THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY, 2022 HO CHI MINH CITY UNIVERSITY OF BANKING HOCHIMINH UNIVERSITYOF BANKING BUI NGUYEN THIEN PHUC FACTORS AFFECTING PERSON[.]
THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF BANKING HOCHIMINH UNIVERSITYOF BANKING BUI NGUYEN THIEN PHUC FACTORS AFFECTING PERSONAL FINANCIAL MANAGEMENT BEHAVIOR: EVIDENCE FROM VIETNAM GRADUATION THESIS MAJOR: FINANCE - BANKING CODE: 7340201 HO CHI MINH CITY UNIVERSITY OF BANKING HO CHI MINH CITY, 2022 THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HOCHIMINH UNIVERSITY OF BANKING STUDENT: BUI NGUYEN THIEN PHUC ID: 030805170130 CLASS: HQ5 – GE02 FACTORS AFFECTING PERSONAL FINANCIAL MANAGEMENT BEHAVIOR: EVIDENCE FROM VIETNAM GRADUATION THESIS MAJOR: FINANCE - BANKING CODE: 7340201 SUPERVISOR NGUYEN THI MY HANH, PHD HO CHI MINH CITY, 2022 ABSTRACT When it comes to the Covid-19 pandemic, it makes people think of many negative stories However, somewhere, the Covid-19 pandemic has brought positive changes for many people in terms of personal financial management behavior This study provides empirical evidence that the Covid-19 pandemic and many other factors such as financial attitudes, financial well-being, and financial socialization have an impact on personal financial management behavior However, the study also had another surprising result that financial knowledge did not affect personal financial management behavior Because of this research result, the research team suggest that there should be a change in financial education in schools Key words: Personal financial management behavior, financial knowledge, financial attitude, financial well-being, financial socialization, Covid-19 i TÓM TẮT Khi nhắc tới đại dịch Covid-19, khiến nhiều người nghĩ tới nhiều câu chuyện tiêu cực Tuy nhiên, khía cạnh khác, đại dịch Covid-19 mang lại thay đổi tích cực cho nhiều người hành vi quản lý tài cá nhân Bài nghiên cứu cung cấp chứng thực nghiệm cho thấy đại dịch Covid-19 nhiều yếu tố khác thái độ tài chính, hạnh phúc tài chính, xã hội hố tài có tác động tới hành vi quản lý tài cá nhân Tuy nhiên, nghiên cứu có kết bất ngờ khác kiến thức tài khơng ảnh hưởng tới hành vi quản lý tài cá nhân Chính kết nghiên cứu khiến tác giả đề xuất việc cần có thay đổi giáo dục tài trường học Việt Nam Từ khóa: Hành vi quản lý tài cá nhân, kiến thức tài chính, thái độ tài chính, hạnh phúc tài chính, xã hội hóa tài chính, Covid-19 AUTHOR’S DECLARATION Fullname: Bùi Nguyên Thiên Phúc Student class: HQ5 - GE02, faculty of Banking and Finance, Ho Chi Minh University of Banking Student code: 030805170130 I declare that this thesis entitled: “Factors affecting personal financial management behavior: Evidence from Vietnam”, is entirely original with no prior publication The information presented on this subject is accurate and original The data in the tables that are used for analysis, commentary, and review is gathered from many sources listed in the reference section I assume completely responsibility for the information in my dissertation if any fraud is discovered Ho Chi Minh City, November 2022 Bùi Nguyên Thiên Phúc ACKNOWLEDGEMENT Firstly, I want to start by expressing my gratitude to my suppervisor, PhD Nguyễn Thị Mỹ Hạnh Thank you for always supporting me whenever I need your help and for all the knowledge and sharing you have taught me during my university journey Additionally, I would like to express my profound gratitude to the Ho Chi Minh University of Banking professors, who use their expertise and enthusiasm to teach us priceless information Given the short amount of time available for the execution of the course, as well as the limited expertise and knowledge, there will unavoidably be flaws I would appreciate any insightful feedback from teachers Last but not least, I would like to send my best wishes to the Ho Chi Minh University of Banking's lecturers for continued good health and perseverance in carrying out their grand goal of educating future generations TABLE OF CONTENTS LIST OF FIGURES vii LIST OF TABLES viii CHAPTER INTRODUCTION 1.1 Rationale of the study .1 1.2 Research objectives 1.3 Research questions .3 1.4 Scope of the study 1.5 Contribution of the study 1.6 Research method 1.7 Structure of the study CONCLUSIONS OF CHAPTER .5 CHAPTER LITERATURE REVIEW 2.1 Theoretical framework .6 2.1.1 Personal financial management behavior 2.1.2 Factors affecting personal financial management behavior 2.2 Empirical review 16 2.2.1 Domestic studies .16 2.2.2 Foreign studies 16 CONCLUSIONS OF CHAPTER .18 CHAPTER RESEARCHMETHODS ANDDATA .19 3.1 Research model and researchhypotheses 19 3.2 Research data 19 3.3 Research methods 20 3.3.1 Cronbach's Alpha coefficient 20 3.3.2 Exploratory Factor Analysis (EFA) 21 3.3.3 Pearson correlation 23 3.3.4 OLS linear regression model 24 CONCLUSIONS OF CHAPTER .27 CHAPTER RESEARCH RESULTS ANDDISCUSSION 28 4.1 Descriptive statistics 28 4.2 Checking the reliability of the scale 31 4.3 Exploratory factor analysis 38 4.3.1 Independent variables .38 4.3.2 Dependent variable 45 4.4 Correlation analysis 46 4.5 Regression model .48 CONCLUSIONS OF CHAPTER .55 CHAPTER CONCLUSIONS AND RECOMMENDATIONS .56 5.1 Conclusions 56 5.2 Recommendations 57 5.3 Limitations and further researchdirections 58 CONCLUSIONS OF CHAPTER .59 REFERENCES .60 LIST OF FIGURES Figure 1.1 Covid-19 managing finances Figure 2.1 The four factors of financial well-being .11 Figure 2.2 What influences financial well-being 12 Figure 3.1 Research models 19 Figure 3.2 The scatter plot shows the relationship between the independent and dependent variables 26 Figure 4.1 Age groups of survey participants 28 Figure 4.2 Marital status of survey participants 29 Figure 4.3 Histogram of residual values 52 Figure 4.4 Normal P-P Plot of Regression Standardized Residual .53 Figure 4.5 Scatter Plot 54 LIST OF TABLES Table 4.1 Residence of survey participants residence 29 Table 4.2 Education level of surveyor's father .30 Table 4.3 Education level of surveyor's mother 30 Table 4.4 Reliability Statistics – B (I) 31 Table 4.5 Item – Total Statistics – B (I) .31 Table 4.6 Reliability Statistics – B (II) 32 Table 4.7 Item – Total Statistics – B (II) .32 Table 4.8 Reliability Statistics – C (I) 32 Table 4.9 Item – Total Statistics – C (I) .33 Table 4.10 Reliability Statistics – C (II) 33 Table 4.11 Item – Total Statistics – C (II) 33 Table 4.12 Reliability Statistics – D (I) .34 Table 4.13 Item – Total Statistics – D (I) 34 Table 4.14 Reliability Statistics – D (II) 34 Table 4.15 Item – Total Statistics – D (II) 34 Table 4.16 Reliability Statistics - E .35 Table 4.17 Item – Total Statistics - E 35 Table 4.18 Reliability Statistics – F (I) 36 Table 4.19 Item – Total Statistics – F (I) .36 Table 4.20 Reliability Statistics – F (II) 36 Table 4.21 Item – Total Statistics – F (II) 37 Table 4.22 Reliability Statistics - G .37 Table 4.23 Item – Total Statistics - G 38 Table 4.24 Checking the reliability of the scale by Cronbach's Alpha coefficient38 Table 4.25 KMO and Bartlett test results (I) 39 Table 4.26 Total Variance Explained (I) .39 Table 4.27 Results of rotated component matrix (I) 40 Table 4.28 KMO and Bartlett test results (II) 41 Table 4.29 Total Variance Explained (II) 42 Table 4.30 Results of rotated component matrix (II) 43 Table 4.31 Names of factors after EFA analysis 44 Table 4.32 KMO and Bartlett test results 45 Table 4.33 Total Variance Explained 45 Table 4.34 Component Matrixa .46 Table 4.35 Correlations 47 Table 4.36 Model Summary 48 Table 4.37 ANOVA 49 Table 4.38 Coefficients 50