The impact of financial literacy on family wealth

Since the outbreak of the global financial crisis in 2008, the research on financial literacy has gradually attracted the high attention of governments and scholars. At present, scholars in various countries have carried out rich research on financial literacy, but there are relatively few studies on the impact of financial literacy on family wealth. On the other hand, due to the particularity of China's economic and cultural traditions, the research conclusions of many western scholars on the impact of financial literacy on family wealth do not necessarily accord with the reality of China. Therefore, this paper uses the survey data from the China Household Finance Survey (CHFS) to explore the impact of financial literacy on Chinese family wealth, hoping to supplement the research on Chinese financial literacy. The results of this paper show that financial literacy has a general positive impact on Chinese family income and assets. The improvement of financial literacy can improve family income and assets. After adopting different financial literacy measurement methods and instrumental variables, the results show that this conclusion is robust.