Low-income employees

Abstract

This study investigates the financial literacy of low-income employees, by examining their financial behaviors. Thus, researchers examine the effect that information from formal advisors has on the financial behaviors of low-income employees. In this study, formal advisors include financial plan- ners, bankers, brokers, employers, accountants, insurance agents, and lawyers. Using data from the 2010 Survey of Consumer Finances, researchers find a significant and positive relationship between the use of information from formal advisors and low-income employees’ positive financial behaviors. In other words, low-income employees who use information from formal advisors exhibit better financial behaviors than those who do not.