How to Become a Financial Advisor

Financial advisors do exactly what the name suggests. They work with clients to assess their current financial status and future plans, economic conditions and forecasts, and regulations, to provide financial advice. Read on to learn the steps you must complete to become a financial advisor.

Steps to Become a Financial Advisor

Below are five basic steps for becoming a financial advisor.

STEP 1: Earn a Bachelor’s Degree

If you’re currently enrolled in college and working toward your bachelor’s degree, you’re already on the path toward becoming a financial advisor. Most practicing financial advisors majored in some type of business or finance program, although it’s not required to earn a bachelor’s degree to become a financial planner.

78% of respondents in our Latest Survey of Trends Report hold a bachelor’s degree or higher.*

If you’re considering a career in financial advice, it might also be a good idea to find and interview someone who is currently working in the field. Tell them you’d like to become a financial advisor, and ask them specific questions about what an average day looks like, what factors influence their compensation, and what they like and dislike about their career.

Download the free eBook, Getting There from Here: Career Path Stories from Finance Professionals, to get firsthand accounts of what it's like to have a rewarding career in finance.

STEP 2: Complete an Internship

While still in school, pursuing an internship with a financial advice firm or sole practitioner is more critical than ever. Recent data reveals a significant skills gap in the industry: only 42% of surveyed professionals believe that recent graduates currently have the skills needed to succeed in financial services.^*

An internship provides a great opportunity to:

• Bridge the Skills Gap: Gain the practical, hands-on experience that veteran advisors feel is missing in the current talent pipeline.

• Understand the Human Element: Witness firsthand how advisors balance technical analysis with the empathy and judgment required to maintain trust-based relationships.

• Find a Mentor: Connect with the 18% of professionals who entered the field through direct personal connections or recruitment, often starting as interns themselves.^*

STEP 3: Find a Job

Once you have your degree and internship experience, focus your job hunt on the qualities firms value most in today's market. While your technical knowledge is a baseline, your soft skills will be your greatest differentiator. 

• Highlight Communication: 91% of successful practitioners cite people and communication skills as the single most important factor in their success.^*

• Demonstrate Simplification: Recruiters are looking for advisors who can take complex financial topics and explain them in a simplified and digestible manner for clients.

• Show Adaptability: With 39% of the industry viewing Artificial Intelligence (AI) as a major challenge, emphasize your ability to use technology to enhance, rather than replace, the human connection with clients.^*

STEP 4: Get Certified

The field of financial advising is competitive. Many advisors pursue certifications or licenses to help them develop a specialty or differentiate themselves from their competition. 75% of surveyed financial professionals hold at least one professional designation, license, or certification.^* 

Earning a credential isn't just about a title; it offers a measurable return on investment: 

• Earnings Boost: Professionals report an average 21% increase in earnings the year after receiving their most recent designation.^*

• Confidence Gain: 86% of program graduates from the College for Financial Planning-a Kaplan Company report feeling more confident when speaking with clients after earning their credential.^*

• Client Growth: 81% of advisors saw an increase in their client base after completing their specialized education.^*

Common credentials to consider include: 

• Securities and Insurance Licenses: Required for the 29% and 20% of roles involving the sale of financial products.^*

• CERTIFIED FINANCIAL PLANNER™ (CFP^®): Held by 28% of professionals, this is the gold standard for comprehensive planning.^*

• Specialized Designations: Options like the Chartered Retirement Planning Counselor™ (CRPC™) (26% of holders) or the Financial Paraplanner Qualified Professional™ (FPQP^®) (23% of holders) allow you to differentiate yourself in specific market niches.^*

STEP 5: Pursue Additional Education

A thirst for knowledge will serve you well in your financial career. Financial advice professionals will often go back to school to pursue a graduate degree, or even a doctorate. Your job relies on your ability to provide valuable financial advice to clients. The pursuit of further education is a tangible way to demonstrate your commitment to providing excellent service as you continue in your career.

Demand for financial advisors is high and will continue to grow as our society becomes more financially literate and recognizes the importance of making sound financial decisions.

Now that you understand how to become a financial advisor, you are prepared to chart your own career path and get started providing valuable advice?