The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam

The paper examines the factors, which affect decision-making on regular personal saving behaviour in the context of an emerging market in Vietnam. Focusing on financial literacy, the paper uses a combined measure of actual financial knowledge and a self-assessment of overall financial knowledge. The...

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Main Authors: Thi Anh Nhu Nguyen, Zoltán Rózsa, Jaroslav Belás, Ľudmila Belásová
Format: Article
Language:English
Published: Centre of Sociological Research, Szczecin 2017-06-01
Series:Journal of International Studies
Subjects:
Online Access:http://www.jois.eu/?347,en_the-effects-of-perceived-and-actual-financial-knowledge-on-regular-personal-savings-case-of-vietnam
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author Thi Anh Nhu Nguyen
Zoltán Rózsa
Jaroslav Belás
Ľudmila Belásová
author_facet Thi Anh Nhu Nguyen
Zoltán Rózsa
Jaroslav Belás
Ľudmila Belásová
author_sort Thi Anh Nhu Nguyen
collection DOAJ
description The paper examines the factors, which affect decision-making on regular personal saving behaviour in the context of an emerging market in Vietnam. Focusing on financial literacy, the paper uses a combined measure of actual financial knowledge and a self-assessment of overall financial knowledge. The sample of the study consists of 240 commercial banks customers selected in 12 branches of four banks in Ho Chi Minh City. The questionnaire covers: (1) actual financial knowledge; (2) self-rating of financial knowledge; (3) financial risk tolerance; and (4) demographic characteristics of the respondents. The results of a logistic regression analysis show that perceived and actual financial literacy have separate effects on regular personal saving. Particularly, actual financial knowledge has a statistically significant positive relationship with regular personal saving with odds ratio higher than 6.5 times. However, perceived financial knowledge and financial risk tolerance factor are not statistically significant with regular personal saving. Finally, this paper offers evidence that the interaction variable, which is used to combine education level with their major study, has a statistically significant relationship with regular personal saving.
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publishDate 2017-06-01
publisher Centre of Sociological Research, Szczecin
record_format Article
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spelling doaj-art-2f99d0803d724fec933061aaa86b99392025-08-20T02:01:47ZengCentre of Sociological Research, SzczecinJournal of International Studies2071-83302306-34832017-06-0110210.14254/2071-8330.2017/10-2/19The effects of perceived and actual financial knowledge on regular personal savings: Case of VietnamThi Anh Nhu Nguyen0Zoltán Rózsa1Jaroslav Belás2Ľudmila Belásová3Tomas Bata University in ZlinTomas Bata University in ZlinTomas Bata University in ZlinUniversity of PresovThe paper examines the factors, which affect decision-making on regular personal saving behaviour in the context of an emerging market in Vietnam. Focusing on financial literacy, the paper uses a combined measure of actual financial knowledge and a self-assessment of overall financial knowledge. The sample of the study consists of 240 commercial banks customers selected in 12 branches of four banks in Ho Chi Minh City. The questionnaire covers: (1) actual financial knowledge; (2) self-rating of financial knowledge; (3) financial risk tolerance; and (4) demographic characteristics of the respondents. The results of a logistic regression analysis show that perceived and actual financial literacy have separate effects on regular personal saving. Particularly, actual financial knowledge has a statistically significant positive relationship with regular personal saving with odds ratio higher than 6.5 times. However, perceived financial knowledge and financial risk tolerance factor are not statistically significant with regular personal saving. Finally, this paper offers evidence that the interaction variable, which is used to combine education level with their major study, has a statistically significant relationship with regular personal saving.http://www.jois.eu/?347,en_the-effects-of-perceived-and-actual-financial-knowledge-on-regular-personal-savings-case-of-vietnamfinancial literacyactual financial knowledgeperceived financial knowledgesaving behaviour
spellingShingle Thi Anh Nhu Nguyen
Zoltán Rózsa
Jaroslav Belás
Ľudmila Belásová
The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
Journal of International Studies
financial literacy
actual financial knowledge
perceived financial knowledge
saving behaviour
title The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
title_full The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
title_fullStr The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
title_full_unstemmed The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
title_short The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam
title_sort effects of perceived and actual financial knowledge on regular personal savings case of vietnam
topic financial literacy
actual financial knowledge
perceived financial knowledge
saving behaviour
url http://www.jois.eu/?347,en_the-effects-of-perceived-and-actual-financial-knowledge-on-regular-personal-savings-case-of-vietnam
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