Research On The Relationship Between Financial Consciousness And Household Wealth And Asset Allocation

With the fortieth anniversary of reform and opening up,the domestic economic situation and financial environment have changed with each passing day,the degree of marketization,monetization has been improved,and the financial correlation rate has gradually increased.In such a dynamic financial environment,The disposable income of households is also increasing,and more and more families want to enter the financial market to participate in venture capital to maintain and increase the value of their assets.In view of this situation and demand,Family finance has become a hot topic for scholars at home and abroad.The family is the smallest unit of production and life and of formulating investment strategies.The study of household finance is the most micro level of financial research,and it also provides a strong basis and support for us to study the whole social macroeconomic and economic policy.This paper focuses on the relationship between financial consciousness and household wealth and asset allocation.Firstly,on the basis of combing the theory and literature related to household finance,we find out that the traditional factors that influence household wealth and asset allocation,Such as age,education,marital status,sex,income level,household registration,private owner risk,etc.Secondly,through theoretical analysis,we prove that financial awareness reduces the participation cost of households in financial market investment.At the same time,we give investors good investment opportunities to improve the return,and then have an important impact on household wealth.Therefore,we construct financial awareness variables to further analysis in the empirical analysis.Next,this paper will use the household micro survey data(CHFS)of China Family Financial Survey and Research Center in 2015,and construct the financial awareness index by the factor molecular method,and analyze the traditional factors and the present situation of the financial consciousness.Finally,with the help of OLS,Probit and Tobit he regression model,this paper mainly studies and verifies the participation probability of financial consciousness to the household financial market under the condition of controlling the traditional influencing factors.Finally,based on the empirical results,we put suggestions and measures from three aspects of government,family and financial institutions for reference.