Financial Advice: A Substitute for Financial Literacy?
16 Pages Posted: 26 Apr 2012 Last revised: 5 Feb 2014
Date Written: 2012
Abstract
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: Suggested Citation
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