The Relationship Between Financial Literacy and Investment Decision-Making Among Young Adults

Shivang Chand

Abstract: This study examines the relationship between financial literacy and investment decision-making among young adults aged 18-35. With increasing financial complexity and responsibility, young adults must navigate investment choices that significantly impact their financial well-being. The research investigates how financial knowledge, attitudes, and skills influence investment decisions, using a mixed-methods approach combining surveys and interviews. Findings reveal that higher financial literacy correlates with better investment decisions, increased risk awareness, and stronger long-term planning. Socio-demographic factors like education level, income, and financial socialization further moderate this relationship. Implications highlight the importance of early financial education initiatives and targeted financial literacy programs to enhance investment outcomes among young adults.

Keywords: Financial Literacy, Investment Decision-Making, Young Adults, Financial Behavior, Risk Perception, Financial Education

How to Cite?: Shivang Chand, "The Relationship Between Financial Literacy and Investment Decision-Making Among Young Adults", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 1359-1360, https://www.ijsr.net/getabstract.php?paperid=SR251231160054, DOI: https://dx.doi.org/10.21275/SR251231160054