4/5/2019 PERSONAL FINANCIAL MANAGEMENT
PERSONAL FINANCE MANAGEMENT
Reporter: HUYNH MINH PHUONG NGHI
APRIL 7, 2019
GROUP: C1
ID student: 14633
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 1/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
TABLE OF CONTENTS
Abstract ………………………………………………………………………………….. page 2
Introduction ……………………………………………………………………………… page 2
Methodology ……………………………………………………………………………. page 2-3
Results …………………………………………………………………………………. page 3-11
Discussion ……………………………………………………………………………… page 11
Conclusion ……………………………………………………………………………. page 12
References ……………………………………………………………………………. page 12
Appendix …………………………………………………………………………… page 12-15
Abstract
According to Maura Fogarty in 2012, financial experts researched that people had made their
incomes in modern decades much more than their old generations. Therefore, the knowledge of
how to manage their financial management has been improved gradually but they are not
completed at all. Additionally, setting up our personal finance’s plan and practicing it regularly
is very crucial for every individual. The main purpose of this report is to give the importance
and the awareness of managing our personal budget in each citizen in Viet Nam and the
difficulties in setting up long term budget. This survey was conducted by giving an online
survey to all aged – groups after a five – day period of posting it on the social networks. Results
of the assessment indicated the consideration of the private funds in daily life is still limitations
and weakness. With these results, we can see that the significance of having the knowledge of
managing our money pocket is very crucial.
Introduction
Financial professionals investigated that human beings had their earnings in the 21st century
much more than their old era so that the amount of knowledgeability on how to plan our
incomes wisely has not been perfect at all. (Maura Fogarty, 2012). Moreover, taking
responsibility for managing our finance and putting it into implementation is very essential for
every citizen. This is not only to manage our household budget but also to save for a better life
and future such as for our retirement life, our children education and living without debt and
stressful. Hence, every individual should have this awareness and know the significance of their
personal financial management. In addition, there are many studies about the topic of personal
finance around the world such as in the United Kingdom, USA, Brunei, Japan, … However,
there has been very little research in Viet Nam about personal finance management, especially,
in Ho Chi Minh City and Binh Duong. Therefore, in this writing, the importance of controlling
our household budget and the awareness of personal finance management in Ho Chi Minh City
and Binh Duong will be discussed. Finally, this report would be very helpful for the readers who
have less the knowledgeability of the significant financial household money pocket.
Methodology
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 2/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
The main target of this questionnaire was to analyze the individual attitudes about the
management of personal incomes in Viet Nam specifically so that we can provide the important
understandings of controlling your earnings. With this objective, the reporters had to read
several famous and reliable online surveys that had been made by the professional analyst in the
financial aspect. After two days of searching and discussing the way to build this opinion poll,
the survey was created on Google Form including 14 questions. These questions related to
different viewpoints about individual asset management such as the problems in making your
personal earnings and the knowledge of the values in managing your incomes. Furthermore, this
survey contained 4 ranking scale questions from 1 to 5, 6 matrix questions, 1 checkbox
question, 1 textbox question and 1 Yes/No question. Additionally, these scale questions were
built to ask to agree or disagree (number 1: very agree, number 2: agree, number 3: neither
agree nor disagree, number 4: disagree and number 5: very disagree). However, there was one
question eliminated from this Google Form sheet which was asking about the major studies or
jobs because of the responses from all the students and workers were not distinguish from their
studies or their jobs.
After receiving the feedbacks about the understandability ‘s survey from 5 classmates and
teacher, the pilot survey was posted up the social networks such as Facebook, G-mail and
Messenger. This questionnaire was public in 5 days from March 2nd to March 7th in 2019 and
received 107 responses who live in Ho Chi Minh City and Binh Duong. Moreover, with the
beneficial use of Google Form sheet and social networks, the replies were more and more
reliable, truthful and objective. Although there were lots of positive feedbacks, there would be
some certain deviations for analyzing because of the proportion of men and women is different
by age groups. The results were converted into pie charts and bar graphs in order to investigate
easily.
Results
The results of the opinion poll will be presented in three categories according to the following
features: Demographic Statistics, Individual Standpoints, Real State of Affairs.
1. Demographic Statistics:
In 107 answerers for the online survey, there was a significant disproportion between female
and male with the number of the woman was double the number of men. When surveying the
participants, the highest percentage of aged – groups was 18 – 22 group (32%) and the lowest
percentage was under 18 group (7%). While other groups from 23 to 59 years old were about
20%. Finally, it can be seen from the final pie chart in demographic profiles that had a
remarkable number of university graduates (38 respondents) and freshman (26 respondents). In
addition, senior and doctor were the top 2 lowest groups (senior – 2% and doctor – 3%) in the
academic standing figure.
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 3/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 4/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
2. Individual Standpoints:
When using the scale questions from to ask the participants about their viewpoints of
planning their savings, there was a significant proportion in scale 1 (54.2%) which
belongs to Graph 1. However, from the first graph, it can be concluded that the level of
opinions in setting the vital long-term financial goal and achieving it from 1 to 5 had a
considerable decrease (54.2% to 2.8%). We can see from Figure 2, the respondents who
had the “neither agree nor disagree” answer, was the highest in the second graph (38.3%)
while the other responses were just under 30% and the level 2 had the lowest percentage
(8.4%). In Graph 3, that the number of contributors who neither agreed nor disagreed in
thinking “Saving is more important than investing” question was the highest proportion
(36.4%). While there were 4 feedbacks – a very little number about “very agree” answer
and there were lots of disagreement responses (total: 51 answers). The final pie chart
shows the statistics of the viewpoints of asking about savings. In this chart, a “Yes”
feedback had remarkable responses (57 answers) and the second highest percentage was a
“Necessary but haven’t begun” reply (36%). Moreover, the rest replies had the percentage
which was under 10%.
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 5/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Figure 1
Figure 2
Figure 3
3. Real State of Affair:
From the first bar chart, it indicates that there is a considerable number of people having
difficulties in facing the management in their private money. In addition, the problems of
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 6/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
saving personal earnings increased significantly and was the highest amount (30/35
responses). Furthermore, from Figure 1, we can see that “Overuse” and “None”
feedbacks which are the top three having the great statistics (Overuse: 22 and None: 12)
while the rest of difficulties were just under 29%. The combination of Figure 2 and
Figure 3 points out a disparity of the partakers in individual economic manageability
course between female and male. In Figure 2, there were the significant people who did
not take part in that class (85%) while the feedback from the respondents who had
answered “Yes” were nearly one-fifth percentage of the “No” responses (15%/85%).
Moreover, from the Figure 3, it can be shown that women who were more and more
higher than male in both “Yes” and “No” replies (Female – “Yes”: 20% and Male –
“Yes”: 5.9%).
Figure 1
Figure 2
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 7/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Figure 3
From Figure 4, we can see that 107 contributors having the different feedbacks about
planning emergency funds in case of sickness, job loss, economic downturn or other
emergencies. There were the biggest minority of “Not necessary” response (1%) and had a
dramatic disparity between the answers which had under 10% (“Not necessary”, “Haven’t
thought before” and “Don’t have the ability to set emergency funds”) and the “Yes” and
“Necessary but haven’t begun” replies. The major thoughts from this chart were a “Yes”
respond with 53% and a “Necessary but haven’t begun” viewpoint with 36%. The Figure 5
shows that the trend of setting up an emergency fund in the different aged- groups with five
categories: Under 18, 18 – 22, 23 – 29, 30 – 39 and 40 -59. We can see that the major trend in
this line graph increased with the aged – groups. Additionally, the “Under 18” group was at the
lowest point with 14.29% but from 23 to 39 years old, it remained stable with the 2.5 %
difference. While from 18 to 29 years old and from 30 to 59 years old had a significant growth
(18 - 29: rose 17.15% and 30 – 59: rose 12.81%).
Figure 4
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 8/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Figure 5
The combination of Figure 6 and Figure 7 shows data about the level of recording 107
respondents’ expenses in Ho Chi Minh City and Binh Duong and the level of considering
carefully before buying something. From Figure 6, we can see that the division of this chart
was almost less than a third including always, sometimes, often, just in important events and
never. 10% and 13% of 107 answers which were about the “Never” and “Always” levels
respectively were at the lowest point. The statistics from this pie chart indicates that the largest
proportion was “Sometimes” (29%). While “Just in important events” and “Often” answers had
the small disproportion (“Just in important events” – 25% and “Often” – 23%). From Figure 7,
there were two equal parts of participants responding “Seldom” and “Just for the luxurious
items” responses (6%). People who had the “Sometimes” and “Often” feedbacks were at the top
two highest statistics respectively (“Sometimes” – 35% and “Often” – 37%).
Figure 6
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 9/4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Figure 7
Figure 8 gives information about a considerable number of sources of learning personal
financial management. In addition, these sources include 8 major origins: financial experts, life
experience, jobs, media, books, school, parents and friends. People who took part in this survey
answering their primary solution of managing personal incomes was life experience (77%).
However, the other sources had the under 20% such as financial experts (8%), jobs (16%) and
school (17%). In addition, “Media” and “Books” replies were at the average ranks with 31%
and 28% respectively. 58% and 40% of respondents had replied that they mainly studied
individual financial management from their parents and their friends respectively. From Figure
9, it illustrates the percentage of thoughts about savings containing six categories. According to
the final chart, there were three groups which had a minority disparity, just under a fifth. These
parts comprised “Have difficulties” (14%), “Love, always think saving more” (18%) and
“Know important but can’t” (10%). When asking about savings, there were 29 answerers who
always saved their money pocket naturally and constantly. Additionally, 31 respondents had the
replies which were about the savings were “Basic demands and short – term plan” response.
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 10/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Figure 8
Figure 9
Discussion
The survey evaluated the knowledge and awareness of managing individual money. From the
results, it can be proved that Vietnamese citizens are very well aware of setting up private
finance. They largely admit to the significance and essential of long-term financial planning and
emergency funds and having major trends in investing more than savings. It can be elucidated
that Vietnam's economy is still unstable, insecure and the inflation rate is still high. In addition,
the unpredictable economy and this incorporation process are also opportunities for investors,
especially in the immovable property aspect. In 2012, the US National Bureau of Economic
Research issued a study pointing out that women are less likely to invest dynamically than men.
Therefore, equality in investment which is higher than savings at men is an unpredictable thing.
Generally, it could be indicated that Vietnamese people have a good awareness of personal
finance and have a clear standpoint of its aspects. However, when asking about the knowledge
of this matter, the results of this survey that almost Vietnamese people are not learned
adequately. According to Bianco & Bosco in 2000, a potential elucidation, published by
previous research, is that the education organizations do not take into account the students'
personal financial knowledgeability. Moreover, business universities and colleges do not require
students to take a Personal Finance Management course. From the survey results, the quantities
of women taking part in personal finance management courses are higher than men, revealing
that women tend to focus on managing private finances as perhaps they are managers of the
household budget. Although their awareness is sufficient, appropriate knowledge and skills have
not been well - taught at school. Hence, it is more and more difficult for them to control their
personal assets. In fact, there are still a considerable number of people who have not done the
expenses records and considered carefully before making regular purchases. In more detail,
compared with Japan (Financial Literacy Survey, 2016), the ratio of respondents who responded
that they had considered carefully before buying something was 17.5 percentage lower. Poor
knowledge and low income also lead to drawbacks in saving and planning emergency funds.
Furthermore, the proportion of setting up emergency funds has increased with age. This can be
explained that adults have an income source and have the responsibility of taking care of their
families. Moreover, the more skills those adults have experienced, the more significance they
attach much importance to this fund.
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 11/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
Conclusion
In 2012, Maura Fogarty said that people had much more money today than they did generations
ago and the amount of knowledge on how to manage that money had not kept pace – not at all.
In addition, there are lots of studies about this matter around the world such as USA, Japan, the
United Kingdom, … However, there has been very little research reported on that problem in
Viet Nam, especially in Ho Chi Minh City and Binh Duong. Therefore, the purpose of the
present study was to investigate the awareness of controlling Vietnamese citizens’ household
budget and raise the importance of managing personal earnings. The results from the survey
indicated that there were a remarkable number of workers and students in both two regions
having the significant knowledgeability of managing their personal finance. In addition, the lack
of awareness and the difficulties in saving incomes had been presented in this writing. Hence, it
is very important for everyone to have a sense of responsibility for learning the strategies to plan
and manage our personal budget. Moreover, it is not only to enable to improve standard of
living, which leads to good health and financial stress reduces considerably. In conclusion,
according to Bimal Bhatt in 2011, the importance of personal financial management enables the
individual to take better financial decision which reduces poverty, reduces debts and increases
savings and investment.
References
1. Maura Fogarty. (2012). Save, Invest, Grow. Readers Digest. March 2012
2. Bimal Bhatt. (2011). Financial Management Importance. (From)
http://www.blognbuzz.com/financial-management-importance.html. Retrieved 12 April
2012
3. Bianco, Candy A., Bosco, Susan M.“Financial Illiteracy – What Are Business Schools
Teaching?”
(2000). Gabelli School of Business Roger Williams University, Bristol, RI.
4. 2018 JA Teens & Personal Finance Survey
https://www.juniorachievement.org/documents/20009/20652/JA+Teens+and+Personal+
Finance+Summary.pdf
5. US National Bureau of Economic Research in 2012
https://www.nber.org/papers/w18315
Appendix
1. Setting long term financial goal and try to achieve it is
necessary * Mark only one oval.
1 2 3 4 5
Agree Disagree
2. It is more satisfying to spend money than to save it for the
long term. * Mark only one oval.
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 12/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
1 2 3 4 5
Agree Disagree
3. Saving is more important than
investing. * Mark only one oval.
1 2 3 4 5
Agree Disagree
4. How satisfied are you with your current personal financial condition (assets, debts,
savings)?
*
Mark only one oval.
1 2 3 4 5
Satisfied Dissatisfied
5. Have you set aside emergency funds in case of sickness, job loss, economic
downturn, or other emergencies? *
Mark only one oval.
Yes
Not necessary
Necessary but haven’t begun
Haven’t thought before
Don’t have the ability to set emergency funds
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 13/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
6. How often do you record your
expenses? * Mark only one oval.
Always (100%)
Often (70%)
Sometimes (50%)
Just in important events
Never (0%)
7. How often do you consider CAREFULLY before buying
something? * Mark only one oval.
Always (100%)
Often (70%)
Sometimes (50%)
Seldom (10%)
Never(0%)
Just for the luxury items
8. Where did you learn your financial management? (You can choose more
than one) * Check all that apply.
Friends
Parents
School
Books
Media
Jobs
Life experience Financial
experts
Other:
9. What difficulties or problems in your personal financial management have you
faced? *
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 14/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
10. When asking about
savings? * Mark only one
oval.
I know that it is important, but I can’t.
I love saving money and always think how to save more. I
have difficulties in saving, sometimes I feel it boring.
I just save money for the basic demands or the short- term plan (travelling, electronic
devices…).
I save money naturally and constantly.
Other:
11. Have you taken a course in personal
finance? * Mark only one oval.
Yes
No
12. What is your gender?
* Mark only one oval.
Female
Male
Prefer not to say
13. What is your age?
* Mark only one
oval.
18 - 22
23 - 29
30 - 39
40 - 59
60 or older
Under 18
14. What is your academic
standing? Mark only one oval.
Freshman (First year)
Sophomore
Junior
Senior
Masters
Doctor
Student
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 15/
4
4/5/2019 PERSONAL FINANCIAL MANAGEMENT
https://docs.google.com/forms/d/1j5RXoGFq3Wh_8AIenFxIhgroJGYsi4rB5-QcNvVqWlo/edit?ts=5c7a0cc3 16/
4
