The Influence of Different Demographic Factors on Consumers’ Financial Literacy in China

Research Article
Open access

The Influence of Different Demographic Factors on Consumers’ Financial Literacy in China

Yuanting Chen 1* , Shan Huang 2
  • 1 Monash University    
  • 2 Royal Russell School    
  • *corresponding author 1307009790@qq.com
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/11/20230503
AEMPS Vol.11
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-49-2
ISBN (Online): 978-1-915371-50-8

Abstract

Because of the impact of the COVID-19 pandemic, China's economy and financial markets have been volatile in recent years. This necessitates using financial literacy by Chinese customers to handle their assets effectively and avoid losses. This essay aims to investigate the effect of various demographic parameters on the financial quality of Chinese consumers. The 2019 China Consumer Finance Survey questionnaire yielded 13,000 data points for this article. STATA was applied to screen twelve independent variables associated with financial quality, and a multiple linear regression model was utilized to determine the association between each variable. The findings revealed a strong relationship between age, gender, income, education level, the proportion of household members with sickness, consumer risk preference, rural domicile, family size, self-employment and house ownership with financial quality, except that there was no significant correlation between marital status and consumer financial quality. The results indicated a significant correlation between age, gender, income, education level, and the proportion of household members with illness. These findings imply that different demographic factors influence Chinese consumers' financial quality to varying degrees. As a result, each consumer makes different decisions about managing assets and avoiding risk.

Keywords:

China, customers, financial literacy, demographic factors

Chen,Y.;Huang,S. (2023). The Influence of Different Demographic Factors on Consumers’ Financial Literacy in China. Advances in Economics, Management and Political Sciences,11,39-45.
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References

[1]. President’s Advisory Council. (2008) President’s Advisory Council on Financial Literacy. https://www.academia.edu/6708140/Presidents_Advisory_Council_on_Financial_Literacy_2008_Annual_Report_to_the_President

[2]. Annamaria, L. and Mitchell, O.S. (2011) Financial Literacy around the World: an Overview. Journal of Pension Economics and Finance, 10(4): 497–508.

[3]. Li, Y., Mutchler, J.E., Miller, E.A., Xiao, J.J., and Tucker-Seeley, R. (2022) Space, Context, and Human Capital: A Micro–Macro Perspective on the Social Environment and Financial Literacy in Later Life." Popul Res Policy Rev, 41: 1385–1404.

[4]. Twumasi, M.A., Jiang,Y.S., J., Adhikari, S., Gyamfi, C.A., Asare, I. (2022). Financial literacy and its determinants: the case of rural farm households in Ghana. Agricultural Finance Review., 82(4): 641–656.

[5]. Bennett, J.S., Boyle, P.A., James, B.D. and Bennett, D.A., (2012) Correlates Of Health And Financial Literacy In Older Adults Without Dementia. BMC Geriatrics, 12: 1-9.

[6]. Struckell, E.M., Patel, P.C., Ojha, D., Oghazi, P. (2022) Financial Literacy and Self Employment-The Moderating Effect of Gender and Race. Journal of Business Research, 139: 639-653.

[7]. Aren, S., Zengin, A.N. (2016) Influence of Financial Literacy and Risk Perception on Choice of Investment. Procedia Social and Behavioral Sciences, 235: 656-663.

[8]. Gupta, P.K., Hanagandi, S.S. (2022) Impact of Demography on Financial Literacy. SDMIMD Journal of Management, 13: 81-96.

[9]. Survey And Research Center For China Household Financial, (2022). Data center data application. https://chfs.swufe.edu.cn/sjzx/sjsq.htm

[10]. Ganesh S. (2010) Multivariate Linear Regression. In: Penelope, P., Eva B. and Barry M. (Eds.), International Encyclopedia of Education. Elsevier Science., New Zealand. pp.324-331

[11]. Barnard, C.R., Billing, J., Brotherston, D., Jeffery, T., Mansell, P. and Wright, J. (2021) Money, Knowledge and Power. British Actuarial Journal, 26: 1-26.

Cite this article

Chen,Y.;Huang,S. (2023). The Influence of Different Demographic Factors on Consumers’ Financial Literacy in China. Advances in Economics, Management and Political Sciences,11,39-45.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-49-2(Print) / 978-1-915371-50-8(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.11
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. President’s Advisory Council. (2008) President’s Advisory Council on Financial Literacy. https://www.academia.edu/6708140/Presidents_Advisory_Council_on_Financial_Literacy_2008_Annual_Report_to_the_President

[2]. Annamaria, L. and Mitchell, O.S. (2011) Financial Literacy around the World: an Overview. Journal of Pension Economics and Finance, 10(4): 497–508.

[3]. Li, Y., Mutchler, J.E., Miller, E.A., Xiao, J.J., and Tucker-Seeley, R. (2022) Space, Context, and Human Capital: A Micro–Macro Perspective on the Social Environment and Financial Literacy in Later Life." Popul Res Policy Rev, 41: 1385–1404.

[4]. Twumasi, M.A., Jiang,Y.S., J., Adhikari, S., Gyamfi, C.A., Asare, I. (2022). Financial literacy and its determinants: the case of rural farm households in Ghana. Agricultural Finance Review., 82(4): 641–656.

[5]. Bennett, J.S., Boyle, P.A., James, B.D. and Bennett, D.A., (2012) Correlates Of Health And Financial Literacy In Older Adults Without Dementia. BMC Geriatrics, 12: 1-9.

[6]. Struckell, E.M., Patel, P.C., Ojha, D., Oghazi, P. (2022) Financial Literacy and Self Employment-The Moderating Effect of Gender and Race. Journal of Business Research, 139: 639-653.

[7]. Aren, S., Zengin, A.N. (2016) Influence of Financial Literacy and Risk Perception on Choice of Investment. Procedia Social and Behavioral Sciences, 235: 656-663.

[8]. Gupta, P.K., Hanagandi, S.S. (2022) Impact of Demography on Financial Literacy. SDMIMD Journal of Management, 13: 81-96.

[9]. Survey And Research Center For China Household Financial, (2022). Data center data application. https://chfs.swufe.edu.cn/sjzx/sjsq.htm

[10]. Ganesh S. (2010) Multivariate Linear Regression. In: Penelope, P., Eva B. and Barry M. (Eds.), International Encyclopedia of Education. Elsevier Science., New Zealand. pp.324-331

[11]. Barnard, C.R., Billing, J., Brotherston, D., Jeffery, T., Mansell, P. and Wright, J. (2021) Money, Knowledge and Power. British Actuarial Journal, 26: 1-26.

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