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Financial literacy and financial advice seeking: Does product specificity matter?

Author

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  • Mazzoli, Camilla
  • Ferretti, Riccardo
  • Filotto, Umberto

Abstract

We study the effect of financial literacy on financial advice seeking. We test the relationship across different measures of the former and the latter, providing a contribution to the existing literature. Overall results suggest complementarity, but when considering product-specific financial literacy and financial advice seeking, a complementary effect emerges for investments and debt, while a substitution effect prevails for insurance and pension products. Financial advising services can therefore compensate for the lack of financial literacy in insurance and pension planning in the short run. Conversely, greater policy efforts are needed for investment and loans, where poor financial literacy translates into a scarce demand for financial advice.

Suggested Citation

  • Mazzoli, Camilla & Ferretti, Riccardo & Filotto, Umberto, 2024. "Financial literacy and financial advice seeking: Does product specificity matter?," The Quarterly Review of Economics and Finance, Elsevier, vol. 95(C), pages 98-110.
    • Handle: RePEc:eee:quaeco:v:95:y:2024:i:c:p:98-110
    DOI: 10.1016/j.qref.2024.03.012
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial literacy; Financial advice; Investors’ protection; Household finance; Financial education;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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