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Exploring the mechanism and path of financial Literacy's impact on consumption of middle-aged and elderly rural residents: Micro-evidence from CHFS data

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  • Zhao, Guobin
  • Yuan, Yanzhe
  • Zhang, Yaning

Abstract

Based on the data from the three rounds of the China Household Finance Survey (CHFS) in 2015, 2017, and 2019, this study systematically explores the mechanism and path through which financial literacy influences the consumption patterns of middle-aged and elderly individuals in rural areas. The findings reveal that financial literacy plays a positive role in enhancing the consumption levels of this demographic group, while family satisfaction also significantly promotes their consumption growth. Furthermore, this research uncovers that Internet usage serves as a mediating factor between financial literacy and consumption among middle-aged and elderly rural dwellers, and risk preference significantly moderates the relationship between financial literacy and their consumption. It is noteworthy that the impact of financial literacy on the consumption habits of middle-aged and elderly rural populations varies across different regions. This study contributes novel insights to the theoretical understanding of the relationship between financial literacy and consumption among middle-aged and elderly rural residents, and offers empirical evidence and data-driven recommendations for elevating their consumption levels. It possesses both substantial theoretical value and practical implications for guiding policy and practice.

Suggested Citation

  • Zhao, Guobin & Yuan, Yanzhe & Zhang, Yaning, 2025. "Exploring the mechanism and path of financial Literacy's impact on consumption of middle-aged and elderly rural residents: Micro-evidence from CHFS data," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024007688
    DOI: 10.1016/j.iref.2024.103776
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