Exploring the Feedback Loop Between Financial Knowledge, Personal Wealth Management, and Future Investment Behavior Among Chinese University Student

Luyue Li

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.ACCOUNTING

Faculty Research Mentor: Khan, Kashif Ullah  

Abstract:

The purpose of this study is to investigate the dynamic feedback loop among financial knowledge, personal wealth management and future investment behavior among Chinese university students. It aims to reveal how these three factors interact to form a self-reinforcing cycle and to explore the moderating effects of financial attitude, planning ability and prior investment experience.A quantitative and cross-sectional design was adopted. Data were collected through an online questionnaire targeting Chinese university students (N = 575). Factor analysis, correlation analysis and structural equation modeling were conducted to test the hypothesized relationships and moderating effects.Results confirm that financial knowledge positively influences personal wealth management, which subsequently fosters future investment behavior. Moreover, investment behavior feeds back to enhance financial knowledge, forming a self-reinforcing loop. The strength of these relationships is significantly moderated by financial attitude, planning ability and prior investment experience.This study is among the first to empirically demonstrate a feedback mechanism linking financial knowledge, personal wealth management and future investment behavior in a non-Western context. The findings highlight the importance of integrating financial education with practical learning, which encourages policymakers to promote youth-friendly investment platforms and programs that bridge financial theory with practice, equipping young investors with essential skills for their future financial decision-making.