Using the data of China Household Finance Survey(CHFS)in 2017 and 2019,this paper conducts an empirical analysis to study whether and how household net worth affects consumption.It is found that household net worth has a significant positive impact on household consumption.It means that the increase of household net worth will improve residents'consumption level and develop enjoyable consumption.The difference of life cycle and the difference between urban and rural areas are the causes of the consumption difference between urban and rural residents.Therefore,the government and society should continue to ensure the preservation and appreciation of residents'wealth,strengthen financial regulation and control in the real estate market,strengthen the protection of the rights and interests of financial consumers,develop inclusive finance,ensure reasonable and moderate liabilities of residents,avoid excessive and concentrated consumption of residents and improve consumption ability.
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