The effect of childhood socioeconomic status on youth investment risk tolerance: Based on the life history theory perspective

This study based on the life history theory discusses how childhood socioeconomic status (SES)1 affects youth investment risk tolerance and proposes a moderated mediation model to examine the mediating role of life history strategies and the moderating effect of financial literacy. Based on a survey of Chinese youth, we found that childhood SES has a significant positive effect on youth investment risk tolerance and life history strategies mediate the relationship between childhood SES and investment risk tolerance. Furthermore, financial literacy not only moderates the positive relationship between childhood SES and investment risk tolerance but also moderates the indirect effect of childhood SES on investment risk tolerance through life history strategies. Specifically, the positive effect of childhood SES on investment risk tolerance through life history strategies is weakened in youth with greater financial literacy.