Financial Anxiety, Financial Literacy and their Relationship with Financial Advice Seeking: A Literature Review

Behavioural finance is study of investors’ psychology which affect their investment decisions. To seek financial assistance from a consultant is one such behavioural aspect of investors. Financial anxiety and financial literacy are psychological factors affecting the decision regarding financial advice seeking. Financial anxiety is people's attitude towards their personal finances. Financial literacy, on the other hand is defined as basic knowledge regarding financial concepts, markets and instruments. This paper presents review of the literature related to financial anxiety, financial literacy, financial advice seeking, relationship of financial anxiety with financial advice seeking and relationship of financial literacy with financial advice seeking. The paper concludes that a number of researches ended with the definitions of financial anxiety and financial literacy while only a few studies have focused on the relationship between financial anxiety and financial literacy. Lastly, it was also found that limited studies were conducted to discover the association between financial anxiety and financial advice seeking.