Research On The Debiasing Of Household Financial Behavior Based On Behavioral Finance

According to the "China Household Financial Market Analysis Report 2018",the number of Chinese households is increasing year by year.It is estimated that by 2020,the number of households will reach 452 million,and the scale of family financial assets will be expanded to 145 trillion yuan.In addition,the average family investment assets increased from 170,000 yuan in 2011 to 455,500 yuan in 2018,with an average compound annual growth rate of more than 15%.Therefore,how to manage the idle wealth has become a problem that many Chinese families are currently considering.The mainstream financial theory used to guide household finance assumes that people are rational.However,in the real world,human rationality is not infinite.The existence of limited cognition and limited self-control makes the family unable to deal with information objectively,fairly and unbiasedly in the process of financial management,which leads to the failure of maximizing utility in the financial management.Therefore,based on the theory of behavioral finance,this paper studies the limited self-control and limited cognition in the household financial management,aiming at proposing relevant strategies on the debiasing of household financial behavior.Based on the theory of limited self-control and limited cognition,this paper designs a questionnaire of household financial behavior,and makes statistical analysis of the limited self-control and limited cognition in household financial behavior by SPSS software.The results show that:(1)There are significant characteristics of limited self-control and limited cognitive in the household financial management.(2)Households of different ages,academic qualifications,financial education,and income were significantly different in their limited self-control and limited cognitive performance.The older the subject,the more obvious the limited rational performance of the respondents in the process of financial management;the higher the academic qualifications,the weaker the limited rational behavior of the surveyed households in financial management;the performance of the respondents who have received systematic financial education in the financial management process is more rational;with the increase in the annual disposable income of the family,the irrational behavior of the households is more obvious.Finally,based on the theory of the debiasing of household financial behavior and the investigation of household financial behavior,this paper puts forward relevant strategies on how to debias the limited self-control and limited cognition in the process of household financial management.Families can eliminate financial deviation caused by limited self-control by establishing thumb rules,controlling financial environment and using external forces.Before correcting cognitive biases,families should first understand them.In the process of financial management,families should set up correct financial management concepts,learn financial management expertise,and realize decentralized investment.