Factors affecting personal finance management behavior and financial satisfaction in Vietnam

• Published in: Journal of International Economics and Management 2024-11, Vol.24 (3), p.97-118
• Main Authors: Tran, Thi Minh Tram, Schmitt, André
• Format: Article
• Language: English
• ISSN: 2615-9856; 2615-9856
• DOI: 10.38203/jiem.024.3.0096

This study examines financial socialization, financial knowledge, and financial attitudes in their relationships with financial behavior and financial satisfaction in personal finance management in Vietnam. Partial least square structural equation modeling was employed to analyze data collected from 294 respondents. The results show that increased interaction and communication with family members, media, peers, and the workplace in terms of financial matters lead to higher levels of financial knowledge. Moreover, greater financial knowledge is associated with a higher likelihood of engaging in recommended financial behaviors. In turn, engaging in recommended financial behaviors enhances financial satisfaction, reflecting a greater sense of contentment with financial status. Thus, financial socialization should be focused on as an important channel besides formal financial education. This study increases understanding of the determinants of personal finance management behaviors and financial satisfaction in Vietnam. The results are impactful not only for individuals and households but also for policymakers and educators.