Introduction

Community mutual aid networks and social relationship capital are playing an increasingly important role in promoting economic development. Especially in the field of household financial management, these factors have an important impact on reducing household financial vulnerability and improving household economic stability (Kim et al., 2020; Nguyen-Trung et al., 2020; Rodima-Taylor, 2022; Sadeka et al., 2020). In the current economic environment, exploring the impact of community mutual aid networks and social relationship capital on household financial vulnerability is crucial. This research can help promote the sustainable development of household economies and enhance households’ ability to withstand economic risks.

The existing literature has not thoroughly examined the relationship between community mutual aid networks, social relationship capital, and household financial vulnerability. Most studies have concentrated on the influence of social networks on individual economic behavior, such as enhancing employment opportunities and impacting investment decisions. Research on social relationship capital has primarily centered on the enterprise level, exploring how corporate social networks impact financing, innovation, and business performance (Fraser, 2021; Sadeka et al., 2020; Zhang et al., 2023). While some literature discusses the positive effects of community support networks on family well-being at the community and household levels, few studies have delved into the mechanism of the impact of community mutual aid networks and social relationship capital on household financial vulnerability (Fraser and Naquin, 2022). Specifically, there is a lack of systematic empirical analysis and quantitative assessment in this area.

In recent years, due to socio-economic changes and the development of network technology, the role of community mutual aid networks and social relationship capital in China’s social and economic structure has become increasingly prominent. Mutual aid activities on online platforms such as WeChat groups and community forums, as well as various forms of cooperation among offline community organizations, offer new perspectives and methods for studying household financial vulnerability (Fraser, 2021; Zhang, 2022). These mutual aid networks can not only provide financial knowledge and information, enhance the ability of households to cope with financial risks, but also directly reduce the financial vulnerability of households through community resource sharing and mutual funds.

However, what is the specific impact mechanism of this emerging community mutual aid model on household financial vulnerability? Is the construction and application of community mutual aid network and social relationship capital necessarily effective in reducing household financial vulnerability? Numerous cases have demonstrated that strong community mutual aid networks and ample social capital are closely linked to household financial stability. Nevertheless, through thorough data analysis, we have limited understanding of the precise extent and mechanisms of this positive correlation.

Although there has been an increasing number of studies on community mutual aid and social relationship capital, there is a lack of empirical and quantitative research on its impact on household financial vulnerability. There are two core problems: first, there is a lack of direct observations of the long-term effects of community mutual aid networks and social relationship capital, partly because these phenomena and data collection have only gradually gained attention in China in recent years. Secondly, establishing a clear causal relationship between community mutual aid networks, social capital, and household financial vulnerability is challenging due to potential two-way effects between these factors. Additionally, accurately measuring household financial vulnerability and its influencing factors in a multidimensional way presents a significant challenge.

This paper enriches the existing literature in three aspects. Firstly, it is the first attempt to empirically quantify the impact of community mutual aid networks and social relationship capital on household financial vulnerability. This paper employs a mixed-methods model to address the endogenous problem, effectively evaluating the household financial protection effect of community mutual aid and social relationship capital. Additionally, the results of this study contribute new evidence to the theories of sociology, finance, and household economics within the context of the Internet and social change. Identifying the protective effects of community mutual aid and social relationship capital is crucial for scientifically evaluating the impact of social structure changes on family well-being. It has been found that the community mutual aid network and social relationship capital can effectively reduce household financial vulnerability. This discovery leads to policy suggestions for community-based financial education and social capital construction, utilizing community resources to support household economic stability.

Literature review and research hypothesis

The literature related to this paper can be categorized into two main areas. The first area focuses on the impact of community mutual aid networks and social relationship capital on individual and family economy (Panday et al., 2021; Si et al., 2022). The second area explores the causes and influencing factors of household financial vulnerability. Current research on community mutual aid networks, social relationship capital, and household financial vulnerability can be divided into two perspectives (Nguyen-Trung et al., 2020; Purnamawati et al., 2023). One perspective examines the impact of macro social structures, such as how community mutual aid networks can reduce household financial vulnerability by enhancing the social capital of communities at a larger scale. The other perspective looks at the micro level, studying the impact of social relationship capital on financial behavior and decision-making, as well as how the accumulation of social capital strengthens households’ ability to withstand economic risks (Katherine et al., 2019; Luxamun, 2021).

Research on household financial vulnerability typically investigates the causes of household financial vulnerability stemming from both internal and external factors related to household financial behavior. Existing literature analyzes the factors influencing household financial vulnerability from an internal perspective, suggesting that household income level, financial knowledge, educational background, and financial behavior habits are crucial determinants of household financial vulnerability (Kim et al., 2020; Nguyen-Trung et al., 2020; Purnamawati et al., 2023). On the other hand, the study also focuses on the impact of the external environment on household financial vulnerability, such as the existence of community support networks and social relationship capital, changes in the macroeconomic environment, and fluctuations in financial markets (Rahayu et al., 2024; Zhang, 2022).

Social capital, including community mutual aid networks and social relationship capital, provides important access to financial management knowledge, investment opportunities, and information on risk mitigation strategies for families. This flow of information and resources strengthens households’ financial literacy and management capacities, as well as their ability to cope with economic challenges (Woolcock, 1998). In addition, the material support and emotional comfort provided by social relationship capital to families in times of economic instability reduce the economic vulnerability of families and enhance cohesion and a culture of mutual support among community members (Zaid and Liamputtong, 2025).

Based on the existing research, this paper explores the relationship between community mutual aid networks, social relationship capital and household financial vulnerability from the following three aspects:

Social relationship capital and household vulnerability

The buffering effect of social relationship capital is the most direct and intuitive way for community mutual aid networks and social capital to alleviate household financial vulnerability. Existing research shows that social capital can improve households’ ability to access financial information and resources through mechanisms such as enhancing trust, mutual assistance and cooperation, thereby reducing financial risks (Guspri et al., 2022; Wang and Shailer, 2017). At the same time, social relationship capital can be used as a channel of resources to provide families with the necessary material support and emotional comfort in the face of economic challenges, and reduce the vulnerability of families in times of economic instability (Sadeka et al., 2020).

Social relationship capital plays a crucial role in alleviating household financial vulnerability. Specifically, social relationship capital strengthens households’ access to important financial information and resources through the promotion of a culture of trust and mutual cooperation to reduce household financial vulnerability (Wang and Shailer, 2017; Xiaoli et al., 2023; Zhao et al., 2023).

The existing body of literature on the role of social capital in mitigating financial vulnerability encompasses both theoretical and empirical domains. Theoretical perspectives highlight social capital as a buffer against economic shocks through the enhancement of trust-building and cooperative norms (Aldrich and Meyer, 2015). Empirical studies further substantiate these claims. Vo (2018) demonstrated that households in rural Vietnam with stronger kinship ties exhibited a lower vulnerability to income shocks. Similarly, Yusuf et al. (2018) identified gender-specific effects, indicating that female-headed households in Nigeria relied more on communal trust networks to mitigate poverty risks. Recent advances in the field have elucidated more nuanced mechanisms. Social capital improves access to financial literacy and risk-averse strategies (Abay et al., 2018; Li et al., 2024). Community savings plans directly offset liquidity constraints (Tang et al., 2023; Will et al., 2023). Psychological Resilience: Emotional support from networks reduces stress-induced financial mismanagement (Chiang, 2015).

Despite these insights, critical gaps remain. Most studies focus on rural or developing contexts such as Ethiopia and Vietnam, thereby neglecting the heterogeneity present in urban settings. Gender disparities in access to social capital are underexplored. While Yusuf et al. (2018) noted this, their study lacked longitudinal evidence. The moderating role of regional development is rarely quantified.

Community mutual aid networks and household vulnerability

The information and resource channels provided by community mutual aid networks are one of the important mechanisms that affect the financial vulnerability of households. Through social networks, families can get more information about financial management, investment opportunities, and risk-averse strategies.

As a form of social capital in community development, community mutual aid networks play a crucial role in reducing household financial vulnerability (Carmen et al., 2020; Esther et al., 2022; Evangelos et al., 2020; Neeraj et al., 2022; Sri et al., 2022; Stefan, 2020). By facilitating the flow of information and resources, such networks provide families with important knowledge about financial management, investment opportunities, and risk-averse strategies. In today’s globalized world and rapidly changing financial markets, access to information is crucial. It directly impacts households’ ability to manage their financial resources effectively and avoid potential economic risks.

The spirit of trust and mutual aid within social networks fosters the formation of social relationship capital, which becomes an important support system for families in times of economic hardship. Through this support system, families can receive not only material help, such as temporary monetary assistance or loans, but also emotional comfort and psychological support (Carmen et al., 2020; Cheng et al., 2021). This social support is invaluable in maintaining the mental health and social well-being of the family during times of economic instability, helping to alleviate the stress and uncertainty they experience. In addition, community mutual aid activities, such as co-savings and emergency fund assistance, can directly provide the financial support that families need during difficult times and reduce their financial vulnerability (Fraser and Naquin, 2022). In the community, a common savings plan or emergency fund aid activity not only provides financial support but also creates an environment of mutual support and cooperation. This allows families to receive immediate help in times of financial hardship, effectively reducing their financial risks and vulnerabilities (O’Corry‐Crowe et al., 2020; Luisito, 2020).

Resource sharing and information flow within community support networks are particularly important, especially in low-income and resource-limited communities. In these communities, where traditional financial services may be difficult or inaccessible, informal financial services and resource support provided by community mutual aid networks have become a key way for families to cope with economic hardship. In addition, the model of mutual assistance and cooperation within the community helps to foster and strengthen mutual trust and solidarity among community members, further enhancing community cohesion and providing a more stable and supportive living environment for families.

Mutual aid networks institutionalize risk-sharing. For instance, Yasuyuki (2019) observed that post-disaster recovery rates in Japan correlated with pre-existing community cohesion. Complementary micro-level evidence from Sadeka et al. (2020) revealed that Bangladeshi households participating in rotating savings groups (ROSCAs) reduced debt default risks. Emerging debates in this area focus on: Network Structure Efficiency: Decentralized networks outperform hierarchical ones in resource allocation (Carmen et al., 2020; Will et al., 2023). Technology-Mediated Mutual Aid: Digital platforms amplify the reach of traditional networks but may erode interpersonal trust (Stefan, 2020).

In summary, the buffering effect of social relationship capital and community mutual aid networks is reflected in its ability to improve households’ access to information in the financial field, strengthen their financial support networks, and promote a culture of mutual assistance and cooperation within the community. Together, these mechanisms work to reduce the financial vulnerability of households, demonstrating the value of social capital in the economic well-being of households.

The moderating role of regional economic development

The level of regional economic development greatly influences the effectiveness of community mutual aid networks in reducing household financial vulnerability. In regions with higher economic development, these networks typically have access to more resources such as financial support, knowledge sharing, and skills exchange (Gde, 2023; Giuseppe, 2021; Hanne et al., 2019; Liz et al., 2021; Luis et al., 2021; Ryan et al., 2023; Takahiro and Rao, 2020; Cheng et al., 2021). This enables them to provide stronger financial support and risk-sharing mechanisms for households, ultimately leading to a more effective reduction in financial vulnerability. Conversely, in economically disadvantaged regions, community mutual aid networks may be just as active as in more affluent areas, but their impact on household financial vulnerability is relatively weak due to limited overall resources (Wu et al., 2023).

In addition, the level of regional economic development also indirectly affects the structure and function of community mutual aid networks. In areas with a higher level of economic development, community mutual aid networks tend to be more diverse, covering financial literacy training, emergency financial assistance, etc., providing all-around support for families (Daniel et al., 2023; Gunawan et al., 2022; Li et al., 2021). This diverse approach to mutual aid not only directly reduces the financial vulnerability of households but also strengthens their resilience to future risks. Conversely, in areas with low levels of economic development, community support networks may focus more on meeting basic living needs and play a more limited role in improving household financial stability and risk management.

Further, the level of regional economic development also affects the participation and willingness of community members to help each other. Studies have shown that community members are more likely to participate in community mutual aid activities in areas with better economic conditions, and mutual aid networks are more likely to attract individuals with professional skills and resources to join, thereby enhancing the resilience of the whole community (Giuseppe, 2021; Hanne et al., 2019; Nyagwegwe et al., 2022; Ryan et al., 2023; Takahiro and Rao, 2020). In economically disadvantaged areas, individuals may face greater economic pressures, leading to a decrease in their willingness and frequency to participate in community mutual aid activities. This, in turn, can impact the effectiveness of community mutual aid networks. Thus, the level of regional economic development plays a crucial role in determining the positive impact of community mutual aid networks in reducing household financial vulnerability.

Based on above, the following research hypotheses are proposed:

H1: Relational capital reduces household financial vulnerability.

H2: Community mutual aid networks reduce household financial vulnerability.

H3: The negative correlation between community mutual aid networks, social relationship capital, and household financial vulnerability is enhanced by the degree of regional economic development.

Empirical model and data description

Sample selection and variable description

The data used in this paper are derived from the China Family Panel Studies (CFPS) dataset from 2010 to 2020. The survey covered more than 14,000 households in 31 provinces, autonomous regions, and municipalities across the country, with a total of more than 40,000 respondents, and provided rich micro-data on family members’ socio-economic status, education, health, income, and expenditure, community participation, and social networks. The China Family Panel Studies (CFPS) conducts biennial tracking surveys. This longitudinal design allows for analyzing household dynamics and socioeconomic changes over time. Among the survey respondents, the sample was drawn from the main decision-makers of households, ensuring the representativeness and reliability of the data. The survey sample covers households in multiple regions and with different household registrations, which provides a rich empirical basis for studying community mutual aid networks, social relationship capital, and household financial vulnerability. After removing the sample of households with missing data, there were finally 11,029 family samples. The dataset includes 11,029 observations spanning six waves of surveys (conducted every two years), covering 1812 unique households. All analyses were conducted in Stata/MP 17.0.

Model identification and setting

Based on theoretical analysis, the following two-stage Least Squares Estimation (2SLS) model is constructed in order to identify the impact of community mutual aid network and social relationship capital on household financial vulnerability.

$${{\rm{Vulnerability}}}_{{\boldsymbol{i}},{\boldsymbol{t}}}={{\boldsymbol{\alpha }}}_{{\bf{0}}}+{{\boldsymbol{\alpha }}}_{{\bf{1}}}{{\bf{SocialCap}}}_{{\boldsymbol{i}},{\boldsymbol{t}}-{\bf{1}}}+{{\boldsymbol{\alpha }}}_{{\bf{2}}}{\rm{Controls}}+\sum {\rm{Year}}+{{\boldsymbol{\varepsilon }}}_{{\boldsymbol{i}},{\boldsymbol{t}}}$$
(1)
$${{\rm{Vulnerability}}}_{{\boldsymbol{i}},{\boldsymbol{t}}}={{\boldsymbol{\alpha }}}_{{\bf{0}}}+{{\boldsymbol{\alpha }}}_{{\bf{1}}}{{\bf{CommHelp}}}_{{\boldsymbol{i}},{\boldsymbol{t}}-{\bf{1}}}+{{\boldsymbol{\alpha }}}_{{\bf{2}}}{\rm{Controls}}+\sum \text{Year}+{{\boldsymbol{\varepsilon }}}_{{\boldsymbol{i}},{\boldsymbol{t}}}$$
(2)

Among them, the explanatory variable Vulnerability represents the financial vulnerability index of households in region i at year t. Household financial vulnerability is used to measure the degree of financial hardship faced by households. The data comes from the CFPS database, and financial vulnerability indicators may include lack of funds, high debt burden ratio, etc.

SocialCap represents the social relationship capital index of region i in the year t, measured by factors such as the frequency of mutual aid between households and participation in social organizations. Since these indicators are not easily quantifiable directly, it may be necessary to obtain the corresponding scores or indices through questionnaires in the CFPS. CommHelp is a dummy variable that indicates whether district i has an active community support network, determined by surveys or the level of participation in community activities such as community trust, neighborhood relations, and neighbor help participation. RegionMarket represents the level of economic and market-oriented development in region i, determined by China’s economic market-oriented development index. This index measures the relative progress of marketization and the level of economic development in each province, aiming to make the horizontal (between provinces) and vertical (cross-annual data of each province) comparisons of each index roughly comparable.

In the subsequent empirical test model, we will add the interactive items SocialCap×RegionMarket and CommHelp × RegionMarket. The coefficients β1 and β2 will be estimated as the parameters of interest in this paper. These coefficients measure the heterogeneous effects of increased social relationship capital and community mutual aid network activity on household financial vulnerability in different regions of economic development, respectively. If β is significantly less than zero, it indicates that in regions with better economic development, the increase of social capital and the activity of community mutual aid networks have a more significant impact on reducing household financial vulnerability. Controls are a set of variables used to control for household and regional factors, such as household income level, education level, employment status, etc., as well as regional economic development level and social welfare policies. In the regression model, regional and year fixed-effect controls were included to account for the impact of year and macroeconomic factors on household financial vulnerability. The robust standard misestimation method (robust) was utilized in the analysis. ε represents a random error term.

To address the issue of endogeneity in social relationship capital, the instrumental variable (IV) method was employed for estimation. The dilemma lies in the fact that the strengthening of social relational capital could be both a result and a driver of the economic advancement within the family, creating a two-way causal relationship. At the same time, some external factors that affect household financial vulnerability (such as changes in economic policies and market environment) may also affect the formation of social relationship capital, leading to the problem of missing variables.

Drawing on the processing strategies of the existing literature, the average level of social relationship capital of other households in the community was used as an instrumental variable. Theoretically, the level of social capital of other households in a community can affect the level of social capital of the whole community, but it does not directly affect the financial vulnerability of a particular household, satisfying the exogenous and correlation conditions of instrumental variables.

According to the above model and methodology, this paper selects the regional characteristics of households (such as regional size, economic development level) as the grouping basis to ensure that households in the same group are in a similar macroeconomic and social environment. These characteristics are correlated with the establishment of social relational capital and its impact on household financial vulnerability, so effective instrumental variables can be constructed based on these variables.

Descriptive statistical analysis

In terms of measuring household financial vulnerability, we measure the degree of financial difficulties faced by households according to the CFPS questionnaire to examine whether households have long-term savings and whether loans have been rejected. As shown in Table 1, the statistical results show a mean of 0.157 and a standard deviation of 0.364, indicating a large disparity in household financial vulnerability, similar to the income and wealth inequalities across countries identified by the United Nations.

Table 1 Indicator selection and descriptive statistical analysis results.
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When measuring social relationship capital, we utilize a series of questions in the CFPS to investigate the frequency of communication among family members and friends, as well as their level of trust in society. We determine the number of individuals that a community deems to be the most trustworthy, along with their corresponding score (ranging from 1 to 5) and the proportion they make up of all respondents. Trust is evaluated by the score assigned to the community within the overall sample. The presence of an active community mutual aid network is determined by factors such as community trust, neighborhood relationships, and participation in neighborly assistance. The degree of regional economic development in China is determined by the market-oriented development index. Statistical results show significant differences in the mean and standard deviation descriptions of social relationship capital, community mutual aid network, and the degree of regional economic development. Some interesting phenomena can be found from the sample data. In some special communities, such as areas with a high level of economic development or rich social resources, the community and its surroundings are widely trusted, and the community interaction network is more frequent.

In the sample, 52.6 per cent of the heads of households were male, a decrease from the 2010 baseline survey data. The average age of heads of household is 48 years old, which is lower than the average age in 2010. The education level of the head of household is 2.4 (roughly elementary to junior high school according to the CFPS technical report). Ten percent of the heads of households are members of organizations such as the Communist Party and democratic parties. The average household size is 3–4 people, with the head of household typically having average health. Fifty-four percent of families have children, and 26 percent have elderly dependents, both of which have increased since 2010 due to the “two-child” policy and the liberalization of the age structure. The average annual household income for the past year was 84,859.6 yen (equivalent to 12,448 US dollars), and the median was 53,850 yen (equivalent to 7,899 US dollars). This is closer to the average household income of the China General Social Survey (CGSS), another nationally representative sample, with a difference of less than a hundred dollars.

Empirical analysis

Baseline analysis of the impact of community mutual aid networks and social relationship capital on household financial vulnerability

The regression results are reported in Table 2. This study first uses the OLS method to estimate the impact of community mutual aid networks and social relationship capital on household financial vulnerability. The results in column 1 show that the critical coefficient (social capital) is significantly negative at the 1% level, and on average, household financial vulnerability decreases by 0.06 for a 1 unit increase in the index of Social Capital. Moreover, the result in column 2 shows that the critical coefficient is significantly negative at the 5% level, and on average, the existence of community mutual aid networks reduces household financial vulnerability by 0.03, other variables constant. Column 3 reports the estimation results of both community mutual aid networks and social relationship capital in the regression equation. It is found that the coefficient is always significantly negative as the characteristic variables of community mutual aid network and social relationship capital are included in the model, which confirms the hypothesis of this study, and shows that the enhancement of community mutual aid network and social relationship capital significantly reduces household financial vulnerability. At the same time, it can be observed that the characteristics of household income, household size, and household registration as a rural household have an impact on household financial vulnerability.

Table 2 Benchmark regression results.
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Endogeneity test

The results of the validity test for instrumental variables indicated that the estimation coefficient of IV was significantly negative at the 1% level. This suggests that the IV, estimated using the mean of family social relationship networks with similar characteristics, met the correlation requirements. The Cragg-Donald Wald F statistic in columns 1 to 3 of Table 3 is above 10, indicating that there is no risk of weak instrumental variables. Overall, instrumental variables are generally considered to be reliable. The results of the instrumental variable test indicate that the conclusion remains statistically significant.

Table 3 Instrumental variable method test.
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Robustness test

While these findings offer initial support for the influence of community mutual aid networks and social relationship capital on household financial vulnerability, there are several potential factors that could affect the results. This study delves into this topic through a thorough series of analyses.

(1) Adjust the measurement criteria for the socioeconomic status of the family. Households in the top 10% of household income were defined as high socioeconomic status households, i.e., HighSE = 1, respectively, and re-estimated. As shown in column 1 of Table 4, there is no significant change in the regression results (column 1 is consistent with column 3 of Table 3 and is the baseline result of regression). The results show that the higher the socioeconomic status of the family, the greater the positive impact of community mutual aid networks and social relationship capital on reducing financial vulnerability.

Table 4 Robustness test.
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(2) The strength of the community mutual aid network was measured by the participation of the family network. The strength of community mutual aid networks, which is measured by the frequency with which family members participate in community activities, may be affected by the time available to family members. In response to this issue, the study re-evaluated the participation of different types of family members in community mutual aid activities. The findings in column 2 of Table 4 indicate that the adjustments made to the measure of the community mutual aid network did not significantly affect the estimates, and the consistency was upheld.

(3) Transform the calculation method of the tool variables by considering the introduction of the variable ‘average number of years of education of family members’. The mean of similar family social relationship networks was recalculated as a new instrumental variable by the endowment of educational resources within the family. 2SLS estimation was carried out, and the results were reported in column 3 of Table 4. It was found that the estimation results were still robust.

(4) Exclude the influence of extreme values of the explanatory variables. The extremes of the maximum value of 1% and the minimum value of 1% of the financial vulnerability indicator were removed and re-estimated. As shown in column 4 the estimates were not affected.

(5) To ensure the accuracy of the data, the influence of special families was excluded by removing households with extremely favorable or disadvantaged economic conditions from the sample. The new estimates can be found in column 5 of Table 4 and are reported to remain robust.

(6) This paper examines the impact of community mutual aid networks and social relationship capital on household saving behavior, using the household savings rate as the explanatory variable. The estimates, as shown in column 6 of Table 4, remain consistent, confirming the significant positive impact of community mutual aid networks and social relationship capital on improving household financial security.

Heterogeneity analysis

Heterogeneous influence of regional development

The above results show that the enhancement of community mutual aid network and social relationship capital has a significant impact on reducing household financial vulnerability. However, it is important to note that this effect is heterogeneous among different communities.

Theoretical analysis suggests that strong community mutual aid networks and abundant social capital can provide financial and non-financial support to households, which may act as a buffer when families face financial difficulties. However, the effectiveness of this buffering effect may be related to the degree of regional economic development. If the region’s economic development is not sufficient, and the community mutual aid network cannot allocate and use resources efficiently, the support that households receive may not be enough to withstand financial risks. This could even worsen their financial vulnerabilities because of the unfair distribution of resources.

To examine whether community mutual aid networks and social relationship capital affect the degree of regional economic development to reduce household financial vulnerability, it is important to consider the efficiency of resource allocation and utilization. According to the relevant literature, the degree of regional economic development is related to the accessibility, equity, and responsiveness of resources in the community. First, a strong community mutual aid network can enhance trust and cooperation among members, increase the frequency of resource sharing and mutual assistance, and thus enhance the accessibility of resources. Second, rich social capital can facilitate the flow of information and resources within the community, help families receive support and assistance when they need it, and improve the efficiency of resource use. Finally, the activity of community mutual aid networks and the abundance of social capital may affect the responsiveness of communities to family needs, which in turn affects the financial vulnerability of households.

The results of the test are reported in Table 5 Column 1 shows the impact of regional economic development on the relationship between the activity of community mutual aid networks and household financial vulnerability. The results indicate a negative correlation between the activity of the community mutual aid network and the degree of regional economic development with the financial vulnerability of households. As can be seen in Fig. 1, this suggests that strengthening the community mutual aid network in accordance with the degree of regional economic development can enhance the opportunity for families to receive support and decrease the financial vulnerability of households.

Table 5 Heterogeneity analysis of regional development degree.
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Fig. 1
figure 1

Moderating effects of the degree of regional development on social capital.

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Column 2 reports on the impact of regional economic development on the relationship between social relations, capital richness, and household financial vulnerability. As can be seen in Fig. 2, the results show that the degree of regional economic development can increase the efficiency of resource utilization and reduce the financial vulnerability of households due to the abundance of social relationship capital.

Fig. 2
figure 2

Moderating effects of the degree of regional development on community mutual aid network.

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Column 3 shows the combined impact of community mutual aid networks and social relationship capital, as well as the degree of regional economic development, on household financial vulnerability. The results show that household financial vulnerability is significantly reduced in areas with regional economic development.

The above results demonstrate that community mutual aid networks and social relationship capital can enhance the efficiency of resource allocation and utilization by contributing to regional economic development. Additionally, they can help reduce the financial vulnerability of households, thus confirming the hypothesis. This paper aims to investigate the mechanism through which community mutual aid networks and social relationship capital impact household financial vulnerability by conducting a thorough analysis of CFPS data. The study found that the closeness of community mutual aid networks and the abundance of social capital significantly reduced the financial vulnerability of households, especially in areas with a high degree of regional economic development. These findings not only provide a new perspective for understanding household financial vulnerability, but also have important implications for promoting community development and enhancing social cohesion.

There are several other possible explanations for the reduction in household financial vulnerability. One potential reason could be an increase in household income due to improved job opportunities or higher wages. Another factor could be a decrease in household debt levels, either through debt repayment or refinancing at lower interest rates. Additionally, households may have built up their savings and emergency funds, providing a buffer against financial shocks. Finally, government policies or programs aimed at promoting financial stability and resilience could also play a role in reducing household financial vulnerability.

In addition to the effects of community mutual aid networks and social relationship capital, there may be other explanations for the reduction in household financial vulnerability. One possible explanation is the improvement of the economic and social environment within the community. The development of the community economy and the optimization of the social environment may lead to improved economic conditions for families, reducing the financial vulnerability of the family accordingly.

However, the improvement of the economic and social environment of the community often takes a long time, and is closely related to the establishment and development of community mutual aid networks and social relationship capital. Thus, while improvements in the economic and social environment may have a positive impact on household financial vulnerability, the root cause may still lie in the strengthening of community mutual aid networks and social relationship capital.

Conclusion

The rapid development of mobile Internet and information technology has not only changed people’s lifestyles but has also provided a new platform for forming community mutual aid networks and social relationship capital. It has also advanced the research on household financial vulnerability, entering a new stage of development. The advancement of modern communication technology, especially the popularization of social media, has greatly promoted the exchange of information and resource sharing among community members, bringing new opportunities for the development of community mutual aid networks. At the same time, the formation and development of social relationship capital, as an important resource for families to resist financial risks, has also been profoundly affected by information technology.

This paper examines the correlation between community mutual aid networks, social capital, and household financial vulnerability from 2010 to 2020 by utilizing data from the China Family Panel Studies (CFPS). The CFPS data offered a plethora of household micro-data, such as the socioeconomic status of family members, levels of community engagement, and social network characteristics, which served as a solid foundation for this study. This paper explores how social relationship capital and community mutual aid networks affect household financial security through multiple mechanisms by comprehensively analyzing the level of social relationship capital, the activity of community mutual aid networks, and the indicators of household financial vulnerability.

The results show that the closeness of community mutual aid networks and the abundance of social capital significantly reduce the financial vulnerability of households. Specifically, the enhancement of community mutual aid networks and the enhancement of social relationship capital reduce the likelihood of households facing financial risks by increasing their access to resources when coping with economic hardship. However, the mechanisms behind this impact vary among different communities and households. They are complex and diverse, involving multiple factors such as the degree of regional economic development, the quality of social capital, the availability of community resources, and the economic status of households.

The findings of this paper have important implications for policymakers. First and foremost, it is necessary to recognize the importance of strengthening community mutual aid networks and promoting the formation of social relationship capital, which positively impacts the financial security of households. Second, policymakers should consider measures to encourage resource sharing and mutual assistance within the community, such as promoting mutual support and assistance among community members through the organization of social activities and the construction of social platforms. Finally, quality treatment of female-headed households, improving the level of household financial education, and the popularization of financial services are also effective ways to reduce household financial vulnerability.

With the development of mobile Internet and information technology, modern society has provided new possibilities for the development of community mutual aid networks and social relationship capital. However, how to effectively use these technological advantages to improve the financial security of families still needs more research and practical exploration. Future research could further explore how information technology affects the formation mechanisms of community mutual aid networks and social relationship capital, and how these changes affect households’ financial vulnerability.