How LearnLux plans to bring more women and minority workers into the financial planning profession

The financial planning space has long had a reputation as an industry with a predominantly male and white workforce — which can end up excluding several groups of consumers who crave financial assistance but are reluctant to work with professionals they can’t relate to.

In an effort to create a more diverse industry, LearnLux, an organization that partners with employers to offer financial well-being as an employee benefit, has launched a scholarship program to help underrepresented individuals earn their Certified Financial Planner certification. Winners will receive $3,000 to cover test preparation materials and the cost of sitting for the exam.

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“We take it as our responsibility to create more belonging in the financial services industry by having planners who represent every LearnLux member,” says Rebecca Liebman, CEO of LearnLux. “This means creating a judgment-free space where people can talk about money with someone they are comfortable with.”

Demand for personal financial advisers is expected to grow 7% through 2028, according to the Bureau of Labor Statistics. As the pandemic continues to cause economic stress for many employees, employers are acutely aware of the need for benefits that address monetary stress. The assistance a financial professional can provide can be invaluable in helping employees provide for their families, save for the future, and eliminate debt — especially if that adviser has shared a similar experience.

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“Personal finance is often both cultural and behavioral,” Liebman says. “For example, recent studies report that Hispanic Americans place greater importance on financially supporting family and friends, often above their own goals like saving for retirement. When they have an opportunity to meet with a financial expert from their same cultural background, those intricacies are immediately understood and a customized plan can be put in place.”

Currently, women account for just 23.3% of all CFPs, and fewer than 0.1% of CFPs are non-binary, according to The CFP Board. Only 1.68% of CFPs are Black, while 2.46% of CFPs are Latinx.

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“The industry has created a paradox making it difficult for underrepresented groups to find planners they identify with,” says Sabrina LaFleur, a CFP and lead planner at LearnLux. “The compounded effects of this lack of access while being the subject of discriminatory practices in the financial industry deters many women and minorities from entering the field altogether. This leaves groups who could most benefit from their advice severely underserved.”

The CFP exam is one of the more grueling professional certification tests out there, requiring at least 250 study hours to prepare, according to Kaplan Financial. Many advisers fail their first attempt at the CFP due to insufficient preparation; the overall pass rate in 2019 was just 62%. The LearnLux scholarship aims to give recipients the tools and guidance necessary to pass the exam within 19 months.

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“There is no silver bullet solution for solving the deep DEI challenges that the financial services industry faces,” Liebman says. “An early emphasis on personal financial well-being can elevate a career in the financial services industry so it's on the radar for women and underrepresented groups. Mentorship and scholarship programs can help to remove barriers to career opportunities and financial support.”