The Determinants of Financial Literacy in the Southeast of Vietnam

This study explores how demographic and socioeconomic characteristics are linked with the financial literacy of individuals in the southeast of Vietnam.In this study, financial literacy is estimated by assessing financial knowledge, financial behavior, and financial attitude.The utilized method involves a sample comprising 527 individuals.The ordinary least squares (OLS) and the generalized structural equation model in logit (GSEM) regressions were applied to analyze the data and provide an explanation of the relationship among demographics, socioeconomic characteristics, and three facets of financial literacy.The results show that education levels and the formal sector have a positive relationship with both financial knowledge and financial attitude.Specifically, the findings indicate that males have a higher level of financial knowledge than females, whereas females have better financial behavior and attitude.Age has a positive and statistically significant relationship with financial attitude but no statistically significant relationship with financial behavior.Also, we cannot detect any correlation between young and old people with financial knowledge.Individuals in midlife have greater financial knowledge than younger generations.Accordingly, it is highly recommended that women, the young, and the elderly all are singled out because of their demographics may benefit most from increased financial literacy.In addition, governments should focus on strengthening and educating people about financial literacy, especially those who are thought to be less financially literate.