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ChatGPT, Help! I Am in Financial Trouble

Author

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  • Minh Tam Tammy Schlosky

    (College of Business and Management, University of Illinois Springfield, Springfield, IL 62703, USA)

  • Serkan Karadas

    (College of Business and Management, University of Illinois Springfield, Springfield, IL 62703, USA)

  • Sterling Raskie

    (Gies College of Business, University of Illinois Urbana-Champaign, Champaign, IL 61820, USA
    Blankenship Financial Planning, New Berlin, IL 62670, USA)

Abstract

This study examines the capability of ChatGPT to provide financial advice based on personal finance cases. We first write our own cases and feed them to ChatGPT to get its advice (recommendations) on them. Next, we assess the quality and the validity of ChatGPT’s recommendations on these cases. We find that ChatGPT serves as a suitable starting point, but its recommendations tend to be generic, and they often overlook alternative solutions and viewpoints and priority of recommendations. Overall, our analysis demonstrates the strengths and weaknesses of using ChatGPT in personal finance matters. Further, it serves as a helpful guide to financial advisors, households, and instructors of personal finance who are already using or considering using ChatGPT and want to develop a suitable understanding of the benefits and limitations of this new technology in addressing their professional and personal needs.

Suggested Citation

  • Minh Tam Tammy Schlosky & Serkan Karadas & Sterling Raskie, 2024. "ChatGPT, Help! I Am in Financial Trouble," JRFM, MDPI, vol. 17(6), pages 1-39, June.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:6:p:241-:d:1412445
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    References listed on IDEAS

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    4. Oehler, Andreas & Horn, Matthias, 2024. "Does ChatGPT provide better advice than robo-advisors?," Finance Research Letters, Elsevier, vol. 60(C).
    5. Ko, Hyungjin & Lee, Jaewook, 2024. "Can ChatGPT improve investment decisions? From a portfolio management perspective," Finance Research Letters, Elsevier, vol. 64(C).
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    Cited by:

    1. Chiu, Ya-Ling & Gao, Xuechen & Liu, Hung-Chun & Zhai, Qiong, 2025. "Financial literacy of ChatGPT: Evidence through financial news," Finance Research Letters, Elsevier, vol. 78(C).

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