Research On The Influence Of Financial Literacy On Family Financial Market Participation Behavior

With the rapid economic development,the term “inclusive finance” was proposed to make financial services more accessible to the general public,and the residents also deeply feel the benefits of financial services brought by “inclusive finance”.With the deepening of the economic system reform,the household income also increases,the ability and enthusiasm of households to participate in the financial market investment have been greatly improved,and the way of households participating in the financial market has also changed.The investment of household assets is gradually transferred from bank deposits to real estate,stocks,bonds,funds and other fields,so as to realize the diversification of household assets investment.The change in the direction of household asset investment also leads to more diversified financial products and a more complete financial market system,thus improving the efficiency of capital allocation in the financial market,increasing the participation of households in the financial market and reducing the cost of financial services.However,there are still many problems in China’s household financial market participation,such as the limitation of financial market participation,the “overconfidence” of investors,and the undiversified asset types.Therefore,to study the participation behavior of Chinese family financial market is to study how the family participates in the financial market and how to measure the degree of participation.By studying the influencing factors of family financial market participation,it will be helpful to understand the decision-making mechanism of family financial market participation,provide reasonable investment Suggestions to families,and guide families to establish a correct investment concept.This paper focuses on the impact of financial literacy on family financial market participation.This paper firstly sorts out the existing research results and finds that most of the studies take factors such as residents’ education level,marriage,health status as control variables,and most of the variables of financial literacy are replaced by financial knowledge level.This paper divides financial literacy into subjective and objective aspects,and studies the influence of financial literacy on the breadth and depth of financial market participation respectively from these two aspects according to the education level.So this article to residents affected by the education level between the degree of this human capital as the breakthrough point,combined with the subjective and objective financial literacy,respectively introduce the subjective financial literacy and the degree of interaction and objective financial literacy and education of the interaction of the item to verify that the two main explanation variables and the influence of the interaction of family financial market participation behavior.In this paper,CFPS data from China household finance tracking survey in 2014 were selected,and the asset portfolio theory and life cycle theory were used as the basis to provide theoretical support for the following empirical research.Then probit and tobit models are used to conduct empirical research on the breadth and depth of household financial market participation.The empirical results show that both subjective financial literacy and objective financial literacy have a significant impact on the participation in the financial market of households.At the same time,it is concluded that the role of educational background in each educational stage is different,but in general,it is consistent with the current situation of financial market participation with low academic qualifications in China.In addition,the effect of subjective financial literacy on family financial market participation is greater than that of objective financial literacy,and the interaction term between subjective financial literacy and education level is more significant.Finally,combining the empirical results,from family subjective and objective financial literacy and improve the level of residents’ record of formal schooling education,enhance the diversity and innovative financial products,and improve the level of household wealth and income for family financial markets to participate in three aspects,such as provide advice,for the development of financial markets and improve the proposed own view.