Research On The Influence Of Family Age Structure On Household Risky Financial Asset Allocation

Since the reform and opening up,China’s economy has maintained a momentum of rapid growth,and the income of urban and rural residents has steadily increased,the quality of life has improved significantly,and the financial market has become increasingly prosperous.With the aging of the population and the influence of the new birth policy,the age composition of Chinese families has undergone great changes,with the proportion of the elderly population gradually increasing,while the proportion of the children population gradually decreasing.Family finance,as a research field of finance,has been widely concerned by scholars at home and abroad,especially the selection of family financial assets has become one of the research hotspots,alongside asset pricing and corporate finance.From the perspective of family age structure,this paper takes the proportion of children and the proportion of elderly people as the indicators of family age structure to study their effects on the proportion of risky financial assets allocation.Taking the influence of family age structure on risky financial asset selection as the research topic,this paper proposes three core theoretical hypotheses through literature review and analysis of modern asset portfolio theory,life cycle theory,precautionary savings theory and liquidity preference theory.Using the panel data of China Household Finance Survey from 2015 to 2019,this study investigated the influence of family age structure on risky financial asset selection,which was specifically manifested as two explanatory variables:the proportion of children and the proportion of the elderly.At the same time,the differences between urban and rural areas are analyzed,and the robustness test is carried out by substituting explanatory variables.According to the empirical test results,we conclude that:first,the age structure of the family has a significant impact on the allocation of financial assets risk.An increase in the proportion of children and elderly people in the household will lead to a decrease in the riskiness ratio of household financial assets.Second,family age structure has an impact on financial asset allocation,in which medical and education expenditures play a role as intermediary variables.With the increase of the proportion of children and children in the family and the increase of the proportion of the elderly population,the medical expenses of the family are increasing,which leads to the decrease of the allocation proportion of risky financial assets of the family.With the increase of the proportion of minors in the family.families spend more on education,which leads to the decrease of the allocation proportion of families to invest in high-risk financial assets.There is a big difference in financial asset allocation between urban and rural households,especially in risky assets,while in rural households,the negative impact of the elderly population has a small impact on risky assets allocation.In order to promote the healthy and stable development of family finance,based on the research conclusions of this paper,four suggestions are put forward as follows:Firstly:the social security system should be improved to reduce the pressure of family support;Secondly,we should pay attention to the education of family financial knowledge,improve the family financial literacy;Third,create new financial products to meet the needs of different customers,and provide personalized financial services;Finally,we should strengthen the integration of urban and rural areas so that rural residents can better share the fruits of economic development and optimize asset allocation.