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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM55821
Volume:
10 |
1 |
Jan 2026
Pages:
1-13
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.
GRADUATE ANALYST
BARCLAYS BANK, CHENNAI
Financial literacy plays an important role in shaping the financial decision-making and investment behaviour of young adults. With the increasing availability of digital financial services and diverse investment avenues, young investors need adequate financial knowledge to evaluate risk, return, and investment alternatives effectively. The present study examines financial literacy and investment behaviour among young adults in Chennai City. The study adopts a descriptive and analytical research design and is based on primary data collected from 120 young adults in Chennai City using a structured questionnaire. Respondents were selected through simple random sampling. The collected data were analysed using descriptive statistics, Pearson correlation, Chi-square test, and multiple regression analysis to assess financial literacy, investment behaviour, the relationship between financial literacy and investment behaviour, and the factors influencing investment decisions. The findings indicate that young adults possess a relatively good level of financial literacy, although differences exist in their understanding of specific investment concepts such as risk, diversification, and stock-market investments. The analysis further indicates a positive relationship between financial literacy and investment behaviour, suggesting that greater financial knowledge is associated with more informed investment practices. The regression analysis also indicates that financial literacy, risk perception, financial attitude, and investment experience are important factors influencing investment decisions. The study concludes that strengthening financial education and investment awareness among young adults can encourage responsible investment behaviour, improve financial decision-making, and contribute to long-term financial well-being.
KEYWORDS
The study concludes that financial literacy plays an important role in shaping the investment behaviour and financial decision-making of young adults. The study indicates that young adults have a reasonable understanding of basic financial concepts, although gaps remain in areas such as investment risk, diversification, and stock-market knowledge. The analysis further indicates a positive relationship between financial literacy and investment behaviour, suggesting that individuals with better financial knowledge are more likely to make informed investment decisions. The study also highlights that factors such as risk perception, financial attitude, and investment experience influence investment decisions. Therefore, improving financial literacy among young adults through practical financial education, investor-awareness programmes, and reliable financial information can encourage responsible investment practices and contribute to better long-term financial well-being. Overall, the study emphasises the need for greater financial awareness among young adults in Chennai City so that they can effectively evaluate investment alternatives, manage financial risks, and make informed decisions according to their financial goals.
Ambuli T.V. (2022), A Study on Financial Literacy among Youngsters in Chennai City, The journal of contemporary issues in business and government, Archives / Vol. 28 No. 4 (2022). Ambika Nayyar (2020), A Study of Relationship between Financial Literacy and Investment Behaviour, Think India Journal ISSN: 0971-1260 Vol-22, Special Issue-21 National Conference on Recent Advances in Commerce, Management and Computer Science (NRCACMC-2020) P a g e 649. Mandell, L. & Klein, L. S. (2009). The Impact of Financial Literacy Education on Subsequent Financial Behaviour. Journal of Financial Counselling and Planning, Vol. 20, Issue 1. Nurul Shahnaz Mahdzan & Tabiani, S. (2013). The empact of financial leteracy on individual saving: an exploratory study in the Malasiyan context. Transformation in Business & Economics, 12(1), 41-55. Peng, T. C., Bartholomae, S., Fox, J. & Cravener, G. (2007). The Impact of Personal Finance Education Delivered in High School and College Courses. Journal of Famoly and Economic Issues, Vol. 28, Issue 2, pp. 265-284. Sobhesh Kumar Agarwalla, et,al., (2015), Financial Literacy among Working Young in Urban India, World Development, Volume 67, March 2015, Pages 101-109.
Publication Date
1/27/2026
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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