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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences
(AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL532
Factors Affecting Personal Financial Management Behaviors:

Evidence from Vietnam
Nguyen Thi Ngoc Mien,

University of Economics Ho Chi Minh City, Vietnam.
E-mail: ngocmien@ueh.edu.vn
Tran Phuong Thao,

University of Economics Ho Chi Minh City, Vietnam.
E-mail: tranthao@ueh.edu.vn
___________________________________________________________________________
Abstract
This study investigates factors affecting personal financial management behaviors by

examining the relationships among four factors including personal financial attitude,
financial knowledge, locus of control and financial management behaviors. The research
model is examined by using a survey approach on the youth in Vietnam. In the paper,
Cronbach’s alpha, exploratory factor analysis and confirmatory factor analysis were used to
test measurement scale while the structural equation modeling is used for measuring the
relationships. The findings suggest that, all three key factors have direct effects on financial
management behaviors, in which they explained 62.1% of the variance of financial
management behaviors of respondents. Financial attitude and financial knowledge
significantly positive relate to financial management behaviors. Besides, the person who has
more external locus of control leads worse financial management behaviors. In addition, the
results do not support for the indirect effect of financial knowledge on financial management
behavior through locus of control and the moderated role of financial knowledge on the
relationship between financial attitude and financial management behavior. These findings
could be useful references for related organizations as well as financial institutes that are
interested in developing personal financial management in a context of emerging economies
like Vietnam.
___________________________________________________________________________
Keywords: financial management behavior, financial attitude, financial knowledge, locus of
control
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1. Introduction
In recent years, financial management practices of youth have received the increasing
attention of a wide range of organizations, such as government agencies, community
organizations, college and universities, etc. The youth are growing up in a culture of debt
facilitated by expensive lifestyles and easy credit (Dugas, 2001). However, young adults often
begin their college careers without ever having been solely responsible for their own personal
finance (Borden et al., 2008). It was also pointed out that the young generation rarely
practiced basic financial skills, such as budgeting, developing a regular savings plan or
planning for long term requirements (Birari and Patil, 2014). They also may be unprepared to
effectively manage the psychological costs associated with high debt; for example, increased
levels of stress and decreased levels of psychological wellbeing (Norvilitis and Santa, 2002).
Known as an emerging economy, the Vietnam’s yearly per capita income has been
estimated to reach USD1.960, which is ranked at the 166 position in the world (Vietnamnet,
2013). The rate of saving on income in Vietnam is 13 to 14 percent, which is rather low
compared to other East Asian countries. Moreover, according to the survey of Department of
Education and Training, Save the Children, one third of Vietnamese students questioned
thought the amounts were less than they needed for their daily expenditure (Vietnamnet,
2012). The survey also revealed that the most allowances were spent on clothing, cosmetics,
cinema tickets and on eating in salubrious restaurants as a way of showing how well off they
were. This situation proves that the young do not have abilities to plan for their spending in
meeting their day-to-day financial obligations. These poor financial behaviors will have
consequential, detrimental, and negative effect on their lives at home and work.
In the literature, there are many studies investigating the relationship between personal
financial management behavior and personal characteristics such as financial knowledge
(Ibrahim and Alqaydi, 2013; Robb and Sharpe, 2009), financial attitude (Dowling et al., 2009;
Shime et al., 2009) and locus of control (Falahati and Paim, 2012; Britt et al., 2013).
However, such studies in the Vietnamese context is limited, particularly studies towards
young people (Le et al., 2009). Therefore, the objective of this study is to examine the
relationship among financial knowledge, financial attitudes, and locus of control in explaining
personal financial management behavior among the youth in Vietnam.
The paper covers 5 sections. Section 2 is a review of related literature. Section 3 shows
methodology. Section 4 indicates results and discussion. The final section is conclusions and
recommendations.
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2. Literature Review
2.1 Personal Financial Management Behavior
Financial management behavior is considered one of the key concepts on the financial
discipline. Many definitions are given with regarding to this concept, for example, Horne and
Wachowicz (2002) propose financial management behavior as the determination, acquisition,
allocation, and utilization of financial resources, usually with an overall goal in mind while
Weston and Brigham (1981) describe financial management behavior as an area of financial
decision-making, harmonizing individual motives and enterprise goals. Joo (2008) indicates
that effective financial management behavior should improve financial well-being positively
and failure to manage personal finances can lead to serious long term, negative social and
societal consequences. Thus, financial management is mainly concerned with the effective
funds management.
Failure in managing an individual’s finance can lead serious long-term consequences not
only for that person but also for enterprise, society (Ismail et al., 2011). Hence, personal
financial management behavior has received an increasing concern of researchers in recent
years. In the study by Deacon and Firebaugh (1988), personal financial management is
defined as the set of behaviors performed regarding the planning, implementing, and
evaluating involved in the areas of cash, credit, investments, insurance and retirement and
estate planning. Xiao and Dew (2011) take into account the personal financial management
with regard to cash flow, credit, saving and investing management. There are many studies in
Vietnam before which examining only one dimension of financial management behavior such
as credit card (Nguyen and Lai, 2013; Vuong and Nguyen, 2013) or saving (Gries and Ha,
2014). However, measuring many different domains of financial management behavior is
important because each domain has a serious role (Xiao and Dew, 2011). This study expands
on the studies before in finding out factors affecting on financial management behavior in
general.
The conceptual model of this study is supported by two foundational theories including
the family resources management model and the theory of planned behavior. The family
resource management model, as given by Deacon and Firebauge (1988), shows that decision
process includes connected sequences started by inputs and continued by throughput, output
and the feedback linking back to the inputs. Parrotta and Johnson (1996) modified that model
by defining financial knowledge as the input, financial attitude and financial management
behavior as two subsystems of the throughput. This is called financial management
conceptual framework to investigate effects of financial knowledge and financial attitude on
financial management behavior. In addition, the theory of planned behavior of Ajzen (2002)
concludes perceived control over performance of a behavior, which may be perceived by
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some as being similar to locus of control, can account for a considerable variance in actions.
In summary, combining the financial resource management model and the theory of planned
behavior gives a general view on the relationship between financial behavior and financial
attitude, financial knowledge, locus of control.
2.2 Hypothesis Development on Personal Financial Management Behaviors
In the literature, several factors are used to examine their relationships with regard to the
personal financial management behaviors; however, three critical factors are discussed in
many recent studies including financial attitude, personal financial attitude, financial
knowledge, locus of control (Dowling et al., 2009; Ibrahim and Alqaydi, 2013; Shime et al.,
2009; Britt et al., 2013). As such, this paper suggests several hypotheses on these
relationships given as follows:
Financial Attitude and Personal Financial Management Behaviors
Financial attitude can be considered as the psychological tendency expressed when
evaluating recommended financial management practices with some degree of agreement or
disagreement (Parrotta and Johnson, 1998). A number of researches have concluded that
financial attitudes play an important role in determining a person’s financial behavior (Davis
and Schumm, 1987; Shih and Ke, 2014). Financial attitudes shape the way people spend,
save, hoard, and waste money (Furnham, 1984). Thus, one hypothesis is suggested as follow:
Hypothesis 1 (H1): There is a positive relationship between financial attitudes and
personal financial management behavior.
Financial Knowledge and Personal Financial Management Behaviors
The term financial knowledge is defined as sufficient knowledge about facts on personal
finance and is the key to personal financial management behaviors (Garman and Forgue,
2006). The importance of financial literacy is obvious as it is typically used as an input to a
model that determines the need for financial education and explained variations in behavior
and financial outcomes such as savings, investment, and credit behavior (Idris et al., 2013).
The relationship of these two variables is conclusive, with all studies find that having
financial knowledge does influence individuals to behave in a more financially responsible
ways (Robb and Woodyard, 2011; Zakaria et al., 2012). The consumers who are financially
knowledgeable are more likely to behave in financially responsible way (Hogarth and Hilgert,
2002). Therefore, this study suggests a following hypothesis:
Hypothesis 2 (H2): There is a positive relationship between financial knowledge and
personal financial management behavior.
Financial Knowledge, Financial Attitudes and Personal Financial Management Behavior
Through research in psychology literature, it has been suggested that the magnitude of the
attitude–behavior relation may be moderated not by attitude accessibility but by other
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correlated factors such as certainty, amount of knowledge, or the attitude’s temporal stability
(Eagly and Chaiken, 1993). Parrotta and Johnson (1998) find a positive relationship between
financial attitudes and financial behaviors. Similarly, Joo and Grable (2004) find that, people
with stronger perceptions and positive financial attitudes tend to more successful in financial
management. Therefore, the relationship between financial knowledge, financial attitudes and
personal financial management behavior is suggested in this study as follows:
Hypothesis 3 (H3): Financial knowledge moderates the relationship between financial
attitudes and financial management.
External Locus of Control and Personal Financial Management Behavior
The term locus of control construct is best conceptualized as a person’s perception of their
place in the world (Rotter, 1966). According to Hellrigel et al. (2010), locus of control refers
to the extent to which individuals believe that they can control events which affect them.
Locus of control had two dimensions: internal control and external control. Those with an
internal locus of control are apt to be goal driven and often than not. External control referred
to events such as luck, chance, and fate as being under the control of powerful others
(Hoffman et al., 2000).
Dessart and Kuylen (1986) found that people who were more external in their orientation
were more likely to experience financial difficulties. Tokunaga (1993) reports that the more
external the orientation, the more likely were people to use consumer credit unsuccessfully.
Perry and Morris (2005) conclude that how people feel about money depends on how they
feel about their lives. Locus of control has also been to discriminate between those who save
and those who do not, in which savers being internal in orientation than non-savers (Lunt and
Livingstone, 1992). From the previous research, the following locus of control hypothesis is
proposed in this study:
Hypothesis 4 (H4): There is a negative relationship between external locus of control
and personal financial management behavior.
Financial Knowledge, Locus of Control and Financial Management Behavior
Hayes (2006) states that, financial education may be of little value if personal
responsibility is not included. Perry and Morris (2005) argue that individuals may not take full
advantage of their knowledge or financial resources unless they feel that they control their
own destiny. In the research explaining financial behavior for Koreans living in the United
States, Grable et al. (2009) find that locus of control mediate the effect of financial knowledge
on responsible financial management behavior. The study by Zakaria et al. (2012) finds
evidence support for a mediating role of a locus of control on the relationship between
financial knowledge and personal financial management behavior. As such, this study
proposes a following hypothesis:
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Hypothesis 5 (H5): The relationship between financial knowledge and personal financial
management behavior is mediated by locus of control.
2.3 Conceptual Model
Based on the above studies, a conceptual model is proposed. Details about the conceptual model
and its hypotheses as follows:
Financial Attitudes H1(+)
H3
Financial Knowledge H2(+) Personal Financial Management
Behavior
H5 H4 (-)
External
Locus of Control
Figure 1: A Conceptual Model
3. Methodology
3.1 Research Design
In the paper, two phases of study were undertaken in this research: a pilot study and a
main survey. The pilot’s purpose was to modify and refine the measures. The main survey
was used to test the measurement and structural models. In addition, four constructs were
examined including personal financial management behavior (FB), financial attitude (FA),
financial knowledge (FK), and locus of control (LC). Only FB was second-order constructs,
while FA, FK, and LC were first-order constructs.
The measurements of constructs are based on prior studies. Specifically, personal
financial management behavior was adopted from Xiao and Dew (2011). It includes 12 items,
measured participants’ financial management behaviors in three domains: cash management,
savings and investment, and credit management. Sixteen items of Rajna et al. (2011) are used
to measure attitude toward finance. Financial knowledge was measured following Perry and
Morris (2005), which measured based on individual’s self-assessment of knowledge about
financial matters. Finally, locus of control was measured by 7 items, adopted from Rotter
(1966). Five-point Likert-type scale was used for all items in this study. Details can be seen in
the Appendix.
A paper-based questionnaire was developed to collect data to validate the constructs. This
questionnaire was firstly developed in English, and was translated into Vietnamese later
because English is not well understood by all respondents in Vietnam. It was divided into two
parts. The first part of the survey included questions regarding demographic of the
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respondents. The second part contained questionnaire items that measure four constructs in
the proposed model.
3.2 Sampling
For the pilot test, the initial data was a sample of 64 respondents collected from the
population of the youth from 19 to 30 years old. All are living in HCM City. After conducting
the pilot test, the survey via questionnaire with 39 items is completed.
According to Hair et al. (2010), the sample should be 100 or greater and the minimum
sample should have a desired ratio of five observations per item. Hence, the minimum sample
size needed for testing overall model was 195. Data were collected using convenience sample
method with a structured questionnaire. The study population comprised of the youth who
studying or working in Ho Chi Minh City and from 19 to 30 years old. For the study, 400
questionnaires were distributed directly to respondents. After the collection, 307
questionnaires are suitable. The accepted responses must not have more than 30 percents
missing value and all answers were not at the same value.
3.3 Research Method
The first step in analyzing the data collected is test of reliability by Cronbach’s anpha.
Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were used to test
validity of measurement scales. The structural equation model (SEM) had been used as the
main method for analyzing the research model to test the hypotheses.
To test the moderating effects of knowledge on the relationship between financial attitude
and financial management behavior, the multi-group analysis in SEM was conducted. The
indirect effect of financial knowledge toward to financial management behavior through locus
of control was also tested by using Sobel’s test (Sobel, 1982). In addition, for the moderating
effect of the financial knowledge, the multiple group analysis is used. Both the SPSS and
AMOS package are used to analyze the data.
4. Data Analysis and Results
4.1 Respondents’ Characteristics
Total 307 questionnaires were gathered from the respondents from 19 to 30 years old.
Initial analysis of data indicated that gender was represented with 57.3% of respondents were
female and 39.4% were male. Age ranged between 19 to 30 years old, with 26.1% of the
respondents between 19 and 22 years old, 34.2% of respondents between 23 and 26 years old,
and 39.7% from 27 to 30 years old. The academic attainment of the respondents was relative
high, only 21.8% of respondents’ education level under bachelor. 86.1% of the respondents
have the income less than 10 million VND per month. This easily to understand in which the
respondents of this study are the young who are undergraduates or just start their career. In
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summary, respondents are widely diverse by different gender, age, education level, and career.
4.2 Results on the Relationship between Factors
4.2.1 Exploratory Factor Analysis (EFA) Results
After run Cronbach’s alpha to test validity of variables in the pilot test, although financial
attitude variable also had the acceptable Cronbach’s alpha, the item – total correlation values
of almost items were very low. It could be explained that financial attitudes might be a higher
– order constructs. So, in the main survey, EFA was first run to refine the financial attitude
variable. It was modified with four constructs: attitude toward daily financial behavior
(FA_FB), attitude toward saving plan (FA_SP), attitude toward financial management
(FA_FM) and attitude toward future financial ability (FA_FF).
Cronbach’s alpha was used to examine reliability of all scales in the main survey. The
results indicated that, almost scales (except credit management and attitude toward saving
plan) satisfied the requirement of reliability. Three items had low corrected item-total
correlation and the Cronbach’s alpha if these items deleted increased significantly. So, these
items were deleted from the measurement scale. All Cronbach’s alpha is higher than 0.6.
After testing Cronbach’s alpha coefficient, all measures (including financial attitude)
were continued to be analyzed by EFA. The KMO value (0.813) is greater than 0.5 which
mean the data set is likely to factor well. In addition, Bartlett’s test showed the significant
value is very small, which indicating that the correlation matrix is significant different from
an identity matrix. As result, both acceptances for diagnostic tests confirm that the data are
suitable for factor analysis. There were 9 factors which had the eigenvalues more than 1. The
extraction sum of squared loading showed that with 9 factors were extracted; it could explain
64.612% of the information contained in the original variables.
4.2.2 Confirmatory Factor Analysis (CFA) Results
The distribution of variables showed that, all of them had skewness value within (-0.860
to 0.462). The kurtosis value was within (-1.061 to 0.693). The data might exhibit slight
deviations from normal; however, the absolute values were less than 3.0 for skewness and
10.0 for kurtosis. Measurement model can be estimated using maximum likelihood method
evaluate the measurement variables of each construct (Kline, 1998).
Financial behavior was comprised of three components: cash management, credit
management and saving. The CFA result indicated that the measurement model of financial
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behavior received an acceptable fit of data:  (32)  51.623 (p-value = 0.015 < 0.05),
CMIN/df = 1.613, CFI = .965 and RMSE = .045. In addition, all factor loading is of this
model had value higher than .4 and significant. Hence, the scale had convergent validity. The
composite reliability of cash management, credit management and saving management in turn
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were .674, .602 and .759, which satisfied reliability standardize. In general, this model fitted
well and had unidimensionality.
The CFA result indicated that the measurement model of financial attitude received an
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acceptable fit of data:  (59) 169.584 (p-value = .000), CFI exceeded .9; RMSEA value
was .078 lower than .08. The factor loadings for all items ranged from .520 to .930 and be
significant. The composite reliability of attitude toward financial management, attitude
toward daily financial behavior, attitude toward saving plan and attitude toward future
financial ability in turn were .793, .781, .654 and .806, which satisfied the condition greater
than .6. These findings indicated that the scale measuring the components of financial attitude
were unidimensional. CFA results showed that, the correlation of each pair of have value
ranging from .05 to .45, which significant less than 1, indicating discriminant validity.
A saturated model was needed to generate in order to test discriminant validity for all
constructs of research model. The Chi-square value of the model was 939.477, chi-square
normalized by degree of freedom (2/df) was 1.868 less than 3, and RMSEA value was 0,053.
All of the factor loadings for the items were higher than .5 which means these scale had
convergent validity. However, the TLI and CFI of the model correspond with .847 and .863.
In order to test the discriminant validity, the correlations between the variables need to be
considered. SEM analysis result presented that relationships between constructs in research
model were different 1.00. All of the p-values were very small, so the null hypotheses were
rejected. Thus, four constructs in this study had discriminant validity.
Table 1: Relationships between Constructs
Relationship R se(r) 1-|r| Critial value p-value

LC  FA -.47 .0505 .53 10.5036 .000
FB  FK .563 .0472 .437 9.2496 .000
FK  LC -.16 .0564 .84 14.8858 .000
FB  LC -.37 .0531 .63 11.8623 .000
FB  FA .803 .0341 .197 5.7822 .000
FK  FA .555 .0476 .445 9.3578 .000
4.3 Results on Hypothesis Testing

The hypotheses H1, H2, H4, and H5 can be tested through the structural model. The
standardized coefficient showed that, financial attitude had the strongest effect on personal
financial management behavior. The chi-square divided by degree of freedom was 1.952 less
than 3, the RMSEA value equaled to .056 less than .08. However, the CFI and TLI indices
were still greater than .8, so the model was able to accept. Figure 2 shows the results of the
structural model, including the paths and standardized regression estimations.
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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and
Social Sciences (AP15Vietnam Conference) ISBN: 978-1-63415-833-6 Danang-Vietnam, 10-12
July, 2015 Paper ID: VL532
Table 2 was the summary of the results of the hypotheses test. The result showed that
regression estimator of relationship between financial attitude and financial behavior was
1.106. That means a more positive in financial attitude, the more responsible in financial
behavior. Thus, this hypothesis was supported. This estimate had p-value = .000 (see in Table
2). Simultaneously, impact of financial attitude was confirmed significantly to financial
behavior.
Figure 2: SEM Results

Regression coefficient of financial knowledge was .348 with the standard error equals .082.
The coefficient was greater than 0, which means an increase in financial knowledge would lead an
increase in responsibility of personal financial management behavior. Financial knowledge had a
significant direct impact on personal financial management behavior (p-value = .000 was lower
than .05). Besides that, financial knowledge had an indirect impact on financial management
behavior through locus of control. The coefficient represented for this relationship was -.133. Total
effect of financial knowledge was .37.
Hypothesis 4 assumed that, external locus of control had the negative direct effect on
personal financial management behavior. The coefficient was -.133 less than 0, which means
the hypothesis 4 was supported. The null hypotheses that this coefficient equals 0, or locus of
control hadn’t effect on personal financial management behavior, was rejected (p-value = .
045).
Table 2: Result of Hypothesis Testing
Hypothesis Path Results Conclusion
Coefficient Se c.r p_value
H1 FA  FB 1.106 .212 5.211 .000 Support
H2 FK  FB .348 .082 4.240 .000 Support
H4 LC  FB -.133 .067 -2.004 .045 Support
H5 FK  LC -.147 .085 -1.735 .083 Not support
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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP15Vietnam Conference) ISBN:
978-1-63415-833-6 Danang-Vietnam, 10-12 July, 2015 Paper ID: VL532
Although the effect of financial knowledge on locus of control has insignificant statistic at
the significant level .05, this study kept using the Sobel test to examine again whether locus of
control was a mediator of the relationship between financial knowledge and personal financial
management behavior. The results show that the null hypothesis the indirect effect of financial
knowledge on financial management behavior through locus of control is zero was 1.100 with
the p-value was quite high (p-value = .2712). It means that the hypothesis 5 didn’t support.
4.4 Results on the Moderating Effects of Financial Knowledge
To examine the moderating effect of financial knowledge, the multiple group analysis is
applied. Accordingly, two groups of financial knowledge were created. Specifically, high and
low financial knowledge group were defined via the median split (3.0) on the knowledge
scores calculated as the average of the five items of financial knowledge. High financial
knowledge group included respondents had average score higher than 3. On the contrary, low
financial knowledge group included respondents had average score lower than 3.
From the previous part, financial knowledge didn’t have the indirect effect on personal
financial management behavior through locus of control, so, this relationship was removed
from the full model. Two structural models were test: the variance model and the partial
invariance model. In each model, the direct effect of financial knowledge and locus of control
were controlled by imposing equality constraints across subgroups.
The result for multi-group of general non-restricted model of high financial knowledge
and low financial knowledge exhibited that, 2 = 1818.881, p-value = .000, 2/df = 1.756,
RMSE = .054. The result of partial invariance model showed that, 2 = 1819.179, p-value =
.000, 2/df = 1.754, RMSE = .054. The estimation of both variance and partial invariance
models of two financial knowledge groups, fit the data.
Regarding the relationships between the financial attitudes and financial behavior, with
one degree of freedom, the restricted model exhibits a non-significant chi-square difference at
p-value = .59. In other words, financial knowledge does not moderate the relationship
between financial attitudes and financial management.
Table 3: The different between Variance and Partial Invariant Model
Comparative model 2 Df p-value CMIN/df CFI RMSE
Variance 1818.881 1036 .000 1.756 .69 .054
Partial invariance 1819.179 1037 .000 1.754 .69 .053
 .298 1 .585 .002 .00 .001
5. Conclusions and Recommendations

This study investigates the relationships among financial attitudes, financial knowledge,
locus of control and personal financial management behaviors in the sample of 307
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Vietnamese young people. Support for the hypothesis indicates that financial attitudes,
financial knowledge and locus of control play important roles in explaining financial
management behavior (explain 62.1 percent of variance of financial management behavior).
Financial attitude and financial knowledge were significantly positive related to financial
management behavior. External locus of control had negative effect on financial management
behavior. This study also shows that financial attitude, not financial knowledge or self-
control, has a substantial influence on practices in financial management. Similar results had
also found in some studies such as Parrotta and Johnson (1998) and Joo et al., (2003). These
findings might be a key point for educational initiatives to be more aware of the financial
attitude role in financial behavior of the young when providing training programs. For the
government agencies, especially the Communist Youth Union at universities, the Labor Union
at companies, it is advised to organize more financial seminars which aim to remind the
young of the importance of responsible financial management behavior. Students, employees
must be taught to take responsibility for their actions. These finding also give implications for
parents who have children are in college-age. The results give the parents the way to forecast
their children financial management tendencies based on their locus of control, knowledge,
and attitude. Thereby, they can grasp opportunely financial problems of their children and
monitor their college-age children’s financial management behavior.
Through the structural model and the Sobel test, locus of control mediated role on the
relationship between financial knowledge and financial behavior was rejected. Furthermore,
the hypothesis that financial knowledge moderates the relationship between financial attitude
and financial behavior was not supported in this study. This result did not concur to several
studies that confirmed that the attitude – behavior moderated by financial knowledge (Baron
and Kenny, 1986; Joo and Grable, 2004). It can be explained that financial knowledge in this
study measured by self-evaluation of the respondents and it may be bias of their actual
financial knowledge. This can be seen a limitation of this study and needed updating in future
research.
Measurement scales in this research are adapted from previous research and are used to
measure in Vietnam. Our findings support and validate of financial management behavior
scale suggested by Xiao (2011). Besides that, financial attitude scale suggested by Rajna
(2011) was use, but it need to modified a lot to be suitable with data of Vietnam. From the
initial scale, financial attitude becomes multiple-dimension variables with four constructs:
attitude toward daily financial behavior, attitude toward saving plan, attitude toward financial
management and attitude toward future financial ability. This result can be a good reference
for future research related to personal financial management behavior.
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Appendix
Sources of Questionnaire Items
Construct Measure items Reference
Personal Cash management Xiao and
financial FB1 Comparison shopped when purchasing a product or service Dew
management FB2 Paid all your bills on time (2011)
behavior (FB) FB3 Kept a written or electronic record of your monthly expenses
Stayed within your budget or spending plan
FB4 Credit Management
Paid off credit card balance in full each month
FB5 Maxed out the limit on one or more credit cards
FB6* Made only minimum payments on a loan
FB7* Saving and Investment
Began or maintained an emergency savings fund
FB8 Saved money from every paycheck
FB9 Saved for a long-term goal such as a car, education, home
FB10 Contributed money to a retirement account
FB11 Bought bonds, stocks, or mutual funds
FB12
15
Financial FK1 I know about interest rates charged by bank, borrowing rates Perry and
Knowledge charged by financial institution. Morris
(FB) FK2 I know about credit ratings done by companies and why it is done. (2005)
I know about managing personal finance
FK3 I know how to invest my money in buying shares on the stock
FK4 market
I clearly understand the balance on my bank statement
FK5
Financial FA1 It is important for me to develop a regular pattern of saving and Rajna et
Attitude (FA) stick to it. al. (2011)
FA2 I should have written financial goals that help me determine
priorities in spending.
FA3 A written budget is absolutely essential for successful financial
management.
FA4 Each individual should be responsible for his or her own financial
wellbeing.
FA5* Keeping records of financial matters is too time-consuming
FA6* Saving is not important.
FA7 As long as I meet monthly payments, there is no need to worry
about the length of time it will take me to pay off outstanding
debts.
FA8* It does not matter how much I save as long as I do save
FA9* I should really concentrate present when managing my finances
Financial planning for retirement is not necessary for assuring
FA10 one's security during old age.
It is essential to plan for the possible disability of my wage.
FA11 Making sure my property is insured against reasonable risks is
FA12 necessary for successful financial management.
Planning is an unnecessary distraction when families are trying to
FA13* get by today
Planning for spending money is essential to successfully
FA14 managing my life
Planning for the future is the best way of getting ahead
FA15 Thinking about where I will be financially in 5 or 10 years in the
FA16 future is essential for financial success
Locus of LC1 There is really no way I can solve some of my problems Rotter
control (LC) LC2 I am being pushed around in my life (1966)

LC3* I can change the important things in my life by myself
LC4* I can do anything I set my mind on
LC5* What happens to me in the future depends on me
LC6 I’m helpless in dealing with the problems of life
LC7 I have little control over the things that happen to me
* Item needs to be reversed
16

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Proceedings of the Second Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences

Factors Affecting Personal Financial Management Behaviors:

Nguyen Thi Ngoc Mien,

Tran Phuong Thao,

This study investigates factors affecting personal financial management behaviors by

Figure 1: A Conceptual Model

4.3 Results on Hypothesis Testing

Figure 2: SEM Results

H4 LC  FB -.133 .067 -2.004 .045 Support

H5 FK  LC -.147 .085 -1.735 .083 Not support

 .298 1 .585 .002 .00 .001

5. Conclusions and Recommendations

control (LC) LC2 I am being pushed around in my life (1966)

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