Document Type
Article
Date of Original Version
2016
Department
Human Development and Family Studies
Abstract
This study examines potential effects of overconfidence on financial advice usage. Financial literacy overconfidence is defined as the gap between consumers’ subjective and objective financial knowledge. Using a representative national survey, the result shows that over 11 percent of respondents display financial literacy overconfidence: They score higher than the average on perceived financial knowledge but are unable to answer three or more financial literacy questions correctly. These overconfident consumers are less likely to seek professional financial advice in saving/investment and mortgage but more likely to exhibit demand for advice related to debt counseling and tax planning.
Publication Title, e.g., Journal
Jounral of Financial Service Professionals
Volume
70
Issue
4
Citation/Publisher Attribution
Porto, N. * Xiao, J. J. (2016). Financial literacy overconfidence and financial advice seeking. Journal of Financial Service Professionals, 70(4), 78-88.
Available at: https://www.researchgate.net/publication/323856184_Financial_literacy_overconfidence_and_financial_advice_seeking
Author Manuscript
This is a pre-publication author manuscript of the final, published article.
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