Individual demographic characteristics that linkaged with Financial Fragility, Financial Attitude and Behavior and Financial Well-being.... Abstract 300 words or less This research aims
INTRODUCTION
Background of the study
The global financial crisis in 2008 and the latest, COVID – 19, have emphasized that Financial Fragility is a vital factor that affects the Financial Well-being of individuals and the whole economy as well (Lusardi et al., 2011) The COVID - 19 pandemic has taken a heavy toll on Vietnam’s economy and society, even though Vietnam overcame the economic challenges better than most countries Beginning 2022 with the challenges in recovering the economy to the pre-COVID level, the business in every sector has to be more innovative and competitive than ever Hence, it leads to layoffs and unemployment The unemployment rate in Vietnam is 2.73% in the second quarter of
2020, which is the highest from 2011 to 2020 A survey conducted by Vietnam’s Chamber of Commerce and Industry (VCCI) has illustrated that 76% of businesses had decreased their personnel in different ways: different types of working form, flexible work hours, or layoffs Besides unemployment, Vietnamese laborers also have to deal with a decrease in their income, which severely impacts the standard of living quality According to Tuoi Tre News (2020), in the fourth quarter of 2020, the average salary of Vietnamese workers was 5.95 million dong, which is even lower than the same period of 2021 The government has implemented various policies to enhance economic growth, but there are still has many long-term risks like unemployment and financial failure
The situation of Vietnam, as previously said is a risky circumstance that many economies have to face, especially in developing countries The situation of unemployment rate rises and income levels decreases lead to a notice in Financial Fragility Financial Fragility refers to a person’s ability to cover an unexpected expense in the event of uncertainty (Lusardi et al.,2011) Financial Fragility was first introduced by (Lusardi et al., 2011) right after the financial crisis in 2008 to understand one’s ability to cope with shocks and fundamental factors contributing to financial risk and instability This Financial Fragility measurement has been used in many previous studies and it has become an approved measure (Demertzis et al., 2020; Lusardi et al., 2011) Both objective and subjective measure has been focused on in existing empirical study, objective measure often gauges the Financial Fragility level or debt levels (Holló & Papp, 2007; Brown & Taylor, 2008; Jappelli et al., 2008; Anderloni & Vandone, 2011; Ampudia et al., 2016; Johansson & Persson, 2006; Bankowska et al., 2017, Enzinger et al., 2022) and subjective measure typically indicate an individual’s financial fragile depend on the ability to cope with unexpected expenses or income shocks (Lusardi et
12 al (2011), Anderloni et al (2012), Brunetti et al (2012), Rõõm and Meriküll (2017), and Halser and Lusardi (2019) These studies have illustrated important factors that affected to Financial Fragility: demographics like educational level, income and assets level, socioeconomics factors namely financial services (Skiba & Tobacman, 2009), debt levels (Jappelli et al., 2008; Albacete & Fessler, 2010; Ampudia et al., 2016), institutional factors, income and unpredictability (Morduch and Schneider, 2017)
However, the amount of study of Financial Fragility in Vietnam is still poor due to the lack of comprehensive and trustworthy data on research indicators and Financial Fragility may not be perceived as a controversial issue for study There were some studies about Financial Fragility in Vietnam by (Doan et al 2020) and (Le et al 2009) Due to the lack of research on the Financial Fragility of individuals and Generation Z in particular, there is still more work to be done in Vietnam to increase knowledge about Financial Fragility, Financial Well-being, and Financial Literacy This study is a new approach to Financial Fragility with an aim to provide a broader point of view of Generation Z’s Financial Fragility, Financial Well-being and an examination of how Financial Fragility influences Financial Well-being.
Research Objectives and Research Questions
The objective of the study is to gain insights into how Financial Fragility and financial attitude and behavior affect the Financial Well-being in Vietnam Additionally, the study aims to identify the key factors that influence this relationship The goal is to provide research-based solutions to the issues that policymakers encounter in this regard To achieve these objectives, the study addresses the following research questions:
● Whether Financial Fragility is a key determinant of Financial Well-being?
● How do the levels of Financial Fragility, Financial Well-being influence GenZ university students in Vietnam?
● What actions can be proposed in Vietnam to formulate a new generation of financially educated citizens?
Research Methods
Our research process comprises four main stages First, we established a survey questionnaire, including 44 key questions to collect data on Financial Fragility, Financial Well-being, Financial Literacy, Financial Attitute and Behaviour and related characteristics The standardized survey tool allows for accurate comparisons of key
We collected data from 396 participants using a questionnaire (Appendix A) and convenience sampling methods (Stage 2) After cleaning the dataset, we obtained 337 valid responses and conducted descriptive statistics to summarize variable distributions (Stage 3) We calculated scores for Financial Fragility (FF), Financial Well-being (FW), Financial Literacy (FL), and Financial Attitudes and Behaviors (FAB) and tested correlations Finally, we evaluated the model using SPSS software (Stage 4), identifying and analyzing data through Cronbach's Alpha, EFA, CFA, and SEM tests We used SPSS to test the relationships between demographics and financial well-being, financial fragility, and financial attitudes and behaviors, considering factors such as respondents' demographics, parents' education, and income changes.
Research Findings
This study has unveiled several groundbreaking insights regarding interplay among Financial Well-being (FW), Financial Fragility (FF), and Financial Attitudes and Behaviours (FAB) among university students genZ in Vietnam It has been determined that Financial Attitudes and Behaviour significantly influences Financial Fragility The model shows that the higher level of attitudes and behaviours lead to the lower level of fragility’s finance Additionally, Financial Fragility is found to negative affect Financial Well-being, suggesting that lower precarious state can enhance to the the state of having a healthy financial life and the security of being prepared for unexpected financial emergencies Beside, the table of Financial Literacy indicates that overall Financial Literacy remains weak The case of Viet Nam is Asian Development Bank Institute’s study (ADBI) in 2017 also led to conclusion Vietnam’s total score of Financial Literacy (12.0) which is low ranking amongst 30 studied countries This further strengthens the results we have researched
The study also highlights the vital role of demographic factors Firstly, Our study indicate that women generally show higher levels in FF scores compared to men We also explain that consumers who are financially vulnerable tend to have lower monthly income and reduction of living
Structure Of The Study
This study is divided into five chapters The initial chapter introduces the study Chapter 2 establishes the theoretical underpinnings and reviews relevant literature, presenting hypotheses and identifying research gaps Chapter 3 outlines the research methodology and data collection techniques Chapter 4 analyzes and interprets the data, presenting the study's findings Finally, Chapter 5 provides conclusions, discusses study limitations, and suggests future research directions.
THEORETICAL BACKGROUND AND LITERATURE REVIEW
Financial Well-being
Financial Well-being is known as many different names: financial wellness, confidence or resilience, in the previous study, there are cases which Financial Well- being, financial satisfaction, financial wellness are used as synonym (Gutter and Copur 2011; Joo and Grable 2004) But simply, Financial Well-being is a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and is able to make choices that allow them to enjoy life (CFPB 2017)
Financial Well-being is the perception of being able to sustain current and anticipated desired living standards and financial freedom by (Brüggen et al.2017)
The community of scientists often defines Financial Well-being as a concept has a subjective and an objective side Financial subjective is usually split into side: financial anxious about the contemporary financial challenges and secure about future financial statement (Lind et al., 2020; Netemeyer, Warmath, Fernandes, & Lynch, 2017) About financial objective dimension, Financial Well-being can reflect how a person can make the use of their current financial situation while being affected by uncontrolled factors (Consumer Financial Protection Bureau, 2015)
According to (Predergast et al 2018), Financial Well-being is defined as a feeling of financial security both in the present and in the future Financial Well-being is the condition in which a person is able to meet the needs of life, feel secure in the future, enjoy life in the present, and be able to cope with unexpected financial demands in the future Financial Well-being reflects the financial condition where an individual or family has enough resources to live a comfortable life Financial Well-being means being financially healthy, happy and worry-free (Brüggen et al., 2017; Mahendru, 2020; Philippas & Avdoulas, 2020)
2.1.2 Outcomes of Financial Well-being
Financial Well-being is the initial aim for households and individuals since it can significantly affect one’s life satisfaction Financial stress often takes a heavy toll on mental health and physical health because it drags worries about income, debt, employment, which lead to poor job performance The economic impact of COVID –
19 has a knock – down effect on individuals’ health and intensify worldwide problem
So as to help people achieving Financial Well-being, a number of studies have been carried out The first problem then becomes defining what Financial Well-being is in order to help people achieve it (CFPB, 2015)
Achieving Financial Well-being offers many advantages for individuals, from saving to abolishing credit card debts A healthy finance community is also beneficial for the economy, businesses and individuals Achieving Financial Well-being will help people have an easier life and live a richer one (Cherney et al., 2019) Financial Well- being can be achieved by saving, avoiding financial obligations, making wise decisions for investments and plans
Financial Well-being is understandable by everybody who wants to get better at handling their finances consciously (Kempson et al., 2017) When a person aware of their financial situation and want to deal with it, they will manage to fulfill both their wants and needs For instance when it comes to saving money, which is crucial for obtaining Financial Well-being, making a plan based on their budget will helps them avoiding overspending and know what to do with their money
Financial well-being involves meeting financial needs within a budget, enabling individuals to manage their finances effectively and enhance their quality of life (Comerton‐ Forde et al., 2022) Financial perspectives vary, with some viewing money as an asset, while others prioritize spending on personal needs and loved ones Prudent financial management entails planning for future expenses, scheduling payments, and adhering to a budget.
According to (Lusardi 2023), in recent years, Financial Well-being has received significant attention, more and more people has exposed to financial knowledge and become more financial literate due to the growth of society It is predicted that financial management will become a main factor for personal growth in today’s world economy, emphasized the neccesary of this topic, particularly the young There is a big gap between people who are financially literate and who not
Financial well-being is crucial for overall well-being and can be achieved regardless of income level Individuals with financial well-being can meet current and future financial obligations, secure their financial future, and make informed decisions that foster financial independence Conversely, financial stress remains a significant burden for many individuals, arising from the inability to meet financial obligations or concerns about financial security.
17 unsure of his or her finances, suffer from worrying about future, which will directly affect one’s life
Regardless of the growth of economic and the widespread of financial knowledge, a proportion of Vietnamese people still unaware of the importance of Financial Well-being (Sang, 2021) Previous research by (CFPB 2021) has showns that Financial Literacy will appear as a trend to foster Financial Well-being And as a result of market trend, Vietnamese households and individuals are looking forward to impoving their financial stability as they has become more financially literate Financial Well-being has risen up as a hot topic to discuss these days due to the impact of Vietnam’ s economic growth
2.1.3 Financial Well-being in the context of Vietnam
The study about Financial Well-being by (Nguyen 2019) has increased the focus and brought a broader view on Financial Well-being as it plays a crucial role in capturing an individual’s ability to have good financial management, secure against financial emergency and make informed financial decisions The research explores fundamental determinants of Financial Well-being such as income, level of education, or employment status Besides, a study by Dr Nguyen Minh Sang (2021) has illustrated that financial attitudes and behavior, financial knowledge, financial self-efficacy, and financial skils all have a positive impact on Financial Well-being of Vietnamese students But overall, Financial Well-being is a relatively new topic of study in Vietnam Therefore, there is are many works to be done to promote Financial Well-being in Vitenam so that the growth of Vietnam economy can be enhanced.
Financial Fragility
In a financial system, Financial Fragility plays a crucial role no less than others factors since its association with national economic and in formulating economic policies Financial crisis is inevitable if Financial Fragility is not controlled and reach to a certain state, in the 2008 financial crisis, the incapable of paying loans and the falling of house prices has led to severe consequences For this reason, a number of studies has been done to focused on the measurements of Financial Fragility, both objective and subjective
Financial Fragility reflects a lack of resources to cope with a potential, unexpected expense (Brunetti et al 2012; Lusardi et al 2011; Worthington 2003)
So as to measure Financial Fragility, (Lusardi, Schneider, Tufano 2011) used a metric method and surveyed about the capacity to come up with $2,000 in 30 days They have shown a notable outcome that is about half of Americans stated that they absolutely can not deal with an income shock or expected expenditure Financial Fragility was not only be witnessed in the low-income group, which is obviously understandable, but also could be seen in a considerable proportion of middle-income group
Related to this study (Vandone, Bacchiocchi, and Anderloni 2011) have also asked Italians their ability to immediately to cope with $700 unexpected expense Besides that, familiar measurements were also applied on different countries and regions: Estonia (Rõõm and Meriküll, 2017), the Euro area (Ampudia, Vlokhoven, and Żochowski, 2016), Australia (Worthington, 2003)
On the other hand, there were some arguments that existing measurements were lack of foresight, did not evaluate long-term financial stability and only focus on the ability to fall into financial obligation and economic shocks So other reports have been proposed to investigate the cause of financial distress: the alternative of financial services (Skiba and Tobacman, 2009; Brian T Melzer, 2011); level of debt (Christelis, et al., 2009; Jappelli, Pagano, and di Maggio, 2013) and the factors of Financial Fragility (Jappelli, Pagano, and di Maggio 2013)
Since the data of Financial Fragility is insufficient, there are limited research about Financial Fragility, particularly in Vietnam The study by (Nguyen, 2019); Tran,
Research has examined the relationship between financial inclusion and financial fragility, as well as the factors influencing financial fragility among Vietnamese households (2020) Tran (2020) specifically explored the factors affecting households' financial vulnerability to shocks in Da Nang City These studies provide valuable insights into the concept of financial fragility in Vietnam, despite not directly focusing on it.
Financial Literacy
Financial Literacy was defined by (Huston 2010) as an individual's ability to comprehend and utilize information related to personal finance (Jonubi, Abad 2013), (Lusardi, Mitchell 2014) later studied on it and describing a more accurate definition of Financial Literacy as a ability to understand financial concepts in order to make informed decisions regarding saving, investing, borrowing, and managing money It encompasses knowledge about basic financial principles, such as interest rates, inflation, risk, and diversification, as well as practical skills related to budgeting, debt management, and retirement planning The OECD’s International Gateway for Financial Education has established a globally definition of Financial Literacy
Financial literacy encompasses awareness, knowledge, skills, attitudes, and behaviors that empower individuals to make informed financial decisions and attain financial well-being This includes understanding financial concepts, managing budgets, planning for the future, and making responsible investment choices By developing these capabilities, individuals can effectively navigate their financial lives and achieve their financial goals.
(Baker and Ricciardi 2014) consent that Financial Literacy includes three key factors: financial knowledge, financial attitude and financial behavior Financial knowledge involves understanding financial terms and the operations of financial systems, which will form the foundation for Financial Attitude and Behavior Financial attitude reflects individual’s point of view on the financial circumstances like reactions to economic changes and law regulation, and financial behavior represent how one responds to external economic changes
Financial Literacy has also been studied in Vietnam, such as (Nguyen 2017) and (Do Thu Huong 2019) These studies have investigated the Financial Literacy level of Vietnamese in different areas like rural of Northern Vietnam and in the Mekong Delta is relatively low Besides, it was revealed that demographics factors significantly affect Financial Literacy and enhancing Financial Literacy can lead to better Financial Well- being (Tran et al., 2019; Nguyen, 2017)
Financial Attitude and Financial Behavior
Financial Attitude can be understood as a perception, beliefs and state of mind about finance and money It involves their opinions, judgements and their characteristics of financial towards financial matters for example when the way a government changes the economic landscape Every aspect of human life, without the exception of the financial aspect, will require a financial attitude (Garber et al., 2017) Financial attitude provides a financial mindset that will help in making decision and defining attitudes and behaviors in financial difficulties, such as planning personal spending or money management A more positive financial attitude result in a better financial management, which means individuals who have more positive attitude towards financial will manage their finance more wiser according to (Sahi et al.2019) Similarly, those with a positive attitude towards finance tend to be more careful in spending money Previous empirical study: (Mutang 2017); (Abdullah 2019); (Sumani and Roziq 2020) support that financial attitude has an impact on Financial Well-being The ability to have a decent financial control can be created by a good financial attitude, good financial management based on plan will facilitate financial freedom to make decisions that will enhance living condition and satisfy living standards
On the contrary, a study by (Shim 2009) has shown that financial attitude not only has positive effect on Financial Well-being but also has a negative effect on some factors of Financial Well-being such as copying strategy But in conclusion, (Setiyani
& Solichatun 2019) has proved that financial attitude has positive impact on Financial Well-being The relationship between financial attitude and Financial Well-being has been shown in the study by (P.Handayati 2023), financial attitude will directly affect financial behavior, and affect Financial Well-being in turn
Financial attitude refers to an individual's outlook on the prevailing financial circumstances in their environment For instance, it encompasses how a government evaluates shifts in the economic landscape This attitude is shaped by the subject's level of financial knowledge, which forms the basis for their financial conduct and perceptions of their economic situation
Many students has to deal with financial challenges when they go to college and university namely paying electric bills, water bills, saving, manage spending and the first time using credits in their live Financial behavior refers to how a person manage their finance, made up financial decisions and cope with financial challenges Ricciardi and (Simon 2000) explained that the key point if financial behavior is to clarify the point of view of individuals on finance and investment
Analysts have used the systems approach to investigate the role of financial behavior in Financial Well-being (Fitzsimmons and Leach 1994; Hira et al 1992) (Joo and Grable 2004) found that financial behavior influences Financial Well-being both directly and indirectly such as fully paying bills for each month, saving plan, budgeting
It is common finding that financial behavior are correlated with Financial Well-being Therefore, it has been shown that positive financial behaviors can improve Financial Well-being (Shim et al 2009; Xiao et al 2006; Xiao et al 2009) In addition, university and college students’ satisfaction with their finance can be enhanced by positive financial behaviors (Xiao et al 2009), and positive financial behaviors may result in a decrease in financial stress as well (Hayhoe et al 2000)
2.4.3 Financial Attitude and Behavior in the context of Vietnam
Financial Attitude and Behavior, distinct from Financial Literacy, are crucial aspects of financial systems Despite their significance, research on Financial Attitude and Behavior in Vietnam remains limited Notably, Vu (2020) explored the financial attitudes and behaviors of university students in Vietnam and identified their determinants This study contributes to the understanding of financial decision-making among young Vietnamese individuals and highlights the need for further research in this area.
21 relation between financial attitudes and financial behaviors involves saving, speding and borrowing behaviors
(Bui, 2019) is also analyze the financial attitudes and behaviors of undergraduate students in Vietnam Similarly, this research explore how financial attitudes affect financial behaviors like saving, spending and investing but the different is that this study determines the distinct in financial attitudes and bahaviors.
The Impact of Financial Fragility on Financial Well-being
There have been a number of papers examine the impact of Financial Fragility on Financial Well-being, both internationally and domestically It is indicated that Financial Fragility has an negative impact on Financial Well-being The study of (Elona Dushku 2023) on Financial Fragility shows that any shock may have a negative effect on Financial Well-being Similarly, (Tachibanaki 2019) examines the detrimental effects of Financial Fragility on one’s Financial Well-being and quality of life.
Financial Fragility influences consumer well-being (Bialowol-ski 2021), (Clark
2021), (Hasler 2018) It is reported that consumers who financial fragiled and suffering in short term are more likely to be economic uncertainties, which will directly affects individual’s Financial Well-being In according to (Anderloni 2012), Financial Fragility equivalent to Financial Well-being These studies highlight the negative effects of financial fragility on Financial Well-being
In Vietnam, Nguyen and Pham (2009) examined the relation between Financial Literacy, Financial Well-being, and Financial Well-being among Vietnam households
A study by Tran (2020) analyzed various factors that influence both financial fragility and financial well-being While these studies explore the connections between these two concepts, further research and data are essential to fully understand their impact, particularly among specific populations such as individuals and university students.
Research gap and hypothesis development
To date, only a minimal number of studies have specifically addressed Financial Fragility within the Vietnamese context The article further introduces a novel angle by focusing on Generation Z students in Vietnam, a aspect that has not been the subject of prior research in this field
This study significantly advances the body of literature in a number of ways First, it uses the OECD/INFE questionnaire (2022), an updated and more thorough tool, to gauge levels of Financial Well-being, Finanancial Literacy Furthermore, given that
22 the concept of "Financial Fragility" is relatively new, there is a limited pool of research concerning appropriate evaluation methodologies This enables the addition of additional features and questions, resulting in a more thorough understanding of Financial Fragility, which can guide policymakers and financial educators indevising timely strategies to deal with post-crisis complications Second, the study emphasizes the idea of Financial Fragility, which has not received enough attention in other studies on Financial Literacy in Vietnam Third, this study fills a research vacuum on Financial Fragility, Financial Well-being, Financial Literacy, financial attitude and behaviour in post-COVID-19 epidemic Vietnam It offers insightful information into the current financial environment by examining the influence of these components in the post- pandemic context
H1: Financial Attitude and Behavior has a positive influence on Financial Literacy
H2: Financial Literacy has a negative influence Financial Fragility
H3: Financial Attitude and Behavior has a positive influence on Financial Fragility
H4: Financial Literacy has a positive influence on Financial Well-being
H5: Financial Attitude and Behavior has a positive influence on Financial Well- being
H6: Financial Fragility has a negative influence Financial Well-being
H7: Individual demographic characteristics that linkaged with Financial Fragility
H8: Individual demographic characteristics that linkaged with Financial Well- being
Hypothesis 7 and 8 can be divided into:
1 Women have a better Finacial well-being than Man
2 Students whose monthly income is lower have higher Financial Fragility scores than students whose monthly income is higher
3 Student whose monthly income is lower have higher Financial Well-bing scores than students whose monthly income is highe
4 Student have reduction of living have higher Financial Fragility scores than students have a stablility in living
Conceptual Framework
Table 1 Conceptual framework This figure presents thestudy’s conceptual framework
Drawing upon the conceptual frameworks of Baker et al (2023) and Shankar et al (2022), this study aims to elucidate the connections between Financial Fragility (FF), Financial Well-being (FW), Financial Attitude & Behaviour (FAB), Financial Literacy (FL), and Individual Demographic Characteristics (Financial Demographics-FD) These relationships are integral to understanding the complex interplay of financial outcomes and personal characteristics.
DATA AND METHODOLOGY
Data Collection
Convenience sampling is a probabilistic strategy for selecting a subgroup from a larger population According to (Frey 2018), sampling involves randomly selecting individuals from a population based on their measured characteristics at each stage
To collect information, a self-administered online survey was used The subjects of this thesis are Vietnamese Generation-Z University students, mainly ranging from 18 to 29 There are two explanations for the aforementioned object choice First and foremost, these individual contribute to the formulation of a new generation of financially educated citizens Secondly, Financial Well-being and the ability to make wise financial decisions depend on having adequate knowledge of finance As a consequence, most people who are financially literate know how to handle their own money so they can accomplish broader financial ambitions To ensure reliability, the survey sample was diverse in terms of age, education level, work experience, and income
The survey approach involves distributing questionnaires directly to each survey object The survey was done under supervision of our mentor, who made a number of suggestions to improve our work Data was collected from January to February, 2024 The questionnaire was precisely translated into Vietnamese to facilitate data collection
We use social networking platforms such as Facebook, Zalo, and Instagram to distribute Google Form questionnaires among our friends We received a total of 396 replies, however only 337 were accepted
The research design and distributed a survey that use a convenience sampling of
396 students from several universities in Viet Nam Students were asked to answer 44 questions in total Furthermore, the survey emphasized five pillars
Pillar 1: Demographics survey which include 3 parts: general information (gender, age, nationality, work experience), parent’s information (father, mother’s education and father, mother’s education) and socieconomic (monthly income, income change and reduction of standard of living)
Pillar 2: Questions to measure Financial Fragility through a 5-level Likert scale with 6 observed items (1 – completely disagree; 2- disagree; 3 – neutral; 4 – agree; 5 – completely agree)
Pillar 3: Financial Well-being measurement questions through a 5-level Likert scale with 10 observed items
Pillar 4: Understanding about Financial Attitudes and Behaviour with 6 items through a 5-level Likert scale
Pillar 5: Applying the newest version of the OECD/INFE 2022 questionnaire about Financial Literacy, which including 11 questions
The scale was built by the author based on actual survey questions about Financial knowledge, attitudes and behaviors of Vietnamese GenZ students The content is developed based on a careful selection of questions that have been used in other research projects globally
3.1.4 The scale of each factor
The scale of Financial Demographics (FD) in research refers to how demographic data is used to analyze and understand financial behavior, fragility, and outcomes among different groups within a population Financial Demographics is a crucial field in both academic and practical finance, encompassing various aspects such as income levels, education, unemployment rates, income change, standard of living and more This measure is built on the research of Nikolaos D.Philipas & Christos Avdoulas
Research concept The scale Code Reference
Work Experience in years FD4
Father’s Unemployment FD7 Mother’s Unemployment FD8
Table 2.The scale of Financial Demographics The scale of Financial Well-being (FW)
Research concept The scale Code Reference
It is quite possible for me to shoulder an unexpectedly large expense
I am securing my financial future FW2 With my current financial situation,
I feel like I can never get what I want
I can enjoy my life because I manage my personal finances well FW4
I am concerned that my savings won't last long FW6
The money on the occasion of filial piety, wedding, birthday will make me fall into financial difficulties during the month
I have money left over at the end of the month FW8
My spending is more than my income FW9
My life is limited by finances FW10
Table 3 The scale of Financial Well-being
The scale of Financial Fragility (FF) were developed by Lusardi, Schneider, and Tufano in their 2011 study to access Financial Fragility, posing a specific question to participants to gauge their financial resilience This approach has since been adopted in subsequent research, where the scale of Financial Fragility is measured using a
27 question similar to the one used by Lusardi and colleagues The responses provide insights into the financial vulnerability of different demographics, helping researchers to classify students as financially fragile if they are unable to meet such unexpected demands without resorting to extreme measures like taking out high-interest loans or selling assets This questions include 10 detailed questions about topic and use 5 Likert- scale to evaluate
Research concept The scale Code Reference
How confident are you that you could come up with 2000 Euro if an unexpected need arose within the next month?
Lusardi, Annamaria and Schneider, Daniel and Tufano, Peter,
Because of my money situation,
I feel I will never have the things
I am behind with my finances FF3
My finances control my life FF4
Whenever I feel in control of my finances, something happens that sets me back
I am unable to enjoy life because
I obsess too much about money FF6
Table 4.The scale of Financial Fragility
The scale of Finacial Attitudes and Behaviour (FAB) The attitudes and behaviour portion of the digital Financial Literacy score is determined by tallying the number of "savvy" responses elicited from statements in QS4 These questions are designed following OECD 2022 and ranges between 1 and 6
Research concept The scale Code Reference
I think that it is safe to shop online using public Wi-Fi networks (e.g., in cafés, airports, shopping malls)
It is important to pay attention to the security of a website before FAB2
(FAB) making a transaction online (e.g https sites, safety logo or certificate)
I trust the financial services provided by online banks and FinTechs (such as)
I believe that financial service providers should use a wide range of non-financial personal data, including from social media, in decisions about granting credit
I am more likely to buy impulsively when I buy online than in person in a shop
It is more likely that I would read the small print of a contract if it is on paper than online
Table 5 The scale of Finacial Attitudes and Behaviour
The scale of Financial Literacy (FL) stems from eleven questions that define the levels of Financial Literacy of OECD 2022 The knowledge score is computed as the number of ten correct responses which are partly objective with testing questions related to calculating inflaction, the value of money, and interests The first of eleven questions was to ask self-reflection of students Our financial knowledge answers can take many forms such as Likert scale, essay and true or false answers to provide the most general and accurate assessment of the financial knowledge of GenZ students in Vietnam.These questions were based on the questions conducted by:
Table 6.The scale of Financial Literacy (FL)
Research concept The scale Code Reference
Could you tell me how you would rate your overall knowledge about financial matters compared with other genZ students in Vietnam?
OECD (2022) Now imagine that the brothers have to wait for one year to get their share of FL2
(FL) the 25.000.000 VND and inflation stays at X% percent In one year’s time will they be able to buy?
You lend 1.000.000 VND to a (friend/acquaintance) one evening and he gives you 1.000.000 VND back the next day How much interest has he paid on this loan?
Imagine that someone puts 5.000.000 VND into a (no fee, tax free) savings account with a guaranteed interest rate of 2% per year They don’t make any further payments into this account and they don’t withdraw any money How much would be in the account at the end of the first year, once the interest payment is made?
And how much would be in the account at the end of five years (add if necessary: remembering there are no fees or tax deductions)? Would it be:
An investment with a high return is likely to be high risk FL6
High inflation means that the cost of living is increasing rapidly FL7
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares
A digital financial contract requires signature of a paper contract to be considered valid
The personal data that I share publicly online may be used to target me with personalised commercial or financial offers
Crypto-currencies have the same legal tender as banknotes and coins FL11
Methodology
To evaluate financial fragility and well-being, this study employed Partial Least Squares-SEM (PLS-SEM) PLS, a prediction-based SEM method, was chosen due to the small sample size and absence of distributional assumptions The study analyzed descriptive statistics, conducted PLS-SEM to assess direct and indirect relationships, and utilized T-Test models to determine correlations between demographic elements and financial concepts Structural equation modeling's ability to combine factor and regression analyses allowed for the identification of factors influencing financial well-being.
The Hair et al (2014) scale is suitable for use with Cronbach's Alpha coefficients between 0.7 and 0.8 (ideal range) or greater than 0.60 (acceptably reliable) Consider the Cronbach's Alpha if Item Deleted column to identify variables that may weaken the scale's reliability Remove variables if the Cronbach's Alpha if Item Deleted value exceeds the Cronbach's Alpha coefficient and the total variable correlation coefficient is below 0.3 This aligns with Nunnally's (1978) recommendations for scale reliability assessment.
According to (Bonett and Wright 2014) Cronbach alpha test criteria: If the measured variable has the correlation coefficient of the total variable Corrected Item - Total Correlation ≥ 0.3, the variable meets the requirements Section Corrected -Total Correlation coefficient shows the correlation between that observed variable with the rest of the variables in the scale, if this observed variable has a tight correlation with the variables in the group, the better Thus, when performing the Cronbach's Alpha reliability test, if the observed variable has a total correlation coefficient less than 0.3, it is necessary to remove that variable and run it again for the second time
Table 7 Meaning of Cronbach's Alpha
No Cronbach's Alpha coefficient value Meaning
1 ±0.01 to ±0.1 The scale has no meaning
2 ±0.2 to ±0.3 The scale has a low significance
3 ±0.4 to ±0.5 The scale is moderately significant
*Author source 3.2.2 Exploratory Factor Analysis (EFA)
EFA is a factor analysis method that helps to evaluate two important values of the scale, namely convergent value and discriminant value The more analytical approach to EFA analyzes the fact that the parties are correlated with each other (reciprocal relationships) In the integration section, the Principal Component Analysis treatment and Varimax rotation were the most commonly used (Hair et al., 2016) The scale is updated when the total error rate is reduced by 50% He compares factor loading as a cost that covers the practical meaning of EFA The fading coefficient is greater than or equal to 0.5, which covers the original CFA
KMO coefficient is the index used to consider the suitability for factor analysis
A large KMO means that factor analysis is appropriate The KMO value distributed from
0 to 1 and this value must reach 0.5 or more is a sufficient condition for factor analysis to be suitable for the research data set (Hair et al., 2016).
CFA is one of the most important features of the SEM network model The CFA allows for the determination of the long-term observations of the large and small groups of people CFA is the follow-up of EFA CFA was used to confirm the univariate, multivariate, convergent and discriminant validity of the scale Includes metrics:
Chi-square (CMIN): The chi-square test of independence determines whether there is an association between the categorical variables (i.e whether the variables are independent or related)
Chi-square adjusted for degrees of freedom (CMIN/df);
TLI_Tucker and Lewis Index Root Mean Square Error Approximation (RMSEA) When testing a model, the factors for a model to be relevant to market data when:
P-value >0.05 GFI, TLI, CFI >=0.9 Chi-square/df 0.05: there is no statistically significant average difference between the two groups of values
DATA ANALYSIS AND DISCUSSION
Descriptive analysis
This dataset provides demographic and socieconomic information and valuable insights for GenZ University Students in Vietnam about Financial Literacy, Finacial Fragility, Financial Attitudes and Behaviours and Financial Well-being Table 8 provide summary statistics regarding the frequencies and proportion of the respondents’ demographic, parent information, socioeconomic and financial behavior characteristics that are tabulated across male and female students for the entire sample Our dataset consists of 65.3% female respondents and 34.7% male respondents
The survey participants were predominantly young adults aged 18-22 (96.1%), with minimal representation from older age groups (3.6% aged 23-28 and 0.3% aged 29) Almost all respondents (99.7%) were Vietnamese, with only one individual (0.3%) identifying as another nationality Regarding work experience, the majority (46.3%) had none, while 43.9% had less than two years Only 9.5% had two to four years of experience, 0.3% had four to six years, and none had over six years of experience.
According to report, their parent’s education level was almost smoothly distributed 35.6% of survey participants about father’s education level has Bachelor degree, followed up by those with an education level in Upper High School, Post- secondary Education, MSc/PhD degree, which stand at 23.1%, 18.7% and 13.4% respectively For their father’s education level, 40.7% reported that their mother has a BSc degree, which is the largest percentage Post-secondary Education and Upper High School also indicated that 21.4% and 18.7% of education level of their mother Of the respondents, 95.5% and 97.3% had mother and father with a job while 4.5% and 27% percentage of mother and father was unemployed
The survey asked university students to report their gross monthly income In our sample, the monthly gross income categories are: 0 – 0.5 Million VNDwith a proportion of 20.8% while only 8% have monthly income between 0.5 Million VND – 1 Million VND; 35.3% have a monthly income from 1 Million VND to 3 Million VND, takes up a highest proportion, 17.8% is the percentage range from 3 Million VND to 5 Million VND, 17.8% of students have income of 5 Million VND – 10 Million VND, and only 5.3% of the participants have monthyly gross income over 10 Million VND We also included a variable labeled “Income Change” and “Reduction of Standard Living” The summary statistics show a huge 70.3% participants answered that they see a decline in
35 their standard of living Also, more than a half of respondents admit that their income change fluctuate around less than 20%
Variable Female Students Male Students Entire sample
Figure 1 reports the descriptive statistics tabulated for response to Financial Literacy questions We have 11 questions in our Financial Literacy questionnaire, with FD1 being a self-assessment question where students evaluate their own understanding, and the remaining 10 questions FD2 – FD11 aimed at assessing students' knowledge
Figure 1 Responses to Financial Literacy questions
Figure 2 The percentage of student’s correct answers
The low proportion of GenZ students (16%) correctly answering all five questions and 19% answering six out of ten questions highlights their limited financial knowledge This is corroborated by the 2024 FIRA survey, which found that only 24% of Gen Z respondents could correctly answer four out of five basic financial literacy questions.
Figure 3 Percentage of student's self - assessment
Figure 3 shows that more than 70% of sample rate themselves as having an average level of financial understanding
Percentage of student's correct answers
Very low Quite low About average Quite high Very high
Comparing the two tables above, we see that Vietnamese students are facing a phenomenon called "Overconfidence" This term describes a widespread tendency among individuals to hold an unwarranted level of confidence in their own knowledge, beliefs, and decision-making abilities We tend to have a deepy rooted overconfidence in our beliefs and judgments." This observation suggests that such overconfidence is not a mere isolated phenomenon but a deep-seated psychological predisposition that can significantly influence behavior and decision-making processes Testa & Italo 2020 indicates that overconfidence bias concerning topics in genetics, evolution, and their intersection is influenced by the socio-educational context at the national level Additionally, gender plays a lesser, yet significant role in shaping this bias This finding highlights the complexity of cognitive biases and suggests they are shaped by a combination of cultural and individual factors.
Structural Equation Modeling (SEM)
When conducting a Cronbach's Alpha analysis for a factor, it is crucial to scrutinize the Cronbach's Alpha coefficient of the group and its individual variables If the group's Cronbach's Alpha falls below 0.6 and no variable contributes positively to the coefficient, it should be disregarded However, if the Cronbach's Alpha exceeds 0.6, its reliability should be further assessed by examining the "Item Deleted" column, which displays the coefficient after removing each variable When an item's deletion results in a higher Cronbach's Alpha and a Corrected Item-Total Correlation value below the original coefficient, the correlation coefficient of the total scale should be evaluated Additionally, variables with item deletion values exceeding 0.3 may be removed to enhance the scale's reliability.
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
In Table 9, it can be clearly seen that the three variables are Financial Fragility, Financial Well-being, Financial Attitudes and Behaviour have Cronbach’s alpha value greater than 0.6, and only Financial Literacy have Cronbach’s alpha is 0.471, lower than 0.6 There are some items that are not reliable, which are FF1, FW1, FAB1 and FAB5, so they are excluded from the model For FL scale, the cronbach’s alpha is moderately significant, so we choose top three highest (FL3, FL4, FL5) and re-test The new results show 0.714 which consider as a full-scale measurement
After testing the reliability of the scales, exploratory factor analysis was conducted The selected factor extraction method is the Principal Axis Factoring method with Promax rotation In EFA analysis, variables with load multiplier above 0.5 will be kept and the total variance extracted must be greater than 50% The KMO (Kaiser-
Meyer - Olkin Measure of Simping Adequacy) index must satisfy the condition
0.5≤KMO≤1 and the Barllett test has sig significance 1, the total variance extracted from the model is 57.030%, larger than the condition (50%), the model is accepted The extracted variables explain 57.030% of the observed variables
FF6 796 FF5 753 FF4 696 FF2 660 FF3 631
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization.
The above table shows variables divided into different groups: FF (FF2, FF3, FF4, FF5, FF6), FAB (FAB2, FAB3, FAB4, FAB6), FL (FL3, FL4, FL5), FW (FW6, FW7, FW8)
Confirmatory Factor Analysis, like Exploratory Factor Analysis, eliminates certain nonconforming items The final outcome is as follows:
FF6 825 FF5 715 FF2 589 FF4 543 FF3 528
Extraction Method: Principal Axis Factoring Rotation Method: Promax with Kaiser
Normalization a Rotation converged in 5 iterations
4.2.4 Structural Model Test Results (SEM)
The model exhibits a good fit to market data, as evidenced by the Chi-square/df being greater than 1.621, the GFI exceeding 0.946, and the CF1 being above 0.954 Furthermore, the RMSEA and TLI coefficients fall within acceptable ranges, indicating that the model meets market data fit criteria.
To be more specific, the normalized regression coefficient of independent seas shows that the impact of Financial Attitude and Behavior on Financial Fragility is
0.383, the largest of all factors, which means a 1 percent increase in Financial Fragility will increase by 38 percent in terms of Financial Attitude and Behavior if other variables are controlled It implies that the alternative hypothesis that should be accepted is this: Financial Attitude and Behavior (FAB) positively influences Financial Fragility (FF)
The impact of financial attitude on financial planning is significant, with a correlation coefficient of -0.384 This indicates that financial well-being is the primary factor influencing financial fragility Accordingly, the alternative hypothesis that financial well-being affects financial fragility should be accepted.
Financial Fragility (FF) negatively influences Financial Well-being (FW).
Individual demographic characteristics that linkaged with Financial Fragility,
4.3.1 Gender and Financial Well-being
Table 15 Group statistics of FF, FW, FAB
Table 16.Independent Samples Test of Gender with FF,FW,FAB
Levene's Test for Equality of
Variances t-test for Equality of Means
The results of independent samples t-tests for all the three financial dimensions against gender are given in Table 16 Levene’s test for equality of variances was first performed, and based on its statistical conclusion, the corresponding t-test assumed equal or unequal variances From Table 16, the t-tests conclude that there is a significant difference between Financial Well-being scores (Sig=0.06>0.05) of male and female students In the Table 15, the mean difference implies that female students (3.79) have statistically higher Financial Well-being scores than males (3.00) However, the other dimensions, including Financial Fragility, Financial Attitude and Behaviour, are not
45 significantly different for the two genders
4.3.2 Financial Fragility and Financial Well-being with the Monthly income
Next, the five model factors were tested for significance across the six monthly income group covered by the study, namely, 0 – 0.5 Million VND, 0.5 Million VND –
1 Million VND, 1 Million VND – 3 Million VND, 3 Million VND – 5 Million VND, 5 Million VND – 10 Million VND, over 10 Million VND
Table 17 Descriptive student’s monthly income with FF, FW, FAB
Table 18 Test of Homogeneity of Variances of Monthly's income with
Test of Homogeneity of Variances
Levene Statistic df1 df2 Sig
Table 19 Robust Tests of Equality of Means of FF, FW, FAB with Monthly
Robust Tests of Equality of Means
Table 20 ANOVA results of FF, FW, FAB with Monthly Income
Sum of Squares df Mean
Table 17,18,19,20 gives the results of a one-way ANOVA to compare the average factor scores across varying levels of a student’s monthly income It is apparent from the p-values in Table 18 that FF (Sig=2.75) has statistically significant at the higher than 5% level of significance test but lower 5% level of significance in Table 20 (0.000) in Table 17, the mean difference implies that both catogory whose lower monthly income from 0 to 1mil VND (3.0895-3.0898) have statistically higher Financial Fragility (FF) scores than 10mil VND monthly income (2.342) This results indicates that student with
47 lower income have easier face to crisis financial and vice versa
On the other hand, in Table 18 that FW (Sig=0.022) has statistically significant at the lower than 5% level of significance test but lower 5% level of significance in Table 20 (0.47) In the table 17, the mean difference implies that both catogory whose lower monthly income from 0 to 5mil VND (2.08-3.5) have statistically lower Financial Fragility (FF) scores than 10mil VND monthly income (2.342) This results indicates that students with lower income have a difficult to feel secure in their financial future and is able to make choice
4.3.3 Financial Well-being has linkage with the Reduction of living
Table 21 Descriptives student’s Reduction of living with FF, FW, FAB
Mean Lower Bound Upper Bound
Table 22 Robust Tests of Equality of Means of FF, FW, FAB with student’s
Test of Homogeneity of Variances
Levene Statistic df1 df2 Sig
Table 23 ANOVA results of FF, FW, FAB with Reduction of living
Sum of Squares df Mean
Table 21, Table 22 and 23 gives the results of a one-way ANOVA to compare the average factor scores across varying levels of a student’s reduction of living It is apparent from the p-values in Table 22 that FF (Sig=0.807) has statistically significant at the higher than 5% level of significance test but lower 5% level of significance in Table 23 (0.000) In the Table 21, the mean difference implies that both catogory who have reduction of living (3.286) have statistically higher Financial Fragility (FF) scores than who have a stablility life (2.77) This results indicates that student with the changing in financial life have easier face to to future outbreaks of financial disorder and vice versa.
Research results
Table 24 Coefficients of results – SEM
With a statistical significance level of 10%, the research results show that the variables have a P-value (*** in Table 24 means P-value of that relationship < 0.001) less than 0.1 as follows:
Regression coefficient of Financial Attitude and Behavior to Financial Fragility 0.383, indicating a positive influence of Financial Attitude and Behavior to Financial Fragility (Xiao & Kumar, 2023) argues that certain financial behaviors can lead to a fragile financial state Thus support hypotheses H3
Financial fragility, defined as having a low capacity to absorb financial shocks, exhibits a negative impact on financial well-being, as indicated by a regression coefficient of -0.384 Research by Liu, Mitchell, and Lusardi (2021) has found that a substantial proportion of individuals in the United States (between 46% and 59%) experience financial fragility, and this fragility has been linked to diminished overall well-being These findings support the hypothesis that financial fragility negatively influences financial well-being.
Interestingly, the researchers discovered that Financial Literacy has no signifcant influence on financial well- being (0.246), contrary to previous research that found Financial Literacy to be important in determining Financial Well-being (Koposko 2013;Rahman et at 2021; Taft et at.2013)
CONCLUSION AND LIMITATION
Conclusion
5.1.1 Summury This study aimed to assess the Financial Fragility and Financial Well-being of Genz student university in Vietnam based on age, gender, parent information, income
We introduced the SEM, compared outcomes with other research globally The study reveals a strong correlation between Financial Fragility, Financial Attitude and Behavior and Financial Well-being
Financial Attitude and Behavior has a positive influence on Financial Literacy Not Supported
Financial Literacy has a negative influence Financial Fragility Not Supported
Financial Attitude and Behavior has a positive influence on Financial
Financial Literacy has a positive influence on Financial Well-being Not Supported
Financial Attitude and Behavior has a positive influence on Financial Well- being
Not Supported (Sabri et al., 2023)
Financial Fragility has a negative influence Financial Well-being Supported
Individual demographic characteristics that linkaged with Financial Fragility Supported
(Nisha Shankar, Smitha Vinod & Rajashree Kamath
Individual demographic characteristics that linkaged with Financial Well-being Supported
(Nisha Shankar, Smitha Vinod & Rajashree Kamath
Conclusion and Recommendations
This study examines Financial Fragility and Financial Well-being among Generation-Z university students: evdence from Vietnam The study constructs comprehensive 4-component: Financial Fragility, Financial Well-being, Financial Attitude and Behavior Our study is the first to use SEM model to examine how Financial Fragility affects the well-being among generationZ university students Moreover, it also assesses the influences of each factor on the others for further understanding to define the relationships between them, using demographic variables
The study found some prominent findings Secondly, Financial Literacy among generationZ in Vietnam university witnessed a dramatical low levels
We investigated fourth research questions using US data Our first research question investigated the con-nection between Financial Fragility and well-being We find that Financial Fragility negatively affects Financial Well-being among the age group from 18-23 of university students in Vietnam The second research question investigates “Are there any variations in the impact of Financial Fragility and financial well- being on GenZ university students in Vietnam based on demographic, socioeconomic and financial attitudes and behavior characteristics?” Our study indicate
52 that women generally show higher levels in FF scores compared to men We alse explose that consumers who are financially vulnerable tend to have lower monthly income and reduction of living
Here are certain specific recommendations for Financial Fragility and Financial Well-being in Vietnam in order to answer for question fourth we investigated above:
1 Financial Education: Strengthen Financial Literacy programs within universities and colleges, focusing on practical financial behavior Courses should cover budgeting, debt management, savings, and investments
2 Parental Engagement: Develop programs that also engage parents, as their influence on financial behavior is significant This could include parent-student workshops or financial planning seminars
3 Behavioral Interventions: Integrate behavioral economics into Financial
Literacy programs to help students develop better spending habits, savings, and financial decision-making processes
4 Self-Efficacy Enhancement: Include training that boosts students' financial self- efficacy, enabling them to feel more confident and competent in managing their financial resources
5 Digital Financial Tools: Encourage the use of financial management apps and tools designed to help students keep track of their spending and saving, ideally those tailored to the Vietnamese market and student life
6 Income-Generating Opportunities: Provide support for university students to engage in part-time work or internships that not only give them practical experience but also an income stream to manage.
Limitations and directions
First, the study's limited sample size focused on the university student in Vietnamese, restricting its broad applicability to other cultural contexts Future research should include cross-country comparisons for a more comprehensive understanding Furthemore, we have limited associated with class of higher and wider student that are study in other fundamental economic university It lead to limited in diversification sample size
Future studies should provide expert advice on how to diversify assets across various asset classes and geographical regions to mitigate risk, as well as look into the effects of cultural factors on individual fragility, well-being and Financial Literacy This data can be used by financial institutions and policymakers to develop inclusive
53 financial education initiatives that are successful and culturally sensitive
11 Reduction of Standard of Living
1 How confident are you that you could come up 4.000.000 VND if an unexpected need arose within the next month?
2 Because of my money situation, I feel I will never have the things I want in life
3 I am behind with my finances
4 I am behind with my finances
5 My finances control my life
6 Whenever I feel in control of my finances, something happens that sets me back
7 I am unable to enjoy life because I obsess too much about money
1 It is quite possible for me to shoulder an unexpectedly large expense
2 I am securing my financial future
3 With my current financial situation, I feel like I can never get what I want
4 I can enjoy my life because I manage my personal finances well
6 I am concerned that my savings won't last long
7 The money on the occasion of filial piety, wedding, birthday will make me fall into financial difficulties during the month
8 I have money left over at the end of the month
9 My spending is more than my income
10 My life is limited by finances
1 I think that it is safe to shop online using public Wi-Fi networks (e.g., in cafés, airports, shopping malls)
2 It is important to pay attention to the security of a website before making a transaction online (e.g https sites, safety logo or certificate)
3 I trust the financial services provided by online banks and FinTechs
1 I believe that financial service providers should use a wide range of non-financial personal data, including from social media, in decisions about granting credit
2 I am more likely to buy impulsively when I buy online than in person in a shop
3 It is more likely that I would read the small print of a contract if it is on paper than online
1 Could you tell me how you would rate your overall knowledge about financial matters compared with other genZ students in Vietnam?
2 Now imagine that the brothers have to wait for one year to get their share of the 25.000.000 VND and inflation stays at X% percent In one year’s time will they be able to buy?
• More with their share of the money than they could today
• Less than they could buy today
• It depends on the types of things that they want to buy
3 You lend 1.000.000 VND to a (friend/acquaintance) one evening and he gives you 1.000.000 VND back the next day How much interest has he paid on this loan?
4 Imagine that someone puts 5.000.000 VND into a (no fee, tax free) savings account with a guaranteed interest rate of 2% per year They don’t make any further payments into this account and they don’t withdraw any money How much would be in the account at the end of the first year, once the interest payment is made?
5 And how much would be in the account at the end of five years (add if necessary: remembering there are no fees or tax deductions)? Would it be:
• Impossible to tell from the information given
6 An investment with a high return is likely to be high risk
7 High inflation means that the cost of living is increasing rapidly
8 It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares
9 A digital financial contract requires signature of a paper contract to be considered valid
10 The personal data that I share publicly online may be used to target me with personalised commercial or financial offers
11 Crypto-currencies have the same legal tender as banknotes and coins
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