emerging investment options such as sustainable funds or alternative assets — and distinguish between what’s truly promising and what’s just noise. It becomes your filter for smarter decision-making.

3. It enhances peace of mind and reduces financial stress

Confidence comes from clarity. When you understand your financial position, your goals, and your strategies, you can focus on enjoying life instead of worrying about “what ifs.” 

Financial literacy equips you to:

• Plan ahead for large expenses (like healthcare or home maintenance)
• Communicate clearly with your spouse or family about financial decisions
• Feel more secure about your ability to handle the unexpected

The result? Less stress, more control, and a deeper sense of stability.

4. It builds resilience — at the individual and family level

We’ve all seen how quickly economic conditions can shift—whether through inflation, tax changes, or market downturns. Financially literate individuals are better prepared to adjust their plans without panic.
 
It’s also one of the best gifts you can pass on. By improving your own literacy and involving your heirs, you help ensure that your legacy is preserved and managed wisely across generations.

5. It helps clients stay relevant in an increasingly complex financial world

From digital wallets and robo-advisors to cryptocurrency and private equity opportunities, today’s financial environment is constantly evolving. Staying financially literate helps you evaluate new tools and ideas — without falling prey to fraud or fads.
 
You don’t need to master every emerging trend. But understanding the fundamentals, asking smart questions, and staying curious will keep you sharp and secure.

Knowledge is the best asset protection

Financial literacy is one of the most powerful ways to protect and grow your wealth. That’s why we’re committed to sharing useful, actionable content throughout the year — designed specifically for investors like you.
 
We see ourselves as your financial translators: helping you navigate complexity with clarity, and empowering you to make confident, informed decisions. Research suggests that having a financial plan in place significantly boosts confidence in building and protecting wealth (78% vs. 26-27% for those without a plan).¹
 
Whether you’re looking to refresh your knowledge, involve your children or grandchildren in your financial planning, or simply check in on your current strategy, we invite you to take the next step. Talk to your advisor about a financial literacy check-in — or explore one of our upcoming educational sessions.
 
Because no matter how experienced you are, your financial knowledge is an asset that can continue to grow.
 
—

[1] https://newsroom.fidelity.com/pressreleases/fidelity-investments–research–americans-ready-to-break-the-cycle-of-avoiding-family-discussions-on/s/82ad8bf6-548c-4df9-8a6f-d5ec1734439a