A STUDY ON THE IMPACT OF FINANCIAL LITERACY ON INVESTMENT DECISIONS AMONG COLLEGE STUDENTS

Financial literacy has emerged as an essential competency in modern economies where individuals are increasingly responsible for managing their personal finances and investment decisions. Among young adults, particularly college students, financial knowledge plays a crucial role in shaping saving behavior, risk perception, and investment planning. Despite the increasing availability of financial products and digital investment platforms, many students lack adequate financial literacy to make informed financial decisions. This study investigates the impact of financial literacy on investment decision-making among college students. The primary objective of the research is to examine the relationship between financial knowledge and investment behavior and to analyze how financial awareness influences students’ investment choices. The study adopts a quantitative research design using structured questionnaire-based data collected from college students. Statistical techniques such as correlation and regression analysis are used to examine the relationship between financial literacy and investment decisions. Hypothetical findings suggest that students with higher financial literacy demonstrate greater confidence in investment decisions and are more likely to engage in diversified financial investments such as mutual funds, equities, and systematic investment plans. The study contributes to the existing literature by highlighting the importance of financial education among youth and provides insights for policymakers, educational institutions, and financial educators to design effective financial literacy programs that can promote responsible investment behavior among young investors.