ELI5: Explain Like I'm 5

Financial advice

Okay kiddo, financial advice is like a grown-up's version of getting advice from your parents or teachers about money. You know how sometimes you get some money from your allowance or from doing chores and you want to know how to spend it wisely? Well, adults have bigger amounts of money that they need help with too.

Just like how your parents or teachers help you decide how to save or spend your money, financial advisors help adults figure out what they should do with their money. They help people make smart decisions about how to save money for things like buying a house or going on vacation. They can also help people invest their money so that it grows over time.

But, it’s not always easy to know what to do with money. That’s why financial advisors spend a lot of time learning about money and how it works. They study things like stocks, bonds, and taxes. They use all this information to give people advice on what to do with their money, based on their goals and needs.

Of course, this advice comes at a cost. Just like how you trade your allowance money for a toy, adults have to pay financial advisors for their help. But, if they listen to their advice and make smart decisions, they can save and grow their money over time.

So, when you grow up and have a lot of money, you can find a financial advisor to help you make good choices with it!