Financial Advice: A Substitute for Financial Literacy?
J. Michael Collins
University of Wisconsin - Madison - Center for Financial Security
April 25, 2012
A lack of financial literacy can hamper the ability of individuals to make well-informed financial decisions. For people who exhibit problems with financial decision making, financial advice has the potential to serve as a substitute for financial knowledge and capability. However, data from the 2009 FINRA Financial Capability Survey indicate that advice more often serves as a complement to, rather than a substitute for, financial capability: individuals with higher incomes, educational attainment, and levels of financial literacy are most likely to receive financial advice.
Number of Pages in PDF File: 28
Keywords: : Financial planning, Financial capability
JEL Classification: D14, P46, G29working papers series
Date posted: April 26, 2012
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