A Conceptual Framework of Financial Advice-Seeking and Short- and Long-Term Financial Behaviors: An Age Comparison

The purpose of this study is to construct a conceptual framework and examine the relationships between perceived financial capability, financial stressors, financial advice-seeking behavior, and short-and long-term financial behaviors. Furthermore, this study examines whether there exists an age difference in these relationships. Using the 2012 National Financial Capability Study, this paper suggests that perceived financial capability is positively associated with advice-seeking behavior, and short- and long-term desired financial behaviors. Further, financial stressors are negatively associated with financial behaviors, but positively associated with financial advice-seeking behavior. Seeking professional advice is positively associated with short- and long-term financial behavior and mediates the relationship between financial stressors and financial behaviors. A positive association is observed between short-term and long-term financial practice. Moreover, socio-demographic characteristics are also examined, including observations about age differences in the proposed relationships. Implications for consumers, financial practitioners, and policymakers are also discussed.