The Impact of Financial Literacy on Investment Decisions: A Comparative Study Across Different Age Groups

Financial literacy plays a vital role in shaping investment decisions, which affect people's financial wellbeing and economic stability. This study investigates the implications of financial literacy on investmentdecisions across age groups to determine how different degrees of financial knowledge influenceinvestment preferences, risk tolerance, and financial planning techniques. The study takes a comparativeapproach, examining differences in investment behaviour across young adults, middle-aged people, andretirees.A standardized questionnaire was created to measure financial literacy, investing awareness, and decisionmaking behaviours. The poll gathered responses from people from various demographic backgrounds,concentrating on crucial topics such as financial education, investing confidence, preferred financialinstruments, and problems encountered while making investment decisions. Statistical methods such asANOVA and t-tests were used to investigate significant differences across age groups.Preliminary data indicate that greater knowledge of finances is associated with more diverse investmentportfolios, improved decision-making confidence, and increased involvement in stock markets. Youngerpeople use digital financial platforms and are more interested in alternative assets like cryptocurrencies,while older generations prefer traditional options like fixed deposits and real estate. The study also findsthat a lack of financial awareness remains a significant barrier to investment involvement, particularlyamong low-income individuals.The study emphasizes the importance of tailored financial literacy programs for bridging knowledge gapsand promoting informed investing decisions across all ages. Improving financial education can lead toincreased financial stability and economic growth by ensuring that people make informed decisions thatare in line with their financial goals. Future research may look at the role of technical improvements andbehavioural finance in altering investing decisions further.