Abstract
According to the research experiences of foreign financial literacy and China's actual needs, this paper divided Shanghai residents’ financial literacy into three categories: financial knowledge level, behavior finance background and investment capabilitiy. Then set some related questions to investigate them successively, sorted out the basic data of shanghai residents' financial literacy and used average analysis and univariate analysis to process it. Firstly, this paper overviews the result of every question, then adds age, gender, degree and income as control variables to furtherly analyse the data of financial knowledge level, behavior finance background and investment capabilitiy, finally excavates potential value information, summarizes regular characteristics, and combines with the reform path of Chinese pension system and the trend of financial industry development to put forward specific recommendations and macro proposed measures to improve residents’ financial literacy in Shanghai as well as the country.
Highlights
Financial literacy consists of knowledge, capability and mental cognition which help individuals effectively manage their financial assets and resources for their happy later life
Financial literacy has been popular in interactive research between finance and social security, many foreign scholars and governmental organizations find that as resident's life extends, problem of global ageing population will become more serious, countries' financial burdens will be bigger, so it is tendency that government will let residents take more responsibility for pension expenditure and have higher financial literacy to avoid appearing the big empty hole of national pension system
Foreign researches indicate that residents have low financial literacy in many countries which counts against their wealth accumulation and pension planning
Summary
Financial literacy consists of knowledge, capability and mental cognition which help individuals effectively manage their financial assets and resources for their happy later life. Financial literacy can be expressed in three aspects which are right understanding of financial theory and products, assessment and tendency in financial environment and capability of using financial tools to complete capital planning. Financial literacy has been popular in interactive research between finance and social security, many foreign scholars and governmental organizations find that as resident's life extends, problem of global ageing population will become more serious, countries' financial burdens will be bigger, so it is tendency that government will let residents take more responsibility for pension expenditure and have higher financial literacy to avoid appearing the big empty hole of national pension system. Foreign researches indicate that residents have low financial literacy in many countries which counts against their wealth accumulation and pension planning. It is urgent to conduct survey of residents' financial literacy in every country to make sense of the local residents' financial literacy and promote it
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