A Comment on the Model of Household Financial Decision-making

Research on household financial assets decision-making has a particularly important theoretical and practical significance to China, which is currently seeking for the deepening of financial reform, continually expanding of demand for financial products and household financial practices. The theory of household financial has been a foundation in asset allocation, but over the past two decades in the empirical studies of household financial, we found much phenomenon of household financial behavior which cannot be explained by many of the classic textbook models. This paper reviews the main "models of household financial assets optimization decision-making, summarizes the application of household financial decision-making models, which are from the point of view of market risk, risk behavior, the cycle of risk, social risk, bankruptcy risk and integrated risk. On this basis,. this paper looks to the future research direction and tries the solution.