Research purpose: The main purpose of this research is to examine the behavioral and cognitive factors that determine the personal financial investment behavior of Vietnamese university students. Specifically, the study focuses on three important psychological factors: Fear of Missing Out (FOMO), Financial Knowledge, and Impulsivity. While FOMO is the fear of missing out on opportunities, Financial Knowledge captures the cognitive ability to process financial information, and Impulsivity reflects the psychological tendency to act without careful consideration. In addition to these key factors, the study also examines the role of demographic characteristics such as age, gender, income, and field of study to determine whether they significantly influence students’ investment decisions. By analyzing these factors in combinationThe research aims to offer a thorough understanding of the investment practices employed by young and novice investors in the current context.
Research motivation: The motivation behind this study stems from both practical and theoretical considerations. In recent years, Vietnam has experienced rapid economic growth and financial market expansion, leading to increased participation by individual investors, including university students. Young investors are often highly active on digital platforms and exposed to real-time financial information, making them susceptible to psychological factors such as FOMO. At the same time, students’ financial literacy remains relatively low, and impulsive behavior may further undermine rational decision-making. While behavioral finance research has extensively explored these factors in developed economies, it has paid limited attention to emerging markets, especially in Southeast Asia. Therefore, this study was motivated by the need to fill this gap and contribute to the behavioral finance literature by focusing on a sample of Vietnamese university students.
Research design, approach, and method: A quantitative research design was selected for this study. Data were gathered via a structured web-based questionnaire distributed in 2025. The survey targeted university students of different majors and years of study, resulting in 176 valid responses, targeting university students using purposive sampling. The questionnaire was designed using validated scales from previous studies: the financial literacy scale developed by Chen and Volpe (1998), the FOMO scale proposed by Przybylski et al. (2013), and the Barratt Impulsivity Scale (Barratt, 1965; Patton et al., 1995). Personal financial investment behavior was measured using items adapted from Johan Mattsson. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), a powerful multivariate technique suitable for small to medium sample sizes and exploratory research settings.
Main findings: The analysis revealed several key findings. First, FOMO was found to have a significant positive influence on students’ financial investment behavior, indicating that emotional pressure and the fear of missing opportunities drive students to participate in financial markets more actively. Second, financial knowledge showed a significant negative effect on investment behavior, suggesting that students with higher financial literacy tend to be more cautious and less likely to engage in risky or impulsive investment activities. This unexpected outcome may reflect the context of Vietnam, where awareness of financial risks discourages participation rather than encouraging it. Third, impulsiveness did not have a significant effect on investment behavior, which implies that young Vietnamese students may not act as rashly as expected in financial decisions, possibly due to limited resources and a cautious cultural approach. Finally, demographic factors such as gender, age, and income were not found to significantly influence investment behavior, highlighting that investment decisions in this age group are more strongly shaped by psychological and cognitive factors than by demographic characteristics. Overall, the model explains 12.1% of the variance in personal financial investment behavior.
Practical/managerial implications: The findings of this study provide important implications for educators, policymakers, and financial institutions. From an educational perspective, the results underline the need for financial education programs that not only improve financial knowledge but also address psychological drivers of investment behavior, such as FOMO. For policymakers, the findings suggest that initiatives to promote financial literacy should be complemented by awareness campaigns on behavioral biases, enabling young investors to balance rational analysis with emotional control. For financial institutions, understanding the dual role of financial knowledge and emotional factors is crucial for designing investment products and advisory services tailored to young investors. Specifically, banks, securities firms, and fintech platforms should provide tools and educational resources that help students manage emotional impulses while making informed investment decisions. In the long run, strengthening the financial capability of students will not only improve individual welfare but also contribute to the sustainable development of Vietnam’s financial markets.