The Impact of Financial Literacy Dimensions on Household Financial Vulnerability in China

Linxi Shi; Ying Lv; Tao Li

doi:10.54691/cje4yc45

Authors

Linxi Shi
Ying Lv
Tao Li

DOI:

https://doi.org/10.54691/cje4yc45

Keywords:

Financial Literacy; Konwledge; Attitudes; Skills; Household Financial Vulnerability.

Abstract

The global economic downturn and instability in financial markets have significantly impacted the financial welfare of countless people. Moreover, COVID-19 has significantly impacted the financial of household in China and led to financial vulnerability. Addressing household financial vulnerability has become increasingly urgent. Grounded in family resource management theory, this study investigates the impact of financial literacy dimensions-namely, knowledge, attitudes, and skills-on household financial vulnerability within the Chinese context. Leveraging the robust database from the 2019 China Household Finance Survey (CHFS) and STATA statistical analysis software, this research reveal a negative association between financial literacy dimensions and household financial vulnerability. The study provides a basis for policymakers to optimize financial education programmes. Despite limitations, it identifies avenues for future research, ultimately enriching the comprehension of the causal links between financial literacy and household financial outcomes.

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