EXPLORING THE FINANCIAL HEALTH OF FAMILIES IN CHINA

Considering China's rapid development over the last thirty years, new and distinct financial groups have emerged among China's 1.4 billion residents. A Capstone team explored the Composite Financial Status (CFS)-a measure of overall financial health-of families in China using datasets from the Chinese Household Income Project and the China Family Panel Study. CFS uses a household's income level and asset holdings to gain a robust picture of a household's financial well-being. The four CFS categories include poor, transient poor, transient rich, and rich. The team's research identified the distinctions between the different financial status categories, analyzed demographic characteristics, and explored the personal outcomes associated with membership in each of the categories.