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Financial literacy and household financial resilience

Liu, Taixing; Fan, Miaomiao; Li, Youwei; Yue, Pengpeng


Taixing Liu

Miaomiao Fan

Pengpeng Yue


Rising uncertainty has drawn researchers’ attention towards households’ anti-risk capacities. Using data from the China Household Finance Survey covering 2019 to 2021, this study investigates the impact of financial literacy on household financial resilience. We measure household financial resilience by analyzing inter-period variations in liquid assets pre- and post-Covid-19, coupled with constructing a sensitivity index. Our analysis indicates that financial literacy significantly enhances financial resilience through the wealth effect and risk mitigation effect. This study highlights the critical role of financial literacy in mitigating risks and accelerating recovery from financial disturbances.


Liu, T., Fan, M., Li, Y., & Yue, P. (2024). Financial literacy and household financial resilience. Finance research letters, 63, Article 105378.

Journal Article Type Article
Acceptance Date Apr 8, 2024
Online Publication Date Apr 9, 2024
Publication Date May 1, 2024
Deposit Date Apr 11, 2024
Publicly Available Date Apr 10, 2025
Journal Finance Research Letters
Print ISSN 1544-6123
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 63
Article Number 105378
Keywords Financial literacy; Household financial resilience; Wealth effect; Risk mitigation effect
Public URL