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Financial literacy and household risky financial asset investment: A family structure perspective based on CHFS data

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  • Leng, Chunyu
  • Ben, Fang
  • Han, Cheng

Abstract

This study utilizes data from the China Household Finance Survey (CHFS) conducted between 2017 and 2021 to explore the relationship between financial literacy and household investment behavior, with a focus on the moderating roles of the proportion of older adults and children in households. The results indicate that financial literacy encourages households to invest in risky financial assets. Moreover, the presence of a higher proportion of older adults amplifies this positive effect of financial literacy on risky investment, while a higher proportion of children dampens it. Additionally, financial literacy exhibits a stronger promotional effect on investment behavior among urban households compared to rural households.

Suggested Citation

  • Leng, Chunyu & Ben, Fang & Han, Cheng, 2025. "Financial literacy and household risky financial asset investment: A family structure perspective based on CHFS data," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006099
    DOI: 10.1016/j.frl.2025.107348
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    References listed on IDEAS

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