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Why should you start a Financial Coaching Business for millennials?

Developing a financial coaching business for the millennial generation can prove out to be the next big breakthrough. Millennials or Generation Y represents anyone born between 1981 and 1996 (24-39 years old currently). Millennials account for 57% of the U.S. population in 2020, up from 50% in 2014 thus opening up a new market for financial advisors. Financial coaches view generation Y as the clients for the future as there is a huge market for guiding and advising millennials as they move through their life cycle.

The big opportunity of starting a coaching business

Millennials face financial problems that are quite unique to their generation: millennials are burdened by their student loans, millennials don’t understand the importance of high-yield, millennials don’t know how to create a budget, millennials aren’t saving money for retirement, millennials have been spending too much and saving too little, they have to take the burden of the increased cost of living, low savings and more spendings.

If you want to win big in the financial industry, becoming a professional financial coach is worthwhile. The median salary per annum for financial advisors in the United States is $88,890. (According to

Coaching industry overview

Starting a financial coaching business is not only profitable, but it can also help you get out of your typical 9-5 job and you will have the chance to influence people, but it also provides you with the freedom and flexibility to work at your own pace and to be your own boss.

You can bring a major change in the lives of people by guiding them while still earning a good amount of money.

The importance of Financial Coaching to Millennials

This generation has been spending a large part of their daily life towards entertainment be it watching movies, going to pubs or watching series on Netflix they prefer all of this over going out and planning about their future or their finances.

This proves out to be a big problem when they grow up and have to be independent, handle their expenses, earn for their wellbeing and to take care of the needs of the family.

All this is making the youth more and more worried about their future so rather than watching Netflix or spending their time on entertainment more and more millennials are now turning towards financial coaches who can help them handle their finances.

They don’t get a chance to acquire the necessary financial literacy in their schools and colleges and thus they look for someone from outside the education system to cater to their needs of financial literacy.

Now the main questions arise: How do you become a financial advisor? What are the best ways to attract millennials? What tools can make your business unique? These are some of the questions that we will be answering in this article.

The Unique Generation

Millennials tend to be bigger spenders; they are willing to spend more and more on the latest and the best tech available out there.

They love to spend their money to get the latest iPhone, they go out to have dinners, they go out to watch movies much more than their previous generations. As a result, they spend more freely than older generations and have less money to keep as their savings in the short-run and thus face financial burden as they grow up.

Most millennial clients face major financial decisions that heavily impact their household income like getting their first job, setting up a family, buying their first car, leaving the rented house and moving to a newly bought one.

Giving financial advice to these millennials should, therefore, focus on maintaining their cash inflow and outflow.

The majority of the financial decisions taken by the Millenials are related to how much and where they are spending their salary and how they can grow their income.

Between the highest student loan debt, the ever-increasing cost of living, and lower salaries, the millennial generation clearly needs financial advisors that they can actually afford. This is where you come in. With the help of proper planning and proper strategy, you can cater to the needs of this fresh market.

The Challenges in coaching millennials

Financial firms have emphasized the management of assets. But the average Millennial doesn’t have many because of their student loans and their low amount of savings. They don’t have the required financial knowledge because they never learned about these things in schools or colleges.

The minimum limits of assets required for getting financial assistance set forth by financial coaches and wealth management companies pose a problem to the Millennials, they face a hurdle that is quite difficult for them to overcome and as a result, they are not able to get the financial advice that the older generations with a high amount of savings can acquire.

Millennials seek the answer to this common problem: How to find the best financial planner who can not only give them the required knowledge but can also guide them according to their specific needs and interests. Younger clients have realized the importance of getting financial advice, they know that financial advice can help them increase their income and financial advisors can help them achieve their ultimate goals.

They are just waiting for the financial advisors to put forth their coaching and advice in such a manner that they are not burdened by the fees charged by these advisors, they just need the perfect opportunity to grab that advice by being charged according to their ease.

What advisors can do:

  1. Build confidence: You should reassure this young generation that saving and spending is not as stressful as they think.
  2. Giving a human touch: People still value the human touch. Turning on your laptop, going on a financial website and getting your bank card debited can prove out to be a bit scary.
  3. Marketing to millennials: Speak to them in a language they understand; find them on social media where they love to spend their time.
  4. Search Engine Optimisation: Make sure to game up on your search engine optimization (SEO) strategy  
  5. Build credibility with digital content: To tell your story and educate the millennials in need of support; use websites, blog posts, multimedia newsletters, videos, podcasts, and interactive meetings.
  6. Programs catered to the millennials: Build programs that can cut the required minimum investment for Millennials.
  7. Moving to a new pricing structure: Traditional pricing structures constrain many firms from accessing the younger clients.
  8. Make an attractive website: Make use of an optimized website and various social channels to build a strong online presence.
  9. The Millennial generation tends to arrive at their own conclusions. So instead of telling them to go in a particular way or do a particular task you have to ask them the right sequence of questions and let them finalize on the best alternative themselves.
  10. Use the subscription model: They’re used to pay for membership in small bite-sized payments; they pay for Netflix monthly, they have a monthly gym membership, so provide your financial coaching as a subscription model that can fit according to their needs.
  11. Be friendly: Millennials want someone that sees them as individuals and not someone who is there as their coach and sees them as clients.
  12. Use inclusive language: Make use of inclusive language while talking to them, millennials like it when they feel like their opinions matter and that their inputs will be taken into consideration. For example, instead of saying I’ll plan for your next month’s investments say we’ll together plan for your next month’s investments.
  13. Go digital: Millennials are available on Facebook, Twitter, Instagram, and LinkedIn. Link to them and introduce them digitally to your organization.

Tools and Softwares for Financial Advisors

1. CRM Software      

Client Relationship Management (CRM) Software, as the name suggests, helps you in tracking the details of your customers; their mobile number, email id, address, etc which can act as the perfect software for your coaching business.

You can even check the last time you spoke to a particular client and what you both talked about so that you know when is the correct time to give a call to your clients again. Millennials prefer getting consistent updates about their finances and the use of this software can be a good way to cater to their needs. There are 1000+ CRM software you can find on G2 Crowd or you can start with all-in-one Explara business software.

2. Email Marketing Automation Software        

You can spread financial knowledge and can market your services using an autoresponder which is a sequence of emails that are sent automatically to people who have subscribed to your content. Sending emails consistently to millennials can help in building trust and will make your clients well informed. There is 1000+ Email marketing software (search on G2 Crowd, Capterra, Software Suggest, and you can explore Explara’s own email marketing app.

3. A website

Having a website might sound like the most basic tool for any financial advisor, but this miracle can prove out to be a big part of your profit boosters. 

A website explaining what you do and the plans or the subscriptions available for the customers can boost the number of responses that you receive.

4. Social Media Automation Tool

With a social media automation tool like Buffer, Hootsuite and more, you can plan in advance the content that you want to post and the tool will put out content for you consistently so that your content can reach masses every day. 

5. SEO Software   

Search engine optimization is very important to drive the attention of the millennials. It is very important for you to drive their attention towards your content and as the younger generation is the digital generation they don’t prefer to go office-to-office to find what they want, they look for information on search engines like google so in order to grab their attention you better be there. Some of the best SEO software we recommend is: Ahrefs, Moz, SEMRush, UberSuggest and more

Moving forward

This generation is the digital generation, if you want to connect with them then you need to adapt yourself according to their needs, you need to speak in a language that they understand.

Financial planning using the software and technologies that can make your work and your client’s life much easier can prove to be a big success.

This unique generation filled with potential and energy can’t be ignored, we are going to see the largest intergenerational wealth transfer in history once the oldest baby boomers hit their mid-70s so instead of sticking to a particular consumer base, why not give your advice to those who are currently in need for that advice.

Make efforts to understand their needs, provide them with the financial knowledge that will be helpful to them. Millennials value trustworthy relations, they won’t give their incomes in your hands if you don’t make it clear through your actions and communication that they can trust you. They want you to cater to their inputs and value their opinions. Make sure to engage in honest communication and make an environment where your new clients can feel comfortable in asking you the queries that they have.

Millennials value your opinion because they are currently in need of financial coaching.

You might not be able to see the results very quickly but you surely are going to be amazed by looking at how profitable the coaching business can turn out to be if you have the required amount of patience and the willingness to make it big.

You are most welcome to ask us any queries while starting or growing your coaching business.



Bharat Duggal

Bharat Duggal is a content writer at Explara-an all in one platform which offers a suite of software products for Event Ticketing & Registration, Online Selling & Payment Solution, Crowdfunding & Donation, and Community & Membership. Bharat enjoys writing about the latest trends in the market, learning about new entrepreneurs and watching movies in no particular order.

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