This research examines the factors affecting the financial literacy of Vietnamese adults. Using a sample of 266 observations of adults in two big cities in Vietnam (Hanoi and Vinh in Nghe An Province), the author evaluates the literacy level of adults in these urban areas. The financial literacy of the interviewed people is low. | VNU Journal of Science: Economics and Business, Vol. 33, No. 2 (2017) 59-73 Factors Affecting Financial Literacy of Vietnamese Adults: A Case Study for Hanoi and Nghe An Nguyen Dang Tue* School of Economics and Management, Hanoi University of Science and Technology, No. 1, Dai Co Viet Road, Hai Ba Trung Dist., Hanoi, Vietnam Received 8 August 2016 Revised 19 April 2017, Accepted 26 June 2017 Abstract: This research examines the factors affecting the financial literacy of Vietnamese adults. Using a sample of 266 observations of adults in two big cities in Vietnam (Hanoi and Vinh in Nghe An Province), the author evaluates the literacy level of adults in these urban areas. The financial literacy of the interviewed people is low. The multiple regression results show that lower financial literacy levels associate with higher age and married status and higher financial literacy levels associate with higher education, more family members, the person making financial decisions and the person attending a useful financial course. This research also explores the association between financial literacy and financial behaviors of individuals employing logistic models. It is found that higher financial literacy associates with less probability of overspending and higher probability of saving money and careful spending. Higher financial literacy is also found to associate with higher probability of opening a savings account and making various investments. Keywords: Financial literacy, financial behavior, Vietnamese adults. 1. Introduction financial wellbeing [1]. Financial literacy helps people make effective use of financial products and services and plan for their short-term and long-term financial goals. For example, the study of Klapper and Panos (2011) shows that better financial literacy is positively related to retirement planning [2] while the study of Beckmann (2013) shows that there is a positive association between financial literacy and better saving and .
