Parental roles, financial literacy and budgeting behaviour: a survey during the COVID-19 pandemic

Abstract

PurposeThis study aims to provide evidence on the importance of parental financial heads in the family in promoting students' financial literacy levels and budgeting habits.Design/methodology/approachUsing survey data on 730 college students in Vietnam, this study investigated the relationship between parental financial heads, students' financial literacy and budgeting habits. Multiple regression and logit function are the primary approaches in the study.FindingsThis study found a positive association between parental head roles and students' financial literacy and budgeting habits after controlling for demographics. Students whose parents are primarily responsible for financial decisions in the family perform higher in financial literacy and make a budget more frequently. The results are robust to alternative approaches.Practical implicationsThis study’s results help parents, especially mothers who are often more vulnerable in the family, better understand the important role of being the financial deciders in the family and how this can increase their children's financial literacy and help their children manage money more effectively.Originality/valueThis is the first study to address the importance of parents' head roles in enhancing students' financial literacy and budgeting behaviour.