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2022 Annual Conference

May 19–21, 2022

Sheraton Sand Key, Clearwater Beach, FL, US

Proposal authors can use this tool to see where they have been placed in the program agenda for an Oral or Poster Session.

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Confirm your place in the schedule by going to the ACCI Presenter Confirm Google Sheet and marking your session with the name and email address of the author who will be attending and presenting. Each presentation must have a separate paid registraint. Contact the ACCI Office immedicately by email at admin@consumerinterests.org to report a conflict or if you have questions. Please be sure to reference the session title(s), date(s), and time(s) if you contact us.

C2a A Cross-Racial Examination of the Antecedents to Financial Help-Seeking

Friday, May 20, 2022 at 10:45 AM–12:15 PM EDT
Room 2
Key Words

financial planner, race, ethnicity, risk, trust, help-seeking, financial literacy

Short Description

The use of a financial planner has been shown to be advantageous to one’s economic well-being, but the determinants of who seeks financial help are not well understood. Long-standing and substantial wealth disparities exist between families in different racial and ethnic groups. Similarly, the rate of financial planner usage is strikingly low among Black and Hispanic families. Through the lens of the financial help-seeking framework, we conduct a cross-racial examination of the role trust, financial literacy, and risk measures have on financial planner utilization. This study uses data from the 2019 Survey of Consumer Finances. In a binary logit model, the dependent variable distinguishes respondents who have sought financial help from a professional. In the multinomial regression, the dependent variable has four categories: non-professional, professional, both, and neither source. Results indicate Blacks are less likely than Whites to utilize a professional for investment decisions. We also find Blacks may prefer to seek a source of information as compared to no source at all, but that source has lower odds of being a non-professional when controlling for income and education. Researchers and policymakers should be informed of the role various risk and financial literacy measures play in financial help-seeking behavior.

Submitter

Eric Ludwig, Kansas State Univeristy

Authors

Eric Ludwig, Kansas State Univeristy
Megan McCoy, Kansas State University
Stuart Heckman, Kansas State University
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