Impact of Financial Literacy on Investment Decisions

Abstract

This study investigates the relationship between financial literacy and investment decisions among individual investors. Using a survey-based methodology, the research explores how varying levels of financial knowledge influence the investment choices made by individuals across different demographic groups. The findings highlight the critical role of financial literacy in fostering informed investment decisions and underscore the need for enhanced financial education programs. Individuals with higher financial literacy are shown to make more diversified and sophisticated investment decisions, while those with lower literacy levels tend to prefer safer, lower-risk options. The study emphasizes the importance of targeted financial education to improve financial outcomes and promote economic stability.