With a Little Help from My Friends (and My Financial Planner)

Despite the tremendous implications that financial decisions have for socioeconomic well-being, the study of financial decision-making has been left largely to economists. This paper places this topic firmly within sociological terrain and demonstrates that the search for financial information is embedded within broader systems of social inequality. Analyses of data from the 1998 Survey of Consumer Finances reveal that social networks are by far the most frequently used source of saving and investment information; however they are used most often by those with the least wealth. Wealthier households are more likely to turn to paid financial professionals and to certain forms of media for saving and investment information. Results indicate that those at the top of the socioeconomic ladder do gather information from multiple sources possibly to minimize the risk of making a poor decision; yet as socioeconomic status increases, networks are decreasingly likely to be among the sources consulted.