Building a Comprehensive Model for Measuring and Analyzing Financial Literacy of Vietnamese Students: An Sem Approach

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Objective: This study aims to build a comprehensive model to measure and synthesize Vietnamese students' Financial Literacy. Theoretical Framework: This paper adopted the OECD (2018) framework to measure financial literacy. The theory of planned behavior (Ajzen, 1991) provided a solid theoretical background for the study. We constructed the questionnaire based on the studies of Lusardi and Mitchell (2011) and Potrich et al. (2016). Method: We conducted a hybrid survey on a sample of 4,146 students in Vietnam and applied Structural Equation Modelling (SEM) to examine the interrelationships among three pillars of financial literacy. Results and Discussion: Financial Knowledge significantly impacts Financial Attitude and Behavior. Moreover, Basic Financial Knowledge is critical to Financial Attitude and Behavior. Students with higher basic knowledge scores tend to have good financial behavior practices. Young people are risk-averse and likely to control their spending and expenses tightly. Research Implications: This study is relevant to SDGs 4, 5, and 10. They help policymakers design and implement appropriate finance educational programs for Vietnamese youths to facilitate good practices in personal financial management and improve public awareness of its significance. The results provide a practical framework for related stakeholders to develop appropriate solutions for personal finance. Originality/Value: This study contributes to the literature by building a comprehensive model with an SEM approach to measure and examine the nature of Vietnamese students' financial literacy. Our study validates the theoretical framework for financial literacy in Vietnam with an inclusive sample. We adjusted the questionnaire to measure basic and advanced knowledge and clarified financial attitudes and behavior. Our study provides a basis for making a curriculum to educate students about financial management and behavior toward financial health and well-being, which contributes significantly to SDG4, 5, and 10.