Financial literacy and investment decision-making among state government employees in Sikkim: an empirical assessment

This study seeks to assess the level of financial literacy among Sikkim state government employees, focusing on the relationship between financial knowledge, attitude, and behaviour, as well as the impact of socioeconomic factors. The study included 441 state government employees chosen through purposive sampling in a cross- sectional survey design. The findings revealed that employees’ financial literacy ranges from low to moderate, with age, gender, income, education, and marital status serving as significant determinants. The significant positive correlation values between financial knowledge, financial attitude, and financial behaviour lent support to the proposed framework of knowledge, attitude, and behaviour. Furthermore, the study examined the role of financial literacy in shaping investment decisions and found that higher financial literacy significantly enhances employees’ ability to make informed, rational, and confident investment choices. These findings highlight the importance of comprehensive financial education initiatives that strengthen financial knowledge, promote positive attitudes, and encourage responsible behaviour, ultimately improving investment decision-making and contributing to employees’ long-term financial well-being.