The Impact of Financial Literacy on the Subjective Happiness of Chinese Youths ——Micro Evidence from Chinese Families

Enhancing the well-being of people's livelihoods and promoting the growth and development of youth are two important aspects of the core goal of high-quality development in the new era of China. Using mixed cross-section data constructed from the China Household Finance Survey database from 2015 to 2019, this paper analyzes the theme of whether youth financial literacy can enhance their subjective well-being by applying the Ordered Probit model and OLS estimation. The findings suggest that financial literacy significantly inhibits the subjective well-being of China's youth cohort. In addition, financial literacy has a heterogeneous effect on the subjective well-being of groups with different family sizes and education levels. The results of the mechanism analysis indicate that financial literacy suppresses the subjective well-being of young residents through two ways, namely, by increasing the degree of risk appetite and by increasing the probability of the participation in risky asset investment.