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The impact of digital literacy on the effectiveness of household financial asset portfolios: Evidence from China

Author

Listed:
  • Wu, Kun
  • Zhai, Yuhang
  • She, Yunchen

Abstract

Effective asset allocation plays a crucial role in preserving and enhancing household wealth. Using data from the 2017 and 2019 China Household Finance Survey, we find that digital literacy enhances household financial asset portfolio effectiveness by influencing individuals’ attention to financial information and risk attitude. The positive effect is stronger among households with higher financial literacy and among middle-aged and younger households. This study highlights the critical role of digital literacy in improving household financial outcomes.

Suggested Citation

  • Wu, Kun & Zhai, Yuhang & She, Yunchen, 2026. "The impact of digital literacy on the effectiveness of household financial asset portfolios: Evidence from China," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325023918
    DOI: 10.1016/j.frl.2025.109142
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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