Influence of Financial Literacy on Financial Well-Being: A Case of Vietnam

Abstract

Financial well-being has garnered significant attention in Vietnam in recent years. Analysts predict that in the current global economy, the ability to effectively handle one's financial resources will be a crucial factor in achieving success. Studies indicate that financial knowledge and financial independence are measurable patterns that will inevitably develop in the near future. Financial well-being entails the capacity to make choices that enable individuals to fully experience life, thus granting them freedom. This study examines the impact of financial literacy on financial well-being. The findings demonstrate the positive correlation between financial attitudes and financial behaviors, as well as financial planning. Additionally, they reveal the positive impact of financial behaviors on financial planning, and the positive effect of financial planning on financial well-being. To achieve these outcomes, the authors employed a quantitative research approach that involved conducting a primary survey of 320 Vietnamese individuals and analyzing relevant variables using SPSS 22 and AMOS 20 software. These findings add on to the existing literature, and also indicate practical consequences as policymakers should give priority to the implementation of measures that specifically aim to enhance financial literacy, thus leading to a better financial well-being in Vietnam.