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How to give effective financial planning advice to parents
How to give effective financial planning advice to parents

Jul 19 2022

How to give effective financial planning advice to parents

How can parents make good financial decisions to ensure the betterment and happiness of their family? MDRT members from the Philippines share their thoughts.

By Antonette Reyes

Topics covered

Being a parent has many responsibilities, such as ensuring food is on the table, sending the kids to school, paying the bills, maintaining a home for the family, and managing finances. Imagine the daily pressure parents face in looking after themselves and their families.   

Three financial advisors from the Philippines share how they advise parents to help them make sound decisions to better manage their family's money and future.   

Know their priorities  

"Parents set different essential targets for their families, which is why we ask about their priorities because they will vary. Some will put their children's education first, while some will focus on their retirement, and some will prioritize their life insurance," according to Edwin Principe, a one-year MDRT member from the Philippines. "Because some parents treat these plans as expenses, we must understand their budgeting philosophy as they allocate most of their funds to their priorities. As financial advisors, we help them address these priorities through effective long-term planning."

Understand their love language   

Arlyn Tan, a 16-year MDRT member from the Philippines, shared that "in our environment, the parents' hearts are focused on the family and securing their children's future. Because the motivation and methods vary, we must understand the parent's love languages as it will be able to help to position financial products, services, and examples during the presentation."   

Arlyn identified how each love language could help with financial planning for clients:   

  • Words of Affirmation: People with this love language will appreciate the prompting of milestones during their financial planning journey. Thus, they will prefer plans with a specific duration of savings or investing with a targeted timeline for reaping the harvests.   
  • Quality Time: People feel that they plan now on earning to have quality time with their loved ones. Thus, convincing them that gradual savings and investment will allow appreciation of fund value to enjoy special trips during their children's vacation.    
  • Physical Touch: People feel secure when they can touch the cash in their wallets. Positioning the available liquidity at all times in the planning session will enable them to consider the plan.     
  • Acts of Service: The belief of prospects can be geared toward buying insurance and education plans for themselves and family as a form of service.    
  • Receiving Gifts: Presenting plans and strategies that provide regular income and endowment are more attractive to these parents.  

Besides the love languages, Arlyn advises considering the aspirations of the parents for their kids, as well as their children's capabilities and interests, which will influence the design and implementation of financial plans.   

"It is important to note that the financial advisors and the parents should understand these plans fully to be guided on the amount and types to get," she added.   

Keep it simple  

"Parents have many things on their minds. It could be as complex as computing their annual budget to pay off all their bills, or it could be as simple as planning what they will have for dinner that night," Mike Advincula, a five-year MDRT member from the Philippines, said. "The last thing financial advisors should do is suggest a complex financial plan to clients. More often than not, the parents would dismiss these financial plans to avoid thinking about them. It would be helpful to simplify the discussion regarding the financial solutions so it won't be a burden to the parents."   


 Contact: MDRTeditorial@teamlewis.com