Race, Trust, and Retirement Decisions

Martin, Terrance K.

doi:10.2139/ssrn.2358737

Cited by 6 publications

(9 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First, there was no evidence that the race of the respondent influenced the rating given to any financial planner. This is contrary to the body of literature that suggests that Black consumers are less trusting than White consumers when making financial-related decisions (LaChance & Tang, 2012;Martin et al, 2014). The difference in the current study could be, in part, related to the specific sample used and its composition, the hypothetical nature of the experiment, the planners' profiles (e.g., age, achievements, tenure, etc.…”

Section: Discussioncontrasting

confidence: 78%

“…When it comes to trust and race, it has been well documented that certain consumers, particularly those who have experienced discrimination and historical biases, have less trust in the financial industry (Alesina & La Ferrara, 2002; Benkert et al, 2008; Boulware et al, 2003; Halbert et al, 2006; Mainous et al, 2006). White consumers tend to display higher levels of trust in institutions when compared to those from non‐White groups (Martin et al, 2014). Moin et al (2017) found that Black investors were less trusting than White investors in the U.K.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Diversity in financial planning: Race, gender, and the likelihood to trust a financial planner

2021

View full text Add to dashboard Cite

This study used an experiment to investigate the association between race, gender, and trust as it relates to working with a financial planner among a sample of Black and White MTurk respondents. Results revealed neither a respondent nor a financial planner's race was related to the level of trustworthiness perceived by a respondent. However, respondents were more likely to trust women financial planners than men financial planners. In addition, women respondents were more likely than men respondents to trust financial planners. Implications of this study are important in understanding the challenges and opportunities faced by underrepresented populations in succeeding as a financial planner.

show abstract

Section: Discussioncontrasting

confidence: 78%

Section: Literature Reviewmentioning

confidence: 99%

Diversity in financial planning: Race, gender, and the likelihood to trust a financial planner

2021

View full text Add to dashboard Cite

show abstract

“…Family life educators can help by reassuring individuals that there are effective ways to cope with discomfort related to anxiety resulting from having financial conversations, such as reflecting on locus of control and using one’s partner to engage in dyadic coping strategies (Falconier & Epstein, 2011). If practitioners do not acknowledge this potential source of anxiety, this could lead to further alienation with clients of color (Martin, Finke, & Gibson, 2014).…”

Section: Discussionmentioning

confidence: 99%

“We Don’t Talk About That”: Exploring Money Conversations of Black, Hispanic, and White Households

White¹,

McCoy

Watkins

et al. 2021

Family & Consum Sci Res J

View full text Add to dashboard Cite

Communication around finances is essential to relational satisfaction and the acquisition of financial skills. Nevertheless, people avoid financial discussions. Using data from the National Longitudinal Survey of Youth (n = 8,006), this study explored how race/ethnicity relates to financial discussions through the lens of capital theory. Findings show that Black and Hispanic households had the lowest rates of financial discussions. When discussions did occur, the odds of them happening were higher with friends and lower with spouses/partners or family. Family and consumer science professionals can use the results to encourage financial communication in multiple types of relationships and households.

show abstract

“…Although Gronk is fantastic at financial management and should be held as a role model and a method for increasing financial self-efficacy, he is a professional athlete, not a professional financial advisor, and may miss some of the nuances that are unique to individual financial plans (Durkee, 2018). Many athletes could benefit from the services of financial planners, but lack of trust can be a barrier to athletes seeking and acquiring advice (Martin et al, 2014). A visible partnership between universities and the financial planning industry to incorporate financial planning courses into college athlete's curriculum may help build trust levels and allow athletes to become more discerning consumers of financial planning services beyond graduation.…”

Section: Discussionmentioning

confidence: 99%

Investigating the financial overconfidence of student-athletes

McCoy

White

Love³

2019

SBM

View full text Add to dashboard Cite

Purpose There is a paucity of empirical research that explores the financial well-being of collegiate student-athletes. The purpose of this paper is to investigate the key aspects of financial well-being (e.g. financial knowledge, financial self-efficacy and finance-related stress levels) of varsity athletes at US colleges and universities. Design/methodology/approach The authors used data from the National Student Financial Wellness Study. The data were analyzed using general linear regression models. Findings The findings suggest student-athletes have lower financial knowledge than students who are non-athletes. Despite their lower levels of financial knowledge, these student-athletes report higher levels of financial self-efficacy. Furthermore, even when controlling for scholarship funding, student-athletes reported lower levels of financial stress than their counterparts. One could interpret this as student-athletes having a false sense of confidence in their money management behaviors. This overconfidence can impact many areas of their overall financial well-being. Alternatively, non-athletes may not be as financially confident as they should be. Research limitations/implications This study could be replicated with stronger measures (e.g. Financial Self-Efficacy Scale), with the inclusion of subjective financial knowledge measures, comparing the impact of demographic variables. As, most financial constructs have gender differences (Farrell et al., 2016) and race differences (Amatucci and Crawley, 2011) and depend upon college major (Fosnacht and Calderone, 2017). Another limitation of this study is the small percentage of student-athletes, a common problem with research in this area. Further research is also needed to unpack the finding that self-efficacy decreases at higher levels of financial knowledge. Practical implications It is evident that college students (athletes/non-athletes) need financial education. For universities and college coaches, this study could be used as a rationale for providing financial education for their athletes. The addition of financial courses could be used as a recruiting tool for collegiate coaches and benefit the university. Requiring financial education could also benefit universities long term as it may potentially increase the donor possibilities by alumni. As a final note, it is important that financial courses figure out ways to improve financial self-efficacy alongside financial knowledge, as findings suggest both are integral to decreasing financial stress. Social implications Less than 4 percent of universities in the USA require students to take a personal finance course (Bledsoe et al., 2016). If more universities included personal finance as a graduation requirement and did more to engage student-athletes (and non-athletes) in financial planning, then the average level of financial knowledge would likely improve on campuses across the USA. In addition, increasing young adults financial self-efficacy could improve financial stress which is linked to mental health and physical health. Originality/value This study provides the first empirical look into the financial well-being of collegiate student-athletes across the USA. Although there are many benefits to participation in college sports, student-athletes face additional time pressures and a predisposition to clustering around certain majors. Findings suggest that collegiate athletes need additional support around their financial literacy and non-athletes may need support developing financial self-efficacy. These two findings should be used by academic institutions and athletic departments to determine how to encourage financial health in their student-athletes and general student body.

show abstract

Race, Trust, and Retirement Decisions

Cited by 6 publications

References 35 publications

Diversity in financial planning: Race, gender, and the likelihood to trust a financial planner

Diversity in financial planning: Race, gender, and the likelihood to trust a financial planner

“We Don’t Talk About That”: Exploring Money Conversations of Black, Hispanic, and White Households

Investigating the financial overconfidence of student-athletes

Contact Info

Product

Resources

About