Analysis Of The Impact Of Education And Financial Literacy On Household Financial Asset Allocation

The 2017 National Financial Work Conference made important arrangements for financial work,emphasizing the important role and status of finance in socio-economic and national security.The family is the most important micro-subject in society,and family financial behavior is important for the overall development of the economy and the economy Operation has a significant impact.Campbell,president of the American Financial Association,has pointed out that in order to maintain and increase the value of assets,families need to hold a certain percentage of risk assets and participate in financial markets.More and more studies have shown that financial literacy has a direct and important impact on family financial behavior,and financial literacy has become the focus of attention in the field of family financial research as well as financial behavior.In addition,education as an individual characteristic variable is often considered as an influencing factor in household financial behavior research.Limited market participation is a more realistic and serious problem facing China.The 2017 China Household Finance Survey(CHFS)data shows that China 's financial market participation is too low compared with developed economies such as Europe and the United States,and household financial asset allocation is extremely unreasonable.At present,with the open collection of CHFS data,domestic literature has conducted empirical research on household financial behavior in China,but most studies have considered the role of financial literacy alone and education has emerged as a control variable.However,through empirical research,this article finds that education not only directly affect family financial behavior,but also indirectly affect it through financial literacy.In order to make a more accurate analysis of the relationship between education,financial literacy and household financial asset allocation,this paper,based on the 2017 China Household Financial survey data(CHFS),draws a more accurate conclusion by establishing a moderated intermediary model.Based on Rooij's definition of financial literacy,based on the family's answers to the three basic financial concepts of interest rate,inflation and risk,this paper constructs financial literacy indicators,obtains financial literacy index by factor analysis method,and conducts robustness test by the method of score summation.The statistical results show that most families in China have low financial literacy and are in different groups There are differences between the body.Referring to the classification of household financial assets by the world economic cooperation organization(OECD),this paper divides China's household financial assets into seven categories: cash deposits,equity assets,commercial insurance,financial management,loans,funds and other financial assets,and then divides China's court financial asset allocation types into five categories by rapid clustering,namely,cash deposit dominated households and commercial insurance The dominant family,the equity oriented family,the financial oriented family and the lending oriented family,while different types of financial asset allocation have differences under different levels of education and financial literacy,the dominant proportion of lending is not significantly different between different levels of education and financial literacy,and the dominant proportion of cash deposit decreases with the improvement of education and financial literacy The proportion of other types increased with the improvement of education and financial literacy.In order to further analyze the role of education and financial literacy,we use a moderated intermediary model to analyze the impact of education and financial literacy on household financial asset allocation behavior.The results show that education directly affects and influences the family's choice of cash deposit and other risky assets through financial literacy.The higher the education level,the higher the financial literacy.Compared with choosing the type of cash deposit asset allocation,the family is more likely to choose the commercial insurance leading type,the equity asset leading type and the financial product leading type of risk assets with higher income At the same time,the family income level will positively regulate the direct effect of education and indirect effect through financial literacy.The higher the income level,the greater the direct and indirect effect of education.