Financial Attitude, Knowledge, Investment Behaviour and Satisfaction Among the Clients of Comprehensive Financial Planning Services

Abstract

ABSTRACT We investigate whether and how financial planning (FP) services affect the clients’ financial behaviour and satisfaction through the changes in financial attitude and knowledge. Our sample includes 216 clients for whom an independent FP firm performed all six steps of comprehensive FP from April 2012 to February 2015 in Korea. Our results indicate that attitude towards FP, financial knowledge, and satisfaction improved after FP services were completed. Additionally, clients reduced discretionary expenses and increased savings and investments by almost 20 per cent of median income. Positive behavioural changes are attributed to the changes in financial attitudes, but not to the changes in financial knowledge, which are instead related to client satisfaction. Our results support the role of independent financial planners in improving the clients’ financial behaviour and satisfaction, which can lead to a sustainable relationship between FP professionals and their clients.