Sustainable Financial Education and Consumer Life Satisfaction

Abstract

Sustainable financial education is defined as the continuous input of money and time on financial knowledge education after formal schooling. The purpose of this paper is to examine the impact of sustainable financial education on consumer life satisfaction. Utilizing the dataset of Household Consumer Finance of Chinese Urban Residents in 2012 by the China Financial Research Center of Tsinghua University, the variable of sustainable financial education is constructed through the variables of the necessity of financial education, the money spent on financial education, and the time spent on financial education. To improve the estimation results, order probit regression is utilized. The results indicate that financial education is significantly positive to consumer life satisfaction only for a consumer with higher education. Consumers who regard financial education to be of high necessity will feel more satisfied. The results also show that consumers who spend more money and time on financial education after formal schooling will be more satisfied. Moreover, the sustainable impacts of financial education on consumer life satisfaction are verified. In addition, this study provides empirical evidence that suggests that sustainable financial education positively contributes to consumer life satisfaction. The results have implications for policymakers to take measures in enhancing sustainable financial education to improve consumer life satisfaction.

The General Financial Education in China: Evidence From Ratio of Undergraduate Financial Education Majors in Universities

“…In recent decades, the internet's development has fastened liquidity flow 39,40 , creating new complex investment forms 41 . In this way, it has deepened financial education contributions to stock market participation 42 , retirement planning 43 , and investment efficiency 44 . Moreover, Internet development helped the financial field to be more detailed and set the stage for dividing the general economy into specific areas for the urgent need of different industrial economies.…”

The Role of Financial Capability and Culture in Financial Satisfaction

“…It has also been found that financial education relates positively to consumer satisfaction among individuals with higher education. Therefore, consumers who consider financial education important tend to feel more satisfied (Chen et al ., 2020). It has become obvious that financial education increases financial knowledge (Barua et al ., 2018).…”

Education, Financial Knowledge and Consumer Confidence in Financial Goals: Evidence from the 2018 US National Financial Capability Study

“…In this study, the data of the variable of consumer confidence in financial goals is not continuous but discrete and ordered. According to Chen et al [44], the approach of Ordinary Least Squares (OLS) regression is inappropriate, which will bring estimation bias. Hence, ordered logistic regression is conducted to investigate the roles of education and financial knowledge in consumer financial confidence.…”

“…Tracing back to the empirical model of prior research in the area of consumer finance [44,45], some demographic and socioeconomic characteristics in determining the degree to which consumers' confidence in reaching a financial goal is regarded as control variables. These variables include marital status (1 stands for married and 0 otherwise), gender (1 represents male and 0 otherwise), race (1 represents non-white and 0 otherwise), age (6 types as 18-24, 25-34, 35-44, 45-54, 55-64, and 65 or older), the number of financially dependent children, work status (Being unemployed or retired, being self-employed, and working parttime or full-time).…”