November 13, 2014
Trusting Souls Want Financial Advice
Here’s a conundrum: Americans struggle to save for retirement or reduce their credit card spending. But only about one out of three seeks help with financial issues.
So what lies at the heart of our decisions about whether and when to seek help? Trust.
In the video below, Angela Hung, director of the RAND Center for Financial and Economic Decision Making, describes research showing that people who trust financial institutions – the markets, financial services companies, brokers – are also more likely to ask for advice from a financial adviser or similar professional.
Further, Hung’s research found that people who trust the industry are also “more likely to be satisfied with their financial service provider.” Watch the video for Hung’s explanation of an interesting experiment that explores the circumstances under which people follow the advice once it’s given to them.