| Financial literacy is the basic knowledge and skills that individuals have engaged in financial activities.In recent years,the coexisting vision that the generally low residents’ financial literacy and the highly developed financial market has aroused the attention of governments and academics,and empirical studies on the relationship between financial literacy and financial behaviors have being emerging.However,there is no consensus on how to scientifically measure residents’ financial literacy.The theoretical mechanism and effects of financial literacy on financial behaviors have not been fully and systematically revealed.The survey results of the China Education Development Foundation(2013)and the People’s Bank of China(2013,2015,2017)show that although the financial awareness of Chinese residents is improving,financial literacy remains at a relatively low level,and financial literacy among rural residents is pessimism.Presently,Internet and digital technology have gradually penetrated into the rural financial market,which have imposed higher requirements on rural residents’ financial literacy.Therefore,how to evaluate and upgrade rural residents’ financial literacy has become an important issue.The main logic of this article is to analyze the effect factors and consequences rural residents’ financial literacy.Firstly,the article reviews the relevant literature comprehensively,and defines relevant concepts,and then makes logical reasoning on the theory and elaborates the theoretical basis of this paper.Then,based on the OECD financial framework,the three classic dimensions of financial literacy measurement and the characteristics of China’s rural finance and residents,the article constructs the rural residents’ objective financial literacy measurement framework from basic financial knowledge,understanding and application of financial knowledge,risk and reward,financial planning,financial background information analysis and financial responsibility awareness which covers a total of 13 indicators in six areas,and the article measures the subjective financial literacy level through self-evaluation of their financial literacy,and selects Shandong,Henan,and Guizhou provinces as the survey areas.Secondly,this article further analyze the influencing factors of rural residents’ financial literacy in both level of micro-personal characteristics and macro-environment.Thirdly,from financial literacy’s two dimensions,which is objective and subjective financial literacy,the article clarifies the theoretical relationship between financial literacy and financial behaviors,and validates the influence of rural residents’ objective and subjective financial literacy on payment,loan and finance behaviors through mediation and regulation effects.It’s important for improving rural residents’ financial literacy,optimizing their financial behaviors,and increasing the effective demand and supply of rural financial services.The paper reaches the following conclusions upon systematic studies:1.There are obvious regional differences in the rural residents’ overall financial literacy level in the above three regions,showing declining trends in Shandong,Henan,and Guizhou provinces,and objective financial literacy differences are mainly reflected in basic financial knowledge,understanding and application of financial knowledge,financial planning,financial background information analysis.2.Gender,age,the respondents’ and their parent’ education level,marriage,career,risk type and financial education all affect residents’ financial literacy,but these factors’ effect have differences.The financial literacy levels of male respondents or respondents who received financial education are higher;the higher the respondents’ or their parent’education level,non-agricultural degree,the degree of risk preference,the higher their financial literacy;in the higher level of economy and urbanization region,the overall level of respondents’ financial literacy is higher;in the higher level of economy,education,finance and urbanization region,the respondents’ education level has weaker effect on financial literacy,and the respondents’ financial literacy gap of same ages is bigger;in the higher level of economy,education and urbanization region,the respondents’ financial literacy gap of different occupations is smaller;in the higher levels of education region,the financial literacy gap of single and married respondents is smaller.3.The results of impact path of rural residents’ financial literacy on financial behaviors:(1)Objective financial literacy’s direct effects: objective financial literacy has positive effects on payment behaviors(Shandong,Henan),internet payment behaviors(Henan),formal bank lending behaviors(Henan),Internet lending behaviors(Guizhou),financial market and insurance market participation behaviors and financial market participation’s attitudes(Shandong,Henan,Guizhou),Internet financial behaviors(Henan),and other pension behaviors making for purchasing new rural insurance(Shandong,Guizhou),but has negative effect on the new rural insurance’s purchasing grade behaviors(Henan);(2)Subjective financial literacy’s direct effects: subjective financial literacy has positive effects on payment behaviors(Shandong,Henan,Guizhou),Internet payment behaviors(Henan),loan behaviors and regular bank lending behaviors(Shandong(Guizhou),Internet lending behaviors(Guizhou),financial market participation behaviors and financial market participation’s attitude(Shandong,Henan,Guizhou),insurance market participation behaviors and other pension behaviors making for purchasing new rural insurance(Henan,Guizhou),new rural insurance’s purchasing grade behaviors(Guizhou)has a positive effect,but has negative effect on formal bank loan behaviors(Guizhou);(3)Subjective financial literacy’s mediating effects: subjective financial literacy is a mediator of the effects of objective financial literacy on payment behaviors and formal bank loan behaviors(Henan),financial market participation behaviors(Shandong,Henan),financial market participation’s attitudes(Shandong,Henan,Guizhou),and other pension behaviors making for purchasing new rural insurance(Shandong);(4)Subjective financial literacy’s moderating effects: subjective financial literacy is a moderator of the effects of objective financial literacy on payment behaviors(Henan),financial market participation behaviors(Shandong,Henan),financial market participation’s attitude(Shandong,Henan,Guizhou),Internet financial behaviors and new rural insurance’s purchasing grade behaviors(Henan),insurance market participation behaviors and other pension behaviors making for purchasing new rural insurance(Shandong).In addition,respondents’ financial behavior is also related to gender,age,education level,marriage,career,risk type,financial education or family per capita income.Based on the above conclusions,combining foreign financial literacy promotion strategies’ successful experience,the article believes that the national financial education strategy should be promoted,and that the financial education objects,contents and method must be targeted,pay attention to the characteristics and changes,and the effects on financial behaviors of the subjective financial literacy of residents,pay attention to the macro external environmental impact on financial literacy,and promote financial advisory and improve advisory’s efficiency.The article’s possible innovations are mainly reflected in two aspects as below:1.Conducted objective financial literacy measurement framework for rural residents.When evaluating financial literacy,most of existing studies have chosen a few simple problems,rarely through a more complete measurement framework,and there is no financial literacy measurement framework only for rural residents.Based on the existing research,this paper combines the characteristics of China’s rural finance and residents,constructs the rural residents’ objective financial literacy measurement framework.This work has practical significance for accurately assessing and improving rural residents’ financial literacy.2.The impact path of residents’ financial literacy on financial behaviors is fully explored.The impact of financial literacy on financial behaviors seems to be a very natural and easy-to-understand logical process,but when the extension of financial literacy extends to both subjective and objective dimensions,the impact and transmission path of financial literacy to financial behaviors becomes slightly complex.Previous research focuses on the impact of objective financial literacy on financial behaviors,while neglecting the subjective nature of financial literacy and not considering the impact of subjective financial literacy on financial behaviors.Economic psychology theory and self-efficacy theory believe that the subjective psychological factors have a very important influence on decision-making.Inspired by the above theories,this study explores the specific impact path of rural residents’ objective and subjective financial literacy on financial behaviors from financial literacy’s two dimensions,and the control factors also takes into account the actual situation of rural finance and rural residents,thus exploring the theoretical connection between financial literacy and financial behaviors. |
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