Influence of financial literacy and financial attitude on financial behaviors of students in Ho Chi Minh City, 2022

THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY OF BANKING

NGUYỄN THỊ TƯỜNG VY

INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL

ATTITUDE ON FINANCIAL BEHAVIORS OF STUDENTS IN

HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

HO CHI MINH CITY, 2022

THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH UNIVERSITY OF BANKING

NGUYỄN THỊ TƯỜNG VY

INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL

ATTITUDE ON FINANCIAL BEHAVIORS OF STUDENTS IN

HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 7340201

SUPERVISOR

NGUYEN THI MY HANH, PHD

HO CHI MINH CITY, 2022

i

ABSTRACT

The thesis studies the impact of financial literacy and financial attitude on

financial behaviors. This empirical study was conducted on students at Ho Chi

Minh University of Banking and students at universities in Ho Chi Minh City to

explain the financial behaviors of students, which are rarely chosen as research

subjects. Using quantitative research method, the research paper distributes online

questionnaires to students to answer online, then from the collected data, the

research uses EFA method to process and analyze data. The results found that

financial literacy and financial attitude had no impact on students' financial

behaviors. Some recommendations for improving financial literacy indicators,

financial attitude and financial behaviors for students will also be discussed.

ii

AUTHOR’S DECLARATION

I hereby confirm that this thesis entitled “Influence of financial literacy and

financial attitude on financial behaviors of students in Ho Chi Minh City”, is my

own work, and none of this work has been published before submission.

Ho Chi Minh City, August 2022

NGUYEN THI TUONG VY

iii

ACKNOWLEDGEMENTS

I would like to express my deep gratitude to all the teachers at Ho Chi Minh

University of Banking who have always been dedicated to imparting and teaching

me a lot of useful knowledge and skills, and always creating favorable conditions

for me to learn and develop.

I would like to sincerely thank Dr. Nguyen Thi My Hanh for always

accompanying and supporting me in the process of completing my graduation

thesis. The contributions of Dr. Nguyen Thi My Hanh are valuable knowledge for

my thesis.

Finally, I would like to thank my family for always supporting me as well

as those who participated in the survey so that I could complete the thesis.

iv

TABLE OF CONTENTS

ABSTRACT............................................................................................................... i

LIST OF ACRONYMS.......................................................................................... vii

LIST OF FIGURES .............................................................................................. viii

LIST OF TABLES .................................................................................................. ix

CHAPTER 1: INTRODUCTION............................................................................1

1.1 Rationale of the study..................................................................................1

1.2 Research objectives and questions.................................................................3

1.2.1 General objective.......................................................................................3

1.2.2 Specific objectives......................................................................................3

1.3 Research questions...........................................................................................3

1.4 Research subject and scope.............................................................................3

1.5 Research methodology.....................................................................................4

1.6 Structure of the thesis......................................................................................4

Summary of Chapter 1..........................................................................................5

CHAPTER 2: LITERATURE REVIEW................................................................6

2.1 Guiding conceptual framework......................................................................6

2.2 Financial behavior ...........................................................................................8

2.3 Financial literacy .............................................................................................9

2.4 Financial attitude ...........................................................................................10

2.5 Financial literacy and its significant association with financial behavior10

2.6 Financial attitude and its significant association with financial behavior11

2.7 Review of previous studies............................................................................12

Summary of Chapter 2........................................................................................13

CHAPTER 3: METHODOLOGY.........................................................................14

3.1 Research process............................................................................................14

3.2 Hypotheses and proposed model ..................................................................15

3.3 Sample and sample size .................................................................................16

3.4 Survey design .................................................................................................17

3.5 Research variables and scale design ............................................................18

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3.6 Data analysis...................................................................................................20

3.6.1 Build and verify the quality of the scale................................................21

3.6.1.1 Descriptive statistics..........................................................................21

3.6.1.2 Cronbach’s Alpha .............................................................................21

3.6.2 Exploratory Factor Analysis ..................................................................22

3.6.3 Multivariate linear regression analysis.................................................24

Summary of Chapter 3........................................................................................25

CHAPTER 4: RESEARCH RESULTS AND DISCUSSION .............................26

4.1 Results obtained at Ho Chi Minh University of Banking ..........................26

4.1.1 Characterisctics of sample......................................................................26

4.1.2 Verify the quality of the scale.................................................................27

4.1.3 Exploratory Factor Analysis ..................................................................31

4.1.3.1 Independent variables ......................................................................31

4.1.3.2 Dependent variable ...........................................................................34

4.1.4 Correlation analysis ................................................................................36

4.1.5 Multivariate linear regression analysis.................................................37

4.2 Results obtained at other universities in Ho Chi Minh City .....................38

4.2.1 Characteristics of sample........................................................................38

4.2.2 Verify the quality of the scale.................................................................40

4.2.3 Exploratory Factor Analysis ..................................................................43

4.2.3.1 Independent variables ......................................................................43

4.2.3.2 Dependent variable ...........................................................................47

4.2.4 Correlation analysis ................................................................................48

4.2.5 Multivariate linear regression analysis.................................................49

4.3 Discussion .......................................................................................................50

Summary of Chapter 4........................................................................................54

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS.......................55

5.1 Conclusions.....................................................................................................55

5.2 Recommendations..........................................................................................55

5.2.1 Financial literacy .....................................................................................55

5.2.2 Financial attitude.....................................................................................57

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5.2.3 Financial behavior...................................................................................57

5.3 Limitations and future research directions.................................................58

Summary of Chapter 5........................................................................................58

REFERENCES........................................................................................................59

APPENDIX ..............................................................................................................67

vii

LIST OF ACRONYMS

Acronyms Meaning

EFA Exploratory Factor Analysis

FA Financial attitude

FB Financial behaviors

FL Financial literacy

TPB Theory of planned behavior

TRA Theory of reasoned action

viii

LIST OF FIGURES

Figure 2.1: Theory of planned behavior................................................................... 7

Figure 2.2: Adaptation of the Deacon- Firebaugh Model........................................ 8

Figure 3.1: Research process.................................................................................... 15

Figure 3.2: Proposed research model....................................................................... 16

Figure 3.3: The process of developing the questionnaire ........................................ 17

Figure 3.4: Summary of research variables ............................................................. 18

Figure 3.5: Measurement scale and code of variables............................................. 19

Figure 3.6: Reliability scores and meaning.............................................................. 21

ix

LIST OF TABLES

Table 4.1: Characterisctics of sample .......................................................................27

Table 4.2: Scale reliability testing of financial attitude ............................................28

Table 4.3: Scale reliability testing of financial literacy ............................................29

Table 4.4: Scale reliability testing of financial behavior ..........................................30

Table 4.5: Exploratory factor analysis for independent variables ............................32

Table 4.6: Exploratory factor analysis for dependent variable .................................35

Table 4.7: Pearson correlation...................................................................................36

Table 4.8: Model summary .......................................................................................37

Table 4.9: ANOVA ...................................................................................................37

Table 4.10: Coefficients............................................................................................38

Table 4.11: Characterisctics of sample .....................................................................39

Table 4.12: Scale reliability testing of financial attitude of other universities.........40

Table 4.13: Scale reliability testing of financial literacy of other universities.........41

Table 4.14: Scale reliability testing of financial behavior of other universities.......42

Table 4.15: Exploratory factor analysis for independent variables of other

universities ................................................................................................................46

Table 4.16: Exploratory factor analysis for dependent variables of other universities

...................................................................................................................................48

Table 4.17: Pearson correlation of other universities ...............................................49

Table 4.18: Model summary of other universities....................................................50

Table 4.19: ANOVA of other universities................................................................50

Table 4.20: Coefficients of other universities...........................................................50

Table 4.21: Summary of research results................................................................. 49