Impact of Financial Literacy on Vietnamese Students’ Spending Management
Main Article Content
Abstract
The study was carried out to evaluate the impact of financial literacy by considering the influence of three components: Financial Attitude, Financial Knowledge and Financial Behavior on students’ spending management. The article used a combination of qualitative and quantitative research (through Structural Equation Modeling - SEM) to evaluate. The results showed that financial knowledge and financial attitude do not influence students’ spending management, while financial behavior and influence of parents are statistically significant factors. Primarily, financial behavior has the most prominent influence. From the research results, the author has made some policy implications for relevant agencies to improve the influence of parents on children and to improve students' financial behaviour.
Keywords:
Financial literacy, financial behavior, spending management, student.
References
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Ajzen, I. (1991). The theory of planned behavior. Orgnizational Behavior and Human Decision Processe, 50, 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Albeerdy, M. I., & Gharleghi, B. (2015). Determinants of the financial literacy among college students in Malaysia. International Journal of Business Administration, 6(3), 15-24.
doi: 10.5430/ijba.v6n3p15
Atkinson, A., & Messy, F. A. (2012). Measuring Financial Literacy: Results of the OECD/ International Network on Financial Education (INFE) Pilot Study: OECD Publishing.
Hair, J. J. F. et al. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM): Sage Publications.
Hasan, M. et al. (2021). How does financial literacy impact on inclusive finance? Financial Innovation, 7(1), 1-23. https://doi.org/10.1186/s40854-021-00259-9
Herdjiono, I., & Damanik, L. A. (2016). Pengaruh financial attitude, financial knowledge, parental income terhadap financial management behavior. Journal of Theory Applied Management, 9(3), 226-241. dhttps://doi.org/10.20473/jmtt.v9i3.3077
Jayaraman, J., & Jambunathan, S. (2018). Financial literacy among high school students: Evidence from India. Citizenship, Social and Economics Education, 17(3), 168-187. https://doi.org/10.1177/2047173418809712
Kaiser, T. et al. (2021). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics. https://doi.org/10.1016/j.jfineco.2021.09.022
Louw, J., Fouché, J., & Oberholzer, M. (2013). Financial literacy needs of South African third-year university students. International Business Economics Research Journal, 12(4), 439-450. https://doi.org/10.19030/iber.v12i4.7742
Lusardi, A. et al. (2021). Building up financial literacy and financial resilience. Mind & Society, 20(2), 181 - 187. https://doi.org/10.1007/s11299-020-00246-0
Lusardi, A. et al. (2017). Optimal financial knowledge and wealth inequality. Journal of political Economy, 125(2), 431-477.
Lusardi, A. et al. (2020). Assessing the impact of financial education programs: A quantitative model. Economics of Education Review, 78, 1-13 . https://doi.org/10.1016/j.econedurev.2019.05.006
Lusardi, A., & Mitchell, O. S. (2007). Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of Monetary Economics, 54(1), 205-224.
Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics Finance, 10(4), 497-508.
Mandell, L., & Klein, L. S. (2009). The impact of financial literacy education on subsequent financial behavior. Journal of Financial Counseling Planning, 20(1),
15-24.
Michaud, P. C., & Mitchell, O. S. (2017). Optimal financial literacy and wealth inequality. Journal of Political Economy, 125(2), 431-477. https://doi.org/10.1086/690950
Nguyen, D. T. (2017). Factors affecting financial literacy of Vietnamese adults: a case study for Hanoi and nghe an. VNU Journal of Economic and Business, 33(2). https://doi.org/10.25073/2588-1108/vnueab.4084
Nicolini, G. et al. (2013). Financial literacy: A comparative study across four countries. International Journal of Consumer Studies, 37(6), 689-705. https://doi.org/10.1111/ijcs.12050
OECD. (2013). Improving financial education effectiveness through behavioural economics: OECD key findings and way forward (Vol. 1): OECD Publishing.
OECD. (2015). OECD/INFE Toolkit for Measuring Financial Literacy and Financial Inclusion: OECD Publishing.
Potrich, A. C. G. et al. (2015). Determinants of financial literacy: Analysis of the influence of socioeconomic and demographic variables. Revista Contabilidade Finanças, 26(69), 362-377. https://doi.org/10.1590/1808-057x201501040
Rai, K., Dua, S., & Yadav, M. (2019). Association of financial attitude, financial behaviour and financial knowledge towards financial literacy: A structural equation modeling approach. FIIB Business Review, 8(1), 51-60. https://doi.org/10.1177/2319714519826651
Robb, C. A., & Sharpe, D. L. (2009). Effect of personal financial knowledge on college students’ credit card behavior. Journal of Financial Counseling Planning, 20(1), 25-43.
Scheresberg, C. B. (2013). Financial literacy and financial behavior among young adults: Evidence and implications. Numeracy, 6(2), 1-21. http://dx.doi.org/10.5038/1936-4660.6.2.5
Sekar, M., & Gowri, M. (2015). A study on financial literacy and its determinants among generation Y employees in Coimbatore city. Great Lakes Herald, 9(1), 35-45.
Thomas, B., & Subhashree, P. (2020). Factors that influence the financial literacy among engineering students. Procedia Computer Science, 172, 480-487. https://doi.org/10.1016/j.procs.2020.05.161
Xiao, J. J. (2008). Applying behavior theories to financial behavior. In Handbook of Consumer Finance Research (pp. 69-81): Springer.
Yong, C. C. et al. (2018). Financial knowledge, attitude and behaviour of young working adults in Malaysia. Institutions and Economies, 10(4), 21 - 48.