Financial Cognition,Personality Traits And Family Consumption Structure

Since the reform and opening up,our country’s economy has developed rapidly,people’s income level and life happiness have been greatly improved.However,there is a serious imbalance in our country’s economic development structure.The average consumption contribution rate in the past eight years is only 51.65%,which is 20 percentage points lower than the world average.How to improve consumption level to stimulate economic growth is gradually becoming a problem that needs to be faced and solved in the future.People have different choices for different consumption behaviors.Only by determining the main factors affecting different types of household consumption expenditures,can corresponding policies be formulated to guide consumers to increase consumption level reasonably,so as to expand domestic demand and promote the steady and healthy development of national economy.From the perspective of individual psychology,this paper studies the influence of financial cognition,personality traits and the synergistic effect on the structure of household consumption.First,using the data of the National Bureau of Statistics,to explore the changes in the disposable income of urban and rural residents and the proportion of various consumption expenditures in our country in the past ten years.Then,using the 2018 China Family Panel Studies data,a descriptive statistical analysis was carried out from the three aspects of the personality traits,individual characteristics and family characteristics of the family financial leader.And through this data,the OLS model is used to conduct a large sample empirical regression analysis on the relationship between financial cognition,personality traits and household consumption structure.Finally,the interaction term of financial cognition and personality traits was used to further verify whether the two would have a synergistic effect on household consumption structure.In variable setting,based on the perspective of psychological account,this paper divides the household consumption structure into necessary living expenditure account,construction and development expenditure account,emotional maintenance expenditure account and enjoyment and leisure expenditure account.Through the cognitive module questions of CFPS questionnaire,financial cognitive variables are objectively measured by factor analysis method,and the "Big Five" personality classification method commonly used in research is used to measure personality characteristics.The main conclusions of this paper can be divided into the following aspects:First,the improvement of financial cognitive will help to increase the level of household consumption expenditure,and the financial cognition index is more explanatory.Second,the "big five"personality traits have different effects on consumption expenditures in different mental accounts.Neuroticism,openness,extroversion and agreeableness are all positive factors that encourage families to increase consumption expenditures of different categories,which is conducive to increasing family consumption level,but conscientiousness will inhibit the family’s hedonic and leisure consumption expenditure.Third,the interaction items of financial cognition and neuroticism,openness,extroversion,agreeableness,and conscientiousness will positively affect household consumption expenditure.Improving financial cognition can also promote personality traits that are conducive to consumer market participation,and improve personality traits that are not conducive to consumer market participation.