How do financial education and literacy impact financial behavior? Empirical evidence of youth in Vietnam

Abstract

This paper evaluates whether financial education and literacy has a strong link to youth’s financial behavior. Universities and courses are easy access to financial knowledge to attend to. However, individuals' levels of financial awareness may differ. Hence, we conduct an analysis on financial literacy and financial behavior on over 1000 young adults by logistic and ordered logistic regression. Results show that there is a considerable difference of financial behavior between people who are financially equipped by classes with those who do not. However, we find that financial literacy has a negative impact on short-term financial behavior while the outcome on long-term financial behavior is opposite. This new discovery broadens our understanding of the context for financial literacy and behavior.