The Influence of Different Demographic Factors on Consumers Financial Literacy in China

Abstract

Because of the impact of the COVID-19 pandemic, China's economy and financial markets have been volatile in recent years. This necessitates using financial literacy by Chinese customers to handle their assets effectively and avoid losses. This essay aims to investigate the effect of various demographic parameters on the financial quality of Chinese consumers. The 2019 China Consumer Finance Survey questionnaire yielded 13,000 data points for this article. STATA was applied to screen twelve independent variables associated with financial quality, and a multiple linear regression model was utilized to determine the association between each variable. The findings revealed a strong relationship between age, gender, income, education level, the proportion of household members with sickness, consumer risk preference, rural domicile, family size, self-employment and house ownership with financial quality, except that there was no significant correlation between marital status and consumer financial quality. The results indicated a significant correlation between age, gender, income, education level, and the proportion of household members with illness. These findings imply that different demographic factors influence Chinese consumers' financial quality to varying degrees. As a result, each consumer makes different decisions about managing assets and avoiding risk.