Connect * Empower * Impact

2019 AFCPE® Research and Training Symposium

AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Friday, November 16th, 2018
Category: Disability
Disability Type, Financial Capability, and Risky Asset Holding
Risky asset holding is considered an indicator of financial well-being since risky asset holders are likely to accumulate more wealth than those who do not. Adults with disabilities are less wealthy and less financially capable than other adults in the U.S. but some of them still have potential for seeking long term financial planning services. The purpose of this study is to examine whether disability type and financial capability are associated with risky asset holding of adults with disabilities. Using data from the 2015 National Financial Capability Study, we find that adults with different types of disabilities have different chances of holding risky assets. Results of a bivariate logistical model show that, compared to people who are deaf, people who are blind or have difficulties in dressing and bathing are more likely, while people who have serious difficulty concentrating or a work disability are less likely, to hold risky assets. After controlling for financial capability, income, and other variables in the logistical model, people with a work disability are still less likely to hold risky financial assets than the deaf (reference category). In addition, two financial capability variables, objective financial knowledge and desirable financial behavior, are positively associated with risky asset holding after controlling for other factors. Some disability and financial capability factors showed differences in risky asset holding when the lower income and higher income subsamples were examined.
Implications for Practitioners
People with disabilities are the largest minority in the U.S. at 19% of the population. They face barriers to financial stability such as a low or unstable income, thinner margin of health, and the extra costs associated with living with a disability such as medical care, medication, and medical equipment This study explored the association between different types of disabilities and risky asset holding. Implications for financial practice are: 1) Earning ability is a key variable; 2) Financial knowledge positively impacts risky asset holding; 3) Some disabilities present more challenges than others; and 4) Leverage opportunities under the ABLE Act.