Can financial literacy be a substitute for financial advisers? Evidence from China

This study investigates the influence of financial literacy on the utilization of financial advisers in China, using 2019 data from the China Household Finance Survey and a probit with sample se-lection model. The findings indicate that elevated levels of financial literacy have a beneficial impact on both the demand for and employment of financial advisers. The impact is more sig-nificant among younger or middle-aged individuals with debt and awareness of financial threshold changes. The research also reveals that financial literacy improves information atten-tion and comprehension of risky financial products, resulting in greater demand for and employment of financial advisers.