Measurement Of Financial Capacity And Influencing Factors Of Rural Residents In Sichuan Province

Financial competence is a relatively new concept.The concept of financial capability was put forward earlier by the British Treasury in 2007.It refers to the combination of financial theory knowledge,financial skills and motivation when people make their own financial actions.People with high financial ability can predict,search and apply financial information,know when to give advice,and actively participate in financial activities.After the 2008 financial crisis,people realized that strengthening financial capacity can help prevent financial risks,so the improvement of financial capacity began to get widespread attention.In terms of financial ability,rural residents themselves have a certain weakness,and they face more difficulties in participating in financial activities.Therefore,how to improve the financial ability of rural residents,effectively increase the participation of rural residents in financial activities,so that they can better adapt to the changes of the financial market,to achieve the well-being of more rural residents,is of great significance.First of all,this paper sorts out the research on financial competence of domestic and foreign scholars,and combines the theoretical basis of the feasible competence theory of Amadea Sen,the core competence theory of Martha Nussbaum,the financial feasible competence theory of Sherraden and the relevant theories of behavioral economics.In-depth analysis of financial capacity related theories.Secondly,the indicator system for measuring the financial ability of rural residents in Sichuan province is built on the basis of referring to the four principles of the financial ability measurement system of the World Bank and according to the research data of China Household Finance Survey and Research Center(CHFS)in2019.The indicator system includes four first-level indicators,namely financial knowledge,financial skill,financial attitude and financial behavior.There are 12 secondary indexes including interest rate,compound interest,inflation cognition,operation loan usage,operation ability,Internet finance application,risk attitude,savings preference,future planning,fund management,long-term planning and understanding of financial information changes.The score sum-sum method is used to measure the development status of financial ability of rural residents in Sichuan Province.The current situation of financial ability development of rural residents in Sichuan province is calculated.The results show that the financial ability level of rural residents in Sichuan province is generally not high,with an average score of6.05(total score 19),which is reflected in four aspects: financial knowledge,financial skills,financial attitude and financial behavior.Then,it makes an empirical analysis of the factors that influence the development level of rural residents’ financial ability in Sichuan Province.From age,sex,physical status,marital status,education level,party membership and total family income,seven aspects of the investigation,the results show: Factors such as age,gender,marital status,Party membership and total family income of rural residents have no significant influence on their financial ability level,while factors such as physical status and educational level have significant influence on their financial ability level.Finally,this paper puts forward corresponding countermeasures and suggestions from two aspects: attaching importance to the financial education of rural residents and exerting the leading role of the government to build a suitable financial environment.