Research On The Influence Of Financial Education On Financial Well-Being

Deregulation of financial markets and the reduction in costs determined by developments in information technology and telecommunications have resulted in a proliferation of new financial products tailored to meet very specific market needs. Financial markets have become more sophisticated and new products are offered to consumers. In addition, more frequent natural catastrophes, the increase of financing children's education and more expensive hospitalization costs all make it necessary for residents themselves and their families to make financial decisions more rational. The globalization and sophistication of finance as well as economic systems make individuals' financial decisions and behavior ever more important at the micro and macro levels.Against these developments, surveys conducted by international organizations and by national authorities indicate that most individuals do not have sufficient knowledge to understand financial products and the risks associated with the products and they are ill-equipped to take advantage of new financial opportunities and responsibilities. It is hard for them to make financial decisions wisely and choose financial products which meet their needs. This will have a negative impact not only on future financial well-being of individuals and their families, but also on the long-term stability of financial and economic system. With the financial products becoming more and more sophisticated as well as the consideration of financial security, financial education gains increasing attention.The fundamental goal of economic and social development is to concern people's livelihood and improve their well-being. The Twelfth Five-year Plan put forward clearly" the protection and improvement, adhere to people's livelihood as accelerating transformation of the mode of economic development of the basic starting point and the foothold", marking the social construction which focuses on improving people's livelihood will be the main task at this stage. Whether financial education can significantly improve people's financial well-being, in other words, whether there is a need to accept financial education? Facts proved that people who have accepted financial education are better able to make financial decisions for their families and to enhance the security of household finance. The security of household finance will better promote the development of society and economy.Based on the theory of financial education and financial well-being, the study focuses on:(1) exploring the theoretical interaction mechanism among financial education, market participation and financial well-being; (2) building indicators of financial well-being and measuring the financial well-being level of residents in our country; (3) utilizing propensity score matching to conduct an empirical analysis on the interaction among financial education, market participation and financial well-being. Results show that accepting financial education can promote residents' participation in financial market, especially the participation in risk market; participating in financial market can improve the level of residents' financial well-being; the participation in risk market improves financial well-being more apparently, especially the participation in foreign exchange market; (4) building the financial education national strategy in our country in order to better led the improvement of financial literacy to ensure the protection of financial well-being.