The Way To Use Law And Economics Theory On Financial Planning Of Working Families

Researching from the available information on family financial management behavior, main standpoint is expatiated on methods, financial strategies and financial management skills. The way to use law and economics theory on financial planning of working families is still blank. In this paper, using the working families as the representative sample, relying on law and economics theory, author applies the law and economics theory to research financial planning protection for working families, and make an innovative research between financial planning behavior and legal systems.Working families was chosen as the research sample, because in many types of families, working families have a typical significance.Such families have a basic of relatively fixed salary and daily disposable income, tradition of careful calculation and strict budgeting, desire of increase there income, external relations and information communication environment of working place, even social influence and a basis of a relatively stable life. Therefore, financial development of working families is capable to lead and influence the development of financial management. From the point of development of financial market, the financial planning market was active relatively. Financial institutions are everywhere in our country. Particularly bank in neighborhood, which is close and convenient to the residents. Households often save money into a bank especially when they have spare ones. At the same time they will get several of financial product information of that bank. With the development of our stock market, the positive of stock investment and bonds buying are keeping rising, total number of participants is increasing. It can be seen that is a good topic to research legal system on choosing the working families as the research sample, the financial planning as the view point of view.This paper includes five chapters:Chapter 1, introduction. Clarify the background, purpose and meaning at first. Then arrange, summarize, make assessment and forward thinking of main results at home and abroad. Three innovation ides is proposed in this part: First, innovative thesis topic; Second, innovative research perspective; third, new areas of family financial planning system is proposed.Chapter 2, general analysis of family financial management. The so-called financial management is the management and operation of property. Family Financial Planning has five characteristics: purpose, planning, supportability, long-term, and enjoy. Financial planning of working families in our country experienced the processes of scratch, less to more, and single approach to the multiple ways, and is optimistic about their financial prospects.Chapter 3, status and the influencing factors of financial planning in working families in China. In the current situation of working families, they put more concentration on financial management, but the trouble of fewer financial channels and lower financial capacity is still there. In the current situation of financial services which provided by financial institutions, banking financial services is in its infancy, several problems of investment securities and insurance business need to be further developed. In the situation of foreign financial institutions, they came into China, and have a nice development. Main factors to financial planning market are property rights, financial management conception, legal system and financial intermediation.Chapter 4, inspection of financial planning practice of the law in China. The effect of the law is inspected from the legislation, law enforcement, and operation of financial market. Deficiencies or shortcomings of legal factors are founded in that way, and basis the following researching of countermeasures.Chapter 5, advice of consummating of legal system on financial planning in working families. First, strengthen the legal system of financial management business carried out by institutions, including a) financial institutions must involved in the legal system directly, b) improve the credibility and authority of financial supervision law, and c) financial institutions should establish and complete internal rules and regulations. Second, increase the Effects of legal supervision of Financial regulators, including a) establish a faultless legal system for financial supervision, b) improve the credibility and authority of financial supervision law, and c) increase the legal penalties of financial regulation. Third, establish financial planning system of working families, including a) master the formation mechanism of financial planning system in working families, b) play a formal and informal system role of financial planning system in working families, c) make the arrangements to promote the development of financial planning system in working families.