Research brief contributed by Keith Moreland
The most exciting findings of my paper1 are that obtaining financial advice is associated with improved (more productive) financial behaviors, such as avoiding bank overdrafts, paying credit card balances on time and in full, establishing a retirement account, and checking credit scores/reports. Further, this association is slightly stronger for individuals with somewhat lower levels of financial knowledge.
The implications to financial advisors are that providing financial advice and counselling, even at – or perhaps especially at – basic levels – can be associated with tangible benefits in the form of better personal financial decisions by, and improved financial wellbeing for, their clients and other individuals in their communities. This advice can result in improved decision making in various life stages including students and parents planning to finance higher education, individuals looking to start a business, individuals considering a first home purchase, and retirees and those planning for retirement, to name a few.
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Download the research (available to AFCPE members or by request from the authors): Keith A. Moreland (2018) Seeking Financial Advice and Other Desirable Financial Behaviors (JFCP), 29 (2).