Psychological determinants of individual saving behavior : The influence of risk tolerance and risk perception - The case of Vietnam

Abstract

This research aims to explain the psychological determinants of individuals saving behavior focusing on financial risk tolerance, and risk perception. Data are collected using survey questionnaires (online and offline) with utilized convenience sample of working people (N=347). Structural Equation Modelling (SEM) is used to test the proposed model. Result shows that there is the positive relationship between financial knowledge and financial risk tolerance. Both the influence of financial risk tolerance on risk perception and perceived barriers to saving are negative. While perceived barriers to saving associated negatively with self-reported saving behavior, risk perception associated positively with self-reported saving behavior.