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JOURNAL OF INTERNATIONAL STUDIES


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ISSN: 2306-3483 (Online), 2071-8330 (Print)



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

Vol. 10, No 2, 2017

 

Thi Anh Nhu Nguyen

 

Tomas Bata University in Zlin,
Zlin, Czech Republic
Email: anhnhu80@gmail.com

 

 

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

 

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

 

 

 

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.

 

Received: October, 2016

1st Revision: March, 2017

Accepted: May, 2017

 

DOI: 10.14254/2071-8330.2017/10-2/19

 

JEL Classification: D01, D12, D14

Keywords: financial literacy, actual financial knowledge, perceived financial knowledge, saving behaviour