Financial Advice: A Substitute for Financial Literacy?

16 Pages Posted: 26 Apr 2012 Last revised: 5 Feb 2014

Date Written: 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.

Keywords: Financial planning, Financial capability

JEL Classification: D14, P46, G29

Suggested Citation

Collins, J. Michael, Financial Advice: A Substitute for Financial Literacy? (2012). Financial Services Review, Vol. 21, No. 4, 307-322, Available at SSRN: or

J. Michael Collins (Contact Author)

Follette School of Public Affairs ( email )

1180 Observatory Drive
Madison, WI 53706-1393
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics