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Opportunities for higher education for children, financial literacy and household capital

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  • Ni, Junwei
  • Gao, Yidan

Abstract

Using data from the China Family Panel Studies, this paper examines the impact of family capital—comprising economic and cultural capital—on children's access to higher education. It also investigates the moderating role of financial literacy in this relationship and the differences between urban and rural areas. The findings indicate that both economic and cultural capital have significant positive effects on children's access to higher education, with financial literacy further strengthening this relationship. Moreover, the influence of family capital on higher education opportunities is greater for children with urban household registration than for those in rural areas. Given these findings, policymakers and families should recognize the importance of these factors and implement effective measures to promote educational equity and social mobility. Such measures may include increasing investment in rural education and enhancing families’ economic stability, cultural awareness, and financial literacy.

Suggested Citation

  • Ni, Junwei & Gao, Yidan, 2025. "Opportunities for higher education for children, financial literacy and household capital," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004994
    DOI: 10.1016/j.frl.2025.107236
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    1. Mianbi Xie & Xin Chen & Yingying Zhao, 2025. "Education debt and household consumption upgrading: Positive incentives or inhibitions?," PLOS ONE, Public Library of Science, vol. 20(10), pages 1-26, October.
    2. Yu, Shuang & Wang, Manyi & Liang, Yinhe, 2025. "Child education and parental financial outcomes: Evidence from a schooling reform," Finance Research Letters, Elsevier, vol. 83(C).
    3. Li, Bing & Liu, Yaping, 2025. "Household aging, commercial insurance participation, and risky asset allocation," International Review of Financial Analysis, Elsevier, vol. 104(PA).

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