A Study On Investment In Financial Literacy

With the development of financial industry, there’re more and more financial products in China. Consumers will have more choices when investing in financial market. But there is also more difficult for them to understand the financial products and services. In such a situation, consumers need to obtain sufficient financial literacy to make important personal financial decisions. Therefore, promoting universal public education finance and improving financial consumers’ability to protect themselves is necessary.This paper uses the survey data from Financial Literacy, Market Participants and Financial Well-being of Households’ Survey to reveal the essential characteristics of the formation of personal financial literacy. Financial literacy is not the professional quality. People can accumulate financial literacy by "lifelong learning". And they must spent some of their time to increase financial literacy. A two-period model of investment in financial literacy is constructed on this basis. By deriving the model it can get some conclusions about financial literacy investments. Further, the empirical method is used to study the factors associated with financial literacy.As Aristotle said:For those things you have to learn before you can master them, you need to learn by doing. Results of this study also show that:financial literacy is an essential and basic quality of life, paying attention to everything in daily life is the best way to get financial literacy. The main conclusions are:(1)Most people obtain financial literacy through newspapers, Internet and other media channels. (2)Those who have received financial education in school own higher financial literacy. Higher educated people own higher financial literacy. Financial literacy is lower among women and the old people. (3)Improving financial literacy can contribute to the accumulation of household wealth.