[Podcast] Financial Education: The Role of Stakeholders in the Mekong Region

26 February, 2025

Keywords: Financial literacy, Financial education, High school students, Mekong

Financial literacy has a great influence on the financial stability and sustainable development of each country. Financial education is an effective tool for improving the level of financial literacy, especially in the adolescence and childhood period. In this research article, the authors from Vinh Long Campus of University of Economics Ho Chi Minh City (UEH Mekong) will provide more information to stakeholders on the level of financial literacy of high school students in the Mekong region, forming appropriate and effective educational policies and curricula to improve financial literacy for young people in Vietnam.

Research Background

In the context of globalization and economic integration, the level of financial literacy of adolescents and children in the world, including Asia, has not met the requirements yet. This situation can cause personal consequences listed as financial exhaustion and negatively affect financial stability and national economic growth. Recognizing the importance of financial literacy, in many countries around the world, financial education is implemented very early from a young age, and continuously through different levels of education. This approach helps students accumulate financial knowledge and builds personal financial management capacity to achieve financial independence as they grow up.

Vietnam, as one of the fastest-growing economies in ASEAN and among the top 40 largest economies in the world in terms of GDP, is facing challenges in terms of people’s financial literacy. Many studies indicate that financial education in Vietnam is currently fragmented, focusing on individual groups or only meeting specific needs in the short term.

Therefore, the research results will serve as a foundation for proposing appropriate policy implications contributing to improving the level of financial understanding for young people, especially students in high schools, therefore, it can contribute to the stable development of the financial market and sustainable economic growth in the future.

The reality of financial understanding of high school students in the Mekong Region

The Mekong Delta, with more than 450,000 students from more than 350 high schools, despite many favorable conditions, still needs comprehensive changes in education and training. Its high school completion rate remains low, only higher than that of the Central Highlands and the Northern Midlands and Mountains. In addition, access to banking and financial services is limited while informal credit is growing strongly, leading to instabilities in people’ lives. To successfully realize the National Financial Inclusion Strategy under Decision No. 149/QD-TTg, it is necessary to conduct comprehensive surveys on the level of financial literacy. These surveys assess the current situation and provide a basis for solutions suiting the characteristics of each target group and region.

In accordance with the research results, the authors have illustrated that the level of financial literacy of high school students in the Mekong Delta is being limited, with the majority of students achieving below-average levels of understanding. Compared to other developed countries, the level of financial literacy in this region is significantly lower. Notably, students highly appreciate practical and effective financial education methods, listed as those taught at school, in the family, and through practical experiences like part-time work or self-employment. These forms are considered important, accessible, and have a great impact on improving financial literacy for local students.

Factors affecting financial literacy among high school students in the Mekong region

The study found that students’ levels of financial literacy differ significantly based on their educational orientation and personal circumstances. Students who plan to pursue higher education, especially in economics, tend to have better financial literacy than those who plan to pursue engineering, talent, or no further education. This reflects their motivation and awareness of preparing financially for their long-term education.

Academic performance was also identified as an important factor, with students who performed well in their academic performance having better financial literacy. Although financial education has not become a separate and popular subject in the formal curriculum yet, the need for self-study and financial literacy showed a significant correlation with students’ financial literacy.

In addition, discussing financial issues in the family was considered an effective means to empower and to improve students’ financial awareness. The study highlighted the role of knowledge from parents, especially mothers, in positively influencing the financial management ability of young family members. This reinforces the view that improving women’s education is important to improve financial literacy of family members.

In particular, when financial literacy is integrated into formal subjects, the positive impact of teaching personal financial management in schools becomes clear. This not only supports students in raising awareness but also lays a solid foundation for future financial management capabilities.

Implications and policies inferred from the study

From the analysis results, the factors affecting financial education have been identified as having an important impact on improving students’ financial management knowledge and skills. Accordingly, the authors have proposed specific policies as follows:

First is to build a comprehensive financial education program framework: It is necessary to design a financial education program across all levels of education, with the goal of forming a solid financial knowledge foundation and healthy financial management habits for the younger generation from an early age.

Second is to diversify financial education forms: Organize financial education activities listed as competitions and seminars with rich and diverse methods and forms (online, dramatization, video design, etc.), suitable for the learning capacity of each level of education. Strengthen collaborations with universities, research institutes, and financial organizations to train and coach financial knowledge, and guide teachers in using technology to teach courses, hence helping teachers gain a deeper understanding of finance, effectively integrate financial knowledge into lectures, convey content in an engaging way, and encouring students to become active and effective users of financial knowledge.

Third is to incorporate financial education into family life: Encourage parents to implement financial education through discussions at appropriate ages and guide children on the importance of financial decisions as well as how to achieve financial balance and happiness.

Fourth is to make financial education an essential subject: Financial education needs to be formalized as an independent subject in schools, to help students develop sustainable financial management skills early, forming a foundation for responsible financial behaviors in the future. These suggestions not only aim to raise financial awareness for students but also promote the development of a young generation that is confident, proactive and capable of effective financial management.

The full-text research article on Financial Education: The Role of Stakeholders in the Mekong Region can be accessed HERE.

Authors: Doan Thi Thanh Hoa, Nguyen Thi Anh Ngoc, Truong Huynh Anh, Nguyen Thi Diem – University of Economics Ho Chi Minh City.

This article is part of a series spreading research and applied knowledge with the message “For a More Sustainable Mekong”, under the program “Research Contribution For All” implemented by UEH. UEH cordially invites readers to read the next UEH Research Insights newsletter.

News, photos: The authors, UEH Mekong Department of Admissions – Communications, UEH Department of Communications and Partnerships

Audio: Thanh Kieu