Financial Literacy and its impact on Investment Decision Among College Students

Since the inception of technology, financial literacy has increasingly impacted peoples' lives and the decisions made regarding all aspects of personal finances. Therefore, individuals must have an understanding of finance so they can effectively manage their finances and make the best financial choices. The purpose of this research was to explore the connection between financial literacy rates and college aged students' investment decision making processes. Specifically, the study focused on the correlation between the financial literacy level of a student and their investment decision making process. The results of this study showed that students with higher levels of financial literacy made more informed and //systematic/semi-systematic investment decisions than students who did not have a strong knowledge of financial principles. The acquisition of financial literacy also increased a student's ability //or competence to save money, comprehend investment opportunities and analyse financial risk. This study also shows that there is a positive relationship between financial literacy and students' ability to budget, investment plan, and confidence when making an investment decision. Students who are familiar with basic financial concepts are more likely to invest in stocks compared to other types of investments because they perform comprehensive comparisons of all possible investment options before investing. Finally, the students' educational background is significant when measuring their financial literacy level. The research showed that the educational background of a student can be a major factor in their awareness of finance. In general, students who take classes in commerce or management tend to have a greater understanding of finance than students who do not take any classes related to these subjects. The research also found an increased influence from Social Media, online platforms, and family members on how young investors behave. Poor decisions may be caused by relying on incomplete or inaccurate information from the internet. Therefore, a strong financial education should be given to all students. Overall, the study's findings support the alternate hypothesis that financial literacy plays an important role in determining investment decisions made by college students. Furthermore, the findings indicate that it is essential that colleges provide adequate financial literacy education to enable graduates to become financially responsible and capable of making wise investment decisions and developing sound financial plans.

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