Study On The Impact Of Financial Literacy On The Allocation Of Financial Assets Of Chinese Residents

With poverty an all-round victory in the battle,into the high quality and economic development in our country,many residents began with his hands to reasonable allocate,deposits to finance the idea of more and more strong,the financial market also got a certain momentum of rapid development,people are constantly looking for various financial products in addition to put money in the bank,under such circumstance,On the one hand,it is necessary to meet the new and continuous demand of residents for financial products and enrich the products in the financial market.On the other hand,it is particularly important to investigate how residents allocate their assets and what factors will affect their choice of allocation.An important indicator that can reflect residents’ financial ability and how to participate in financial activities is the level of financial literacy.It is particularly important to evaluate and analyze this ability and then discuss the reasons for the impact of financial literacy on the allocation of family assets.This paper analyzes the data of China’s Household Tracking Survey(CFPS),and evaluates the financial allocation of households from the following aspects: whether households have risky assets,the ratio of risky assets in households to total household assets,and the total value of financial assets in households.Probit and Tobit model analysis family participation in financial markets and financial risk assets ratio,structural risk attitude as intermediary variables at the same time,through the intermediary effect model analysis risk attitude in the financial literacy of the influence of family financial risk asset allocation plays an intermediary role,then the robust test and the analysis of the heterogeneity.The main research results of this paper are as follows: families with different financial literacy have different choices.Among families with higher financial literacy level,venture capital is generally chosen and the proportion has a positive relationship with the total value of financial assets.The level of financial literacy has a direct impact on the probability of risk investment,and also enables families to participate in the financial market more deeply to a certain extent.When these results are confirmed,in order to enable residents to effectively manage private assets and improve their happiness in life,it is necessary to improve residents’ financial quality education nationwide,and increase residents’ ability to participate in the financial market,so that residents can make reasonable and effective choices.After summarizing the above,this paper draws a conclusion and gives some suggestions: for the government,it should strengthen the level of residents’ financial literacy and strengthen financial education,so as to continuously promote residents’ attention to financial education.In the financial industry institutions,we should continue to develop,improve and establish platforms to share and communicate resources with each other,increase the professional and moral training of industry personnel,and constantly allow residents to improve their financial skills in various ways.Residents should also continue to participate in various ways to improve financial literacy,correct wrong views,and constantly enhance the knowledge level of residents,which can also strengthen the ability of residents to prevent fraud.