Financial literacy among young adults in India: An analytical study

Abstract

In today’s world knowledge of financial literacy has become a basic and fundamental skill for people to effectively manage their personal finances and make informed investment decisions. However, despite the increasing availability of financial products and investment opportunities, studies indicate that a significant percentage of young adults lack of the basic knowledge of to make well-informed financial choices. Main purpose of conducting this study are: Impact on investment decisions of financially literate young Adults, to evaluate the level of financial literacy among young adults, to examine the investment preferences of young adults, to identify the challenges young adults face in making investment decisions, to provide recommendations for enhancing literacy of finance among young adults. The collected data has been analyzed with statistical tools, tables and graphs. The finding of this research paper is that there is positive relationship between investment decision and Financial literacy among young adults. The findings reveal a considerable gap in structured financial education. Although young adults display willingness to invest, their decisions are often influenced by informal, sometimes unreliable, sources. Moreover, behavioural biases like risk aversion and herd mentality further hinder informed investing. Thus, improving financial literacy through formal education and targeted financial programs is essential for enabling responsible investment habits among the youth. Doing so will not only promote individual financial well-being but also strengthen the broader financial system. Some recommendation suggested that, formalize financial Literacy Education, Launch Youth-Centric Financial Literacy Campaigns, Promote Reliable Financial Resources, Include Practical Learning Models.