The Factors Research Of Rural Residents’ Financial Literacy In Guang’an City

The purpose of financial literacy research is to find out the financial capacity and financial knowledge level of consumers,so as to prevent financial risks and improve the personal financial well-being.After financial crisis in 2008,consumer financial literacy,as a necessary human capital,has attracted the attention of scholars all over the world.With the economic and social development,many kinds of financial products and services are constantly changing to test the level of financial ability of consumers.Grasping the influencing factors of financial literacy is the basis of understanding the financial literacy of consumers.In the existing research,most of which are based on urban residents,while China is in the critical period of building a moderately prosperous society in an all-round way,and it is a long way to go to get rid of poverty accurately with the limitation of resource and endowment conditions,Compared with cities,financial environment in rural area is worse also bring with various financial chaos.With the gradual increase of financial availability in rural areas,it is urgent and necessary to study the financial literacy of rural residents.This paper mainly uses the method of questionnaire to collect data,introduces social interaction influencing factors on the basis of existing research,and carries out empirical analysis by building a model.In the measurement of financial literacy,this paper divides the level of rural residents’ financial literacy in three parts: comprehensive,subjective and objective.In the structure of the analysis,regression analysis is mainly conducted from two dimensions of "influencing factors of financial literacy" and "differences among different groups".The results show that the overall financial literacy of rural residents in Guang’an is in the middle level and needs to be improved.The residents’ subjective financial literacy is in the middle level,they don’t show much financial preference,but they have a good sense of financial planning and saving.Among them,young people planning more frequently,while middle-aged people show much more consciousness on pension planning.Totally,Objective financial literacy is low,the results indicate that residents here lack of understanding of basic financial knowledge and capital market knowledge such as stock funds,and their computing ability is dissatisfied.The results of empirical analysis show that education,occupation and social interaction factors have a significant impact on Residents’ subjective and objective financial literacy.The specific difference lies in the variation of education level,occupation type and social interaction.The objective financial literacy is mainly affected by education factors,while the subjective financial is affected by social interaction factors.Finally,the results of the difference analysis are as follows: firstly,according to the group differences divided by age,the young people’s comprehensive financial literacy is mainly affected by education factors,while the middle-aged and old people are affected by social interaction factors.Generally,the higher the age structure,the lower the score of their comprehensive literacy.Secondly,there is a significant positive correlation between social interaction and men’s comprehensive financial literacy.Generally,men’s literacy score is higher than women’s,and high education level has a significant improvement on women’s financial literacy.Finally,there are differences within the occupational group.In this group,the agricultural part-time and non-agricultural part-time are mainly affected by social interaction factors.At the same time,the education level above high school has a significant positive impact on the quality of non-agricultural part-time workers,and the lower the degree of contact with agriculture,the higher the financial quality of the residents.To sum up,on the results of the overall level,such as subjective and objective differences in financial literacy,and the differences in comprehensive literacy among different groups,this paper is consistent with the existing research conclusions.This study also found that the degree of social interaction of rural residents in Guang’an is considerable,the effect of financial literacy improvement brought by the exchange of information among residents is obvious.Therefore,this paper suggests that we should strengthen the popularization of financial knowledge and the publicity of financial common sense.Schools should strengthen the financial learning and education of young students,expand social skills,and encourage the opening of adult financial re-education classes.Social financial institutions should properly guide consumers to form correct financial concepts.The government needs to encourage people’s interaction in financial field to form the “ Financial corner ",and improve the financial risk awareness of residents,so as to promote the virtuous cycle of local social economy.