TBU Publications
Repository of TBU Publications

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

DSpace Repository

Show simple item record

dc.title The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam en
dc.contributor.author Nguyen, Thi Anh Nhu
dc.contributor.author Rózsa, Zoltán
dc.contributor.author Belás, Jaroslav
dc.contributor.author Belásová, Ľudmila
dc.relation.ispartof Journal of International Studies
dc.identifier.issn 2071-8330 Scopus Sources, Sherpa/RoMEO, JCR
dc.date.issued 2017
utb.relation.volume 10
utb.relation.issue 2
dc.citation.spage 278
dc.citation.epage 291
dc.type article
dc.language.iso en
dc.publisher Centre of Sociological Research
dc.identifier.doi 10.14254/2071-8330.2017/10-2/19
dc.relation.uri http://www.jois.eu/?347,en_the-effects-of-perceived-and-actual-financial-knowledge-on-regular-personal-savings-case-of-vietnam
dc.subject Actual financial knowledge en
dc.subject Financial literacy en
dc.subject Perceived financial knowledge en
dc.subject Saving behaviour en
dc.description.abstract 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. © Foundation of International Studies and CSR, 2017. en
utb.faculty Faculty of Management and Economics
dc.identifier.uri http://hdl.handle.net/10563/1007508
utb.identifier.obdid 43876606
utb.identifier.scopus 2-s2.0-85029926401
utb.source j-scopus
dc.date.accessioned 2017-10-16T14:43:40Z
dc.date.available 2017-10-16T14:43:40Z
dc.rights Attribution 3.0 Unported
dc.rights.uri https://creativecommons.org/licenses/by/3.0/
dc.rights.access openAccess
utb.contributor.internalauthor Nguyen, Thi Anh Nhu
utb.contributor.internalauthor Belás, Jaroslav
utb.fulltext.affiliation Thi Anh Nhu Nguyen Tomas Bata University in Zlin, Zlin, Czech Republic Email: anhnhu80@gmail.com Zoltán Rózsa School of Economics and Management in Public Administration in Bratislava, Bratislava, Slovak Republic Email: zoltan@rozsa.sk Jaroslav Belás Tomas Bata University in Zlin, Zlin, Czech Republic Email: belas111@gmail.com Ľudmila Belásová University of Presov Presov, Slovak Republic Email: ludmila.belasova@unipo.sk
utb.fulltext.dates Received: October, 2016 1st Revision: March, 2017 Accepted: May, 2017
utb.fulltext.references Allgood, S., & Walstad, W. (2011). The effects of perceived and actual financial knowledge on credit card behavior. Networks Financial Institute Working Paper, (15). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1896365 Australia, & Financial Literacy Foundation. (2007). Financial literacy: Australians understanding money. Canberra: Financial Literacy Foundation. Bateman, H., Eckert, C., Geweke, J., Louviere, J., Thorp, S., & Satchell, S. (2012). Financial Competence and Expectations Formation: Evidence from Australia*: Financial Competence and Expectations Formation. Economic Record, 88(280), 39–63. https://doi.org/10.1111/j.1475-4932.2011.00766.x Benjamin, D. J., Brown, S. A., & Shapiro, J. M. (2013). Who is "behavioral"? Cognitive ability and anomalous preferences. Journal of the European Economic Association, 11(6), 1231–1255. https://doi.org/10.1111/jeea.12055 Braunstein, S., & Welch, C. (2002). Financial literacy: An overview of practice, research, and policy. Fed. Res. Bull., 88, 445. Calcagno, R., & Monticone, C. (2015). Financial literacy and the demand for financial advice. Journal of Banking & Finance, 50, 363–380. https://doi.org/10.1016/j.jbankfin.2014.03.013 Capuano, A., & Ramsay, I. (2011). What causes suboptimal financial behaviour? An exploration of financial literacy, social influences and behavioural economics. An Exploration of Financial Literacy, Social Influences and Behavioural Economics (March 23, 2011). Melbourne Legal Studies Research Paper, (540). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1793502 Carpena, F., Cole, S. A., Shapiro, J., & Zia, B. (2011). Unpacking the causal chain of financial literacy. World Bank Policy Research Working Paper Series. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1930818 Chudzian, J., Aniola-Mikolajczak, P., & Pataraia, L. (2015). Motives and Attitudes for Saving among Young Georgians, Economics & Sociology, 8(1), 165-188. Clark, G. L., & Strauss, K. (2008). Individual pension-related risk propensities: the effects of socio-demographic characteristics and a spousal pension entitlement on risk attitudes. Ageing and Society, 28(6), 847-874. https://doi.org/10.1017/S0144686X08007083 Courchane, M., Gailey, A., & Zorn, P. (2008). Consumer credit literacy: What price perception? Journal of Economics and Business, 60(1–2), 125–138. https://doi.org/10.1016/j.jeconbus.2007.08.003 Davey, G., & Resnik, P. (2008). Risk Tolerance, Risk Profiling and the Financial Planning Process. FinaMetrica Pty Limited. Disney, R., Gathergood, J., & Weber, J. (2015). Credit counseling: a substitute for consumer financial literacy? Journal of Pension Economics and Finance, 14(4), 466–491. https://doi.org/10.1017/S1474747215000219 Dohmen, T., Falk, A., Huffman, D., & Sunde, U. (2010). Are Risk Aversion and Impatience Related to Cognitive Ability? American Economic Review, 100(3), 1238–1260. https://doi.org/10.1257/aer.100.3.1238 Gallery, N., Newton, C., & Palm, C. (2011). Framework for assessing financial literacy and superannuation investment choice decisions. Australasian Accounting Business & Finance Journal, 5(2), 3–12. Glova, J., & Gavurova, B. (2012). Perspectives in Assessment of Intellectual Capital. Hradecke ekonomicke dny, 2012, PT I, Edited by: Jedlicka, P., 10th International Scientific Conference on Hradec Economic Days 2012: Economic Development and Management of Regions, Hradec Kralove, pp. 73-78. Henager, R., & Mauldin, T. (2015). Financial Literacy: The Relationship to Saving Behavior in Low- to Moderate- income Households. Family and Consumer Sciences Research Journal, 44(1), 73–87. https://doi.org/10.1111/fcsr.12120 Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Fed. Res. Bull., 89, 309. Hung, A., Parker, A. M., & Yoong, J. (2009). Defining and measuring financial literacy. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1498674 Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316. Jappelli, T., & Padula, M. (2013). Investment in financial literacy and saving decisions. Journal of Banking & Finance, 37(8), 2779–2792. https://doi.org/10.1016/j.jbankfin.2013.03.019 Jappelli, T., & Padula, M. (2015). Investment in financial literacy, social security, and portfolio choice. Journal of Pension Economics and Finance, 14(4), 369–411. https://doi.org/10.1017/S1474747214000377 Kahneman, D., & Krueger, A. B. (2006). Developments in the measurement of subjective well-being. The Journal of Economic Perspectives, 20(1), 3–24. Leonard, M. D. L. (2012). Risk preferences and expected utility: Evidence from labor supply data. Economic Inquiry, 50(1), 264–276. https://doi.org/10.1111/j.1465-7295.2011.00389.x Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of Pension Economics and Finance, 10(4), 497–508. https://doi.org/10.1017/S1474747211000448 Lusardi, A., & Mitchell, O. S. (2014). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44. doi:10.1257/jel.52.1.5 Lusardi, A., & Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics & Finance, 14(4), 332-368. doi:10.1017/s1474747215000232 Mahdzan, N. S., & Tabiani, S. (2013). The Impact of Financial Literacy on Individual Saving: An Exploratory Study in the Malaysian Context. Transformation in Business & Economics, 12(1), 54–69. McCarthy, E. (2009). Time for another look at client risk tolerance? Journal of Financial Planning, 18-24. Moore, D. (2003). Survey of financial literacy in Washington State: Knowledge, behavior, attitudes and experiences. Technical report 03-39. Social and Economic Sciences Research Center, Washington State University. Newman, C., Tarp, F., Van den Broeck, K., Quang, C. T., & Khai, L. D. (2008). Household Savings in Vietnam: Insights from a 2006 rural household survey. Retrieved from https://mpra.ub.uni-muenchen.de/62453/ OECD. (2013). PISA 2012 Assessment and Analytical Framework. OECD Publishing. Retrieved from http://www.oecd-ilibrary.org/education/pisa-2012-assessment-and-analytical-framework_9789264190511-en Orton, L. (2007). Financial literacy: Lessons from international experience. Canadian Policy Research Networks, Incorporated. Retrieved from http://rcrpp.ca/documents/48647_EN.pdf Parker, A. M., Bruin, W. B., Yoong, J., & Willis, R. (2012). Inappropriate Confidence and Retirement Planning: Four Studies with a National Sample: Confidence and Retirement Planning. Journal of Behavioral Decision Making, 25(4), 382–389. https://doi.org/10.1002/bdm.745 Pudło, P., & Gavurova, B. (2012). Experimental learning in higher education, using simulation games as learning tool. 12th International Multidisciplinary Scientific Geoconference, SGEM 2012, Vol. III, Book Series: International Multidisciplinary Scientific GeoConference-SGEM, 2012, 1093-1100. Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276-295. Robb, C. A., & Woodyard, A. (2011). Financial knowledge and best practice behavior. Journal of Financial Counseling and Planning, 22(1). Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2061308 van Rooij, M. C. J., Kool, C. J. M., & Prast, H. M. (2007). Risk-return preferences in the pension domain: Are people able to choose? Journal of Public Economics, 91(3-4), 701-722. Retrieved from https://doi.org/10.1016/j.jpubeco.2006.08.003 van Rooij, M. C. J., Lusardi, A., & Alessie, R. J. M. (2012). Financial Literacy, Retirement Planning and Household Wealth. The Economic Journal, 122(560), 449-478. Retrieved from https://doi.org/10.1111/j.1468-0297.2012.02501.x van Rooij, M. C. J, Lusardi, A., & Alessie, R. J. M. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472. Retrieved from https://doi.org/10.1016/j.jfineco.2011.03.006 Xiao, J. J., Collins, M. C., Ford, M., Keller, P., Kim, J., & Robles, B. (2010). A review of financial behaviour research: Implications for financial education. Paper presented at the meeting of the National Endowment for Financial Education Implications of Personal Finance Research Colloquium, Seattle, WA. Zhuk, M. (2015). Macroeconomic Determinants of Household Savings in Ukraine. Economics & Sociology, 8(3), 41-54.
utb.fulltext.sponsorship The authors are thankful to the Internal Grant Agency of FAME TBU No. IGA/FaME/2017/010: Financial Constraints on Economic Activities, for financial support to carry out this research.
utb.scopus.affiliation Tomas Bata University in Zlin, Zlin, Czech Republic; School of Economics and Management in Public Administration in Bratislava, Bratislava, Slovakia; University of Presov, Presov, Slovakia
Find Full text

Files in this item

Show simple item record

Attribution 3.0 Unported Except where otherwise noted, this item's license is described as Attribution 3.0 Unported