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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM66650
Volume:
10 |
8 |
Aug 2026
Pages:
1--
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 MBA & Research Centre
Surana college (Autonomous)
Department of MBA & Research Centre
Surana college (Autonomous)
Financial literacy is increasingly regarded as a critical determinant of sound financial behaviour, particularly among young adults who are beginning to earn, save and invest independently in a fast-evolving digital financial ecosystem. This study examines (i) the relationship between financial literacy and saving and investment decisions, and (ii) the influence of behavioural and psychological factors on saving and investment decisions among individuals below the age of 30 in Bangalore. A quantitative, descriptive research design was adopted, and primary data were collected from 252 respondents through a structured, five-point Likert questionnaire administered using convenience sampling. The reliability of the instrument was confirmed using Cronbach's Alpha (0.826), indicating good internal consistency. Data were analysed using Pearson's correlation and multiple linear regression. The results reveal a strong, statistically significant positive relationship between financial literacy and saving and investment decisions (r = 0.7309, p < 0.001), and a statistically significant positive effect of behavioural and psychological factors on saving and investment decisions, explaining 79.23% of the variance (R² = 0.7923, F(1,250) = 953.60, p < 0.001). The findings underscore that both cognitive financial knowledge and behavioural-psychological disposition are pivotal, complementary drivers of sound financial decision-making among financially engaged urban youth.
KEYWORDS
This study examined how financial literacy and behavioural and psychological factors jointly shape saving and investment decisions among 252 individuals below 30 years of age in Bangalore. Financial literacy was found to have a strong, statistically significant positive relationship with saving and investment decisions (r = 0.7309, p < 0.001), while behavioural and psychological factors significantly and positively predicted saving and investment decisions, explaining nearly 80% of the variance (R² = 0.7923, p < 0.001). The study concludes that strengthening financial education while simultaneously addressing behavioural biases represents a complementary, twin-track strategy for promoting sound financial decision-making among technologically engaged young adults.
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Publication Date
8/10/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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