Strategic wealth management for Chinese households: navigating liquid and illiquid assets for overseas education planning

Jialong Li, Congrong Ouyang and Ji Shen

Applied Economics, 2026, vol. 58, issue 3, 413-429

Abstract: This study examines the relationship between overseas education planning and household asset allocation by using data from the China Household Finance Survey (CHFS) during the years 2011, 2013, and 2015. Our findings suggest that households planning to have their children educated overseas tend to hold more liquid and illiquid assets, with a stronger association observed for illiquid assets. Mechanism analysis reveals that while overseas education planning is positively associated with the level of liquid assets, this effect is amplified by higher risk tolerance. Moreover, the financial literacy of household heads moderates the relationship between overseas education planning and real estate asset holdings. Additionally, overseas education planning strongly predicts household asset allocation by increasing the probability of paying attention to financial information and expanding social networks. Furthermore, overseas education planning is a strong predictor of real estate asset holdings, particularly for households with high education levels, high incomes, and those from provinces with lower educational resources.

Date: 2026
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DOI: 10.1080/00036846.2025.2510680

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