Does Financial Literacy Affect Household Financial Behavior? The Role of Limited Attention.

ABSTRACT: Financial literacy is essential for every individual concerned with public welfare and household portfolio choices. In this study, we investigate the impact of household financial literacy on individuals' financial behavior using the China Household Financial Survey Data (CHFS) of 2015 and 2017. The results show that financial knowledge has significant current, long-term, and dynamic effects on financial behavior. This finding suggests that financial literacy is an important factor in shaping and improving financial behavior. Second, financial literacy can improve residents' limited attention, and residents with high attention tend to have formal bank accounts, participate in the stock market, and engage in financial behaviors in situations such as risky financial markets. High attention a

SUBMITTER: Xu S 

PROVIDER: S-EPMC9252460 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature