Financial Education and Consumer Financial Planning: Evidence from China
Fuzhong Chen *
School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China.
Tianyi Zhang
School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China.
Jin’ge Ma
School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China.
*Author to whom correspondence should be addressed.
Abstract
The purpose of this study is to examine the impacts of financial education on consumer financial planning. Using data from the 2012 Household Consumer Finance in China’s Urban Residents, this study conducts logistic regression to investigate the associations between financial education and consumer financial planning. The results indicate that financial education is positively associated with consumer financial planning. Moreover, the money and time input in financial education has also been proven to have positive effects on consumer financial planning. The findings suggest that the money input in financial education has played a more vital role in improving consumer financial planning than the time input in financial education. The results imply that the improvement of financial education is conducive to improving consumer financial planning. Furthermore, the results also have implications for policymakers to take measures in enhancing financial support for consumer financial education.
Keywords: Financial education, consumer financial planning, consumer financial wellbeing, logistic regression.