Financial Education and Consumer Financial Planning: Evidence from China

Abstract

The purpose of this study is to examine the impacts of financial education on consumer financial planning. Using data from the 2012 Household Consumer Finance in China’s Urban Residents, this study conducts logistic regression to investigate the associations between financial education and consumer financial planning. The results indicate that financial education is positively associated with consumer financial planning. Moreover, the money and time input in financial education has also been proven to have positive effects on consumer financial planning. The findings suggest that the money input in financial education has played a more vital role in improving consumer financial planning than the time input in financial education. The results imply that the improvement of financial education is conducive to improving consumer financial planning. Furthermore, the results also have implications for policymakers to take measures in enhancing financial support for consumer financial education.

Consumer financial education and risky financial asset holding in China

“…Financial education increases financial literacy (Lusardi & Mitchell, 2007;Wagner, 2019;Xiao & Porto, 2017) and encourages desirable financial behaviors among students (Lyons, 2008;Peng et al, 2007) and employees (Bayer, Bernheim & Scholz, 2009;Bernheim & Garrett, 2003). In addition, financial education is very important for saving decisions and retirement planning (Chen, Zhang & Ma, 2020;Lusardi,2008;Lusardi & Mitchell, 2007;Skimmyhorn,2012).…”

The General Financial Education in China: Evidence From Ratio of Undergraduate Financial Education Majors in Universities

“…Aside from the students, previous research has proven a positive relationship between the efficiency of using money and the financial knowledge adults have 29,30 and showed that financial education had a positive effect on long-term behavior 31 . When it comes to making consumption, in the planning part, because of the lack of an outside distribution's combined effect 32 , financial education positively correlates with consumer planning 33 . In the evaluation part, because of the perception side that distributes personal value judgment 34 , many consumers who lack financial literacy make decisions that do not maximize their utilities 35 .…”