Financial Literacy, Risk Preference, and Personal Financial

Against the backdrop of an increasingly complex global economy and continuous innovation in financial products, financial literacy, this is important for people's ability to cope with financial difficulties and has a significant impact on the quality of financial decision-making and personal finances.. However, current research on how financial literacy and risk preference jointly influence personal financial behavior is still insufficient. This study focuses on working people aged 30 to 60 in China. Through a questionnaire survey, 149 valid samples were collected. The study employed multiple linear regression, ANOVA, and t-tests to analyze the relationships among financial literacy, risk preference, and personal financial outcomes.Empirical findings confirm that financial literacy significantly improves both monthly income and personal savings.This indicates that individuals with stronger financial knowledge are more likely to make informed financial decisions, which support improved financial well-being. Additionally, risk preference is another critical factor influencing personal financial outcomes. Individuals with a higher risk tolerance often achieve higher savings and income levels. Further analysis reveals that financial literacy and risk preference interact in ways that jointly influence financial behavior.Individuals with greater financial literacy typically demonstrate stronger understanding of financial principles and are more likely to accept financial risk, which may enhance their overall financial status.