Factors influencing financial literacy of the poor in rural areas: Empirical research with the case of Vietnam

Abstract

This paper aims to investigate the impact levels of factors on the financial literacy of the poor in a rural area, using as a case an emerging country such as Vietnam. Qualitative and quantitative methods have been employed with primary data from 512 questionnaire respondents and 12-expert in-depth interviews. The result has shown that internal factors, including financial knowledge, financial behavior and financial attitude, are the reflective models affecting financial literacy, in which knowledge about savings and financial investment has the most significant influence. The study also tested that, among demographic factors, age, income, and education level positively impact financial literacy, while gender has no significant effect. Based on the findings, recommendations are proposed to shape the saving habits of the poor in rural areas and form financial attitude and financial behavior.

Financial Literacy Variables in Microfinance Institutions studies: A Systematic Literature Review

“…Money and mobile money transactions Morawczynski and Pickens, 2009;Reeves and Sabharwal, 2013;Munyegera and Matsumoto, 2018;Chiwaula et al, 2020;Kamdjoug et al, 2020;Chidambaranathan and Guha, 2020;Hasan and Hoque, 2021;Banciu et al, 2022;Illangakoon et al, 2022) 10 14 Loan repayment (De Mel et al, 2008;Wanjiku and Muturi, 2015;Munyua, 2016;Gaudence et al, 2018;Smits and Günther, 2018;Ghosh and Guha, 2019;Baidoo et al, 2020;Redson and Magali, 2022;Sayankar and Mali, 2022). 10 14 Investment (Morawczynski and Pickens, 2009;Das and Dutta, 2014;Rahman et al, 2015;Robert et al, 2018;Ajibola et al, 2020;Khuc et al, 2022;Banciu et al, 2022;Khursheed, 2022;Bellazzecca and Biosca, 2022). 9 12 Financial attitude (Das and Dutta, 2014;Froelich et al 2015;Razak et al, 2020;Chidambaranathan and Guha, 2020;Moko et al, 2022;Khursheed, 2022;Illangakoon et al, 2022).…”