Financial adviser users and financial literacy

Authors

  • Bhanu Balasubramnian College of Business Administration, The University of Akron
  • Eric Brisker College of Business Administration, The University of Akron

DOI:

https://doi.org/10.61190/fsr.v25i2.3217

Keywords:

Personal financial planning, Financial advisers, Financial planners, Financial literacy, Instrumental variable models, Propensity score matching

Abstract

Using the 2012 National Financial Capability Study we determine what demographic characteristics are associated with individuals that use financial advisers and whether financial advisers have any impact on the financial literacy of their clients. We consider five types of financial advisers: Debt Counselors, Savings or Investment, Mortgage or Loan, Insurance, and Tax Planning. We find a significant increase in the use of financial advisers over the past decade. We also find that Savings or Investments advisers have the largest positive impact on the financial literacy of their clients, followed by Mortgage or Loan and Insurance advisers, even when controlling for financial education and potential endogeneity issues.

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Published

2016-06-30

How to Cite

Balasubramnian, B., & Brisker, E. (2016). Financial adviser users and financial literacy. Financial Services Review, 25(2), 127–155. https://doi.org/10.61190/fsr.v25i2.3217

Issue

Vol. 25 No. 2 (2016): Summer 2016

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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