FINANCIALIZATION OF THE ECONOMY AND THE NEED FOR PERSONAL FINANCE ADVISORY SERVICES

Abstract

Financialization on of households is a result of the growing role of financial systems and instruments
in the economy. The increased role of financial phenomena in financial and non-financial decisions
taken by households is not proporsal onal to capabilities es of their perception on and understanding by
households which possess basic knowledge in fi nance. The missing link between institutions and
financial markets off ering more complex financial solution ons and the consumer may be a financial
advisor who can perform many important roles with respect to households. The aim of this article
is to present financialization on of the economy and households and the role that can be played by
financial advisors in decreasing the imbalance of information on between the consumer and fi nancial
institution ons, as well as the lack of symmetry in understanding financial information on by the consumer.