In recent years, with the development of economic reform, people’s quality of livelihood has developed greatly. “Livelihood finance” has become hot words. Under the “new normal”, China want to achieve the goal of building a moderately prosperous society and let people have more sense of the happiness not only need to transform the economic development mode as well as to tap the potential of domestic demand. This article focuses on the analysis about the current situation of livelihood finance and consumption, especially focused on the relationship about the effect of the people’s livelihood expenditure on household consumption. Based on the data of China’s livelihood fiscal expenditure and the level of consumption from 1978 to 2014, empirical test results shows livelihood expenditure on household consumption has a positive effect, increasing financial expenditure in the field of people’s livelihood can help improve the level of consumption, and promote the welfare of the people’s livelihood. Finally the article concludes with a corresponding optimization measures and recommendation based on the analysis results.
Keywords: livelihood expenditure on household consumption, household consumption, level growth of economic, sense of gain