The Impact of Parental Education Level on Household Economic Behavior: An Empirical Study on Income, Consumption, and Investment Patterns

Parental education is a core determinant of household financial decision-making, yet region-specific evidence on its multifaceted impacts in emerging economies remains limited, particularly for Guangdong Province, China’s most economically dynamic region. This study examines how parental education level shapes five dimensions of household economic behavior: income level, consumption structure (Engel’s Coefficient), investment intensity, borrowing behavior, and savings diversity. We use survey data from 306 parents of primary school students in Guangdong Province to obtain ordered logit (Ologit) regression, heterogeneity analysis, IV estimation, endogeneity and multiple robustness analyses. It is found that parental education is positively related to household income, investment ratio, borrowing ratio, and savings diversity and negatively associated with Engel’s Coefficient, support all five hypotheses. Heterogeneity analysis is shown that they are more pronounced for non-Guangdong-Hong Kong-Macao Greater Bay Area (GBA) parents and less satisfied workers. This paper fills the gap in Guangding Province, by providing comprehensive evidence on the connection between parental education and household economic results. The findings may inform policymakers about the impact of education on family financial well-being and the design of targeted financial literacy programs.