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Stream/Area:
-
Subject:
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Paper ID:
IJSREM67829
Volume:
10 |
10 |
Oct 2026
Pages:
1-14
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Bachelor of Business Administration
K.L University
Department of Bachelor of Business Administration
K.L University
Financial literacy is generally considered to be a basis for wise investment, but increased access to digital financial services does not guarantee that young people know the products that they use. This paper investigates the relationship between financial literacy and investment behaviour among young adults (Gen Z and Millennials) and tests whether investor confidence mediates that relationship. Primary data were collected using an online structured questionnaire of 45 items (five demographic questions and 40 five-point Likert statements). Twenty-two responses were obtained and 21 were usable. Cronbach's alpha was above .80 for all three core scales. Using Microsoft Excel, the data were analysed using chi-square tests of independence, one-way ANOVA and linear regression, including a Baron and Kenny mediation analysis with a Sobel test. Financial literacy was strongly and positively related to investment behaviour (β = .79, R² = .62) and to investor confidence (β = .71), and investor confidence was strongly related to investment behaviour (β = .86). Confidence partially mediated the literacy–behaviour link (indirect effect = 0.396, Sobel z = 2.95, p = .003), accounting for about 53% of the total effect. Gender, income, education and work experience did not differ significantly in any ANOVA and were not significant predictors in the multiple regression, although women were more likely than men to fall in the high-literacy group (χ² = 5.74, p = .017). Because only one of the 21 respondents was a Millennial, the generational comparison could not be tested statistically, and the findings are exploratory and chiefly describe Gen Z. The results suggest that financial education should build not just knowledge but also well-founded confidence.
KEYWORDS
This study explored how financial literacy relates to investment behaviour among young adults and whether investor confidence explains that relationship. Using chi-square tests, one-way ANOVA and regression in Microsoft Excel, it found that financial literacy is strongly and positively related to both investor confidence and investment behaviour, that confidence is the strongest correlate of investment behaviour, and that confidence partially mediates the effect of literacy, accounting for just over half of it. Gender, income, education and work experience showed no significant differences across groups and added little to the explanation of investment behaviour. The principal limitation is the very small sample, which contains only one Millennial respondent, so the comparison between Gen Z and Millennials remains to be carried out. Even so, the results indicate that efforts to improve young people’s investment behaviour should strengthen financial knowledge together with the well-founded confidence to apply it.
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Publication Date
10/12/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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