Academy of Financial Services
It is often the case that a client’s desire to help others through the giving of their money (charitable donations) and time (volunteer hours) is very strong, especially in America. According to the Almanac of American Philanthropy, the U.S., is the leading nation in charitable giving. According to the Charities Aid Foundation, the U.S. has the second highest volunteer score in the world. But, not every client prioritizes giving as an important goal in their financial plan. Why do some clients give, while others do not? This study explores the concept of self-efficacy empirically, showing that those with higher self-efficacy are associated with a higher probability of helping behavior (e.g., giving money or time), as predicted by both Social Cognitive Theory and an adapted Theory of Planned Behavior. Given this association, a planner can better predict and incorporate into a comprehensive financial plan their client’s charitable intention through assessing their client’s general self-efficacy.
Author(s): Shane Enete, Stuart Heckman