Navigating Financial Fragility in Emerging Economies: Insights into the Financial Behaviors and Well-Being of Generation Z in Vietnam

In the face of rising economic uncertainty, understanding the financial resilience of young adults in emerging markets is increasingly vital. This study investigates the financial fragility and well-being of Generation Z university students in Vietnam, offering new insights into how financial literacy, attitudes, and behaviors interact to shape their financial stability. Using a robust methodology grounded in the OECD/INFE framework and data from 337 valid responses, the study applies Partial Least Squares-SEM to analyze interrelated financial variables. The findings reveal that students with more proactive financial behaviors exhibit lower financial fragility, underscoring the importance of financial habits in navigating economic shocks. Interestingly, financial literacy alone does not guarantee financial well-being—highlighting a disconnect between knowledge and practice. Moreover, gender and income disparities influence students’ financial resilience, with female students reporting higher well-being scores despite widespread financial challenges. The study emphasizes that improving financial access—through targeted education, financial planning tools, and special programs such as scholarships and low-interest loans—can significantly enhance the economic agency of youth. These findings are especially pertinent for policymakers and institutions seeking to promote inclusive financial systems that equip future generations for entrepreneurial endeavors. By exploring the financial behaviors of Vietnam’s youth in an uncertain economy, this research contributes to the discourse on financing and financial inclusion, with implications for both personal development and broader entrepreneurial readiness.