Research On The Impact Of Financial Literacy On Household Income In Hunan Province

At present,Hunan Province has entered a new stage of comprehensively implementing the rural revitalization strategy and solidly promoting common prosperity.Continuously increasing the income of rural households is the key to achieve the goal of rural revitalization and common prosperity in Hunan Province.The farmers’ financial literacy affects their financial services availability,which in turn has an important impact on their income.Therefore,this paper deeply explores the impact of financial literacy on farmers’ income,then to promote their income by financial literacy improving,which has important practical significance on consolidating and expanding the achievements of poverty alleviation,connecting rural revitalization effectively,and promoting the goal of common prosperity realization in Hunan Province.First of all,on the basis of sorting out relevant research results at home and abroad,this paper condenses the theoretical connotation of farmers’ financial literacy and family income from three dimensions of financial knowledge,financial skills,and financial awareness,and deeply analyzes the mechanism impact of farmers’ financial literacy on family income.To analysis the field survey data of 602 farmers in Changsha,Hengyang and Zhangjiajie,Hunan Province,to calculate the current situation of farmers’ financial literacy by factor analysis and scientifically summation,and the total household income,to measure the current situation of farmer household income by total household income,operating income,property income,wage income and transfer income.The results show that the average financial literacy index of rural households in Hunan Province is 1.79e-09,indicating that the rural households financial literacy level is low.,with a large proportion of wage income and the lowest transfer income.Then,to empirically analyze the impact of financial literacy on the income of rural households by multiple linear regression model.The results show that financial literacy has a significant positive impact on farmer household income.The higher the financial literacy,the higher total income of farmers.Education status,health status,family members joining social organizations,and the number of family laborers have a significant positive impact on the total income of rural households.By subdividing the composition of farmer household income,it is found that financial literacy has a positive impact on operational income,wages income and property income,but has no significant impact on transfer income.Finally,combined with the actual situation of farmers’ financial literacy and family income,to give suggestions to increase farmers’ income by improving farmers’ financial literacy from the perspectives of government,financial institutions and farmers themselves in order to help farmers to achieve long-term benefits,to promote high-quality development of the rural economy and the rural revitalization strategy,and continue to narrow the urban-rural income gap and promote the realization of the goal of common prosperity.