Digital Financial Literacy of Young Chinese Children in Shanghai: A Mixed Method Study

ABSTRACT

Research Findings: This study examined the financial literacy of 5 and 6-year-old children in Shanghai, including their understanding of financial concepts and their preference for and ability to use digital payment methods. Using a mixed-methods research design, a sample of children ranging in age from 62 to 73 months completed multiple tasks to assess their financial literacy and participated in a semi-structured interview. The results suggested that most young Chinese children had a basic understanding of coins and their value, but there was variation in their perceptions of the need to provide change after making a payment. The majority of young children preferred to pay with digital devices and had a positive attitude toward mobile payments, although some children expressed concerns about their ability to use this method accurately. Practice or Policy: The study findings suggest that perceptions of financial literacy may vary across families from diverse socioeconomic backgrounds. These results lay the groundwork for future digital financial literacy rating scales or behavior coding studies based on the initial findings of young children from middle-income families. The study also emphasizes the importance of providing formal and informal financial education to young children, particularly in regards to digital literacy, in order to prepare them for the future.

Disclosure statement

No potential conflict of interest was reported by the author(s).