Self-efficacy, Financial Literacy And Financial Planning Of Urban Residents In China

Family financial planning runs through all stages of the life cycle,and the ultimate goal is to maximize the benefits of household income and expenditure.The development of family financial planning,in addition to being influenced by traditional variables,depends to a large extent on two factors.On the one hand,it comes from a sense of self-efficacy and on the other hand from financial literacy.Self-efficacy refers to the degree of confidence that people can use their skills to accomplish certain work behaviors,reflecting the subjective psychological factors of individuals.Financial literacy refers to the knowledge and skills that consumers have to effectively manage financial resources for the financial well-being of their lifetime.It is an objective ability gained in the long learning of the day after tomorrow.Individual subjective psychological factors and objective financial capabilities together determine whether people will choose to develop a family financial plan.Based on the existing research results and theoretical analysis,this paper puts forward the hypothesis of self-efficacy,the impact of financial literacy on family financial planning,and the self-efficacy and financial internalization mechanism.This paper constructs a self-efficacy variable using the “ Consumer Financial Network Questionnaire” data conducted by the China Finance Research Center of Tsinghua University in 2012.The Logit model and the tobit model are used to study the impact of self-efficacy on family financial planning,considering the model.There is an endogeneity problem of “two-way causality”.The PSM method is used to verify the single causal relationship of family financial planning from self-efficacy,and the results show that it is robust.In order to enrich the self-efficacy and research content of family financial planning,this paper selects the three categories of city category,stock participation and position for heterogeneity analysis.On this basis,this paper further introduces financial literacy indicators and constructs a mediating effect model,based on which to study the relationship between financial literacy and family financial planning,the relationship between financial literacy and self-efficacy,and thus verify the hypothesis proposed in this paper.The study found that(1)self-efficacy has a significant positive impact on family financial planning and financial planning time span.(2)In the first-tier cities,the higher the self-efficacy of residents,the more likely the family is to develop financial planning;the higher the self-efficacy of residents in first-and third-tier cities,the longer the choice of financial planning.(3)For families who are not involved in the stock market,the higher their self-efficacy,the greater the likelihood that the family will make financial planning,and the longer the time to choose financial planning;the self-efficacy of families participating in the stock market There is only a significantpositive impact on the length of financial planning.(4)In non-high-level families,the higher the self-efficacy,the more likely the family is to make financial planning,and the longer the time to choose financial planning;(5)Financial literacy has a significant positive impact on family financial planning.The higher the financial literacy,the more thorough the residents' understanding of the operation of financial markets and their products,thus promoting the development of detailed financial planning for households.(6)Self-efficacy will have an impact on family financial planning through the intermediary effect of financial literacy.