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Proceedings / International Conference on Intelligent Engineering & Future Technologies (ICIEFT-2026) / Paper

Impact of Financial Literacy on Investment Decisions and Long-Term Financial Stability

Sachin Vishwakarma
pp. 20-33

Abstract

This study examines the impact of financial literacy on investment decisions and long-term financial stability in the modern digital financial environment. With the increasing complexity of financial markets, investment alternatives, and digital financial platforms, individuals often face difficulties in making informed and rational financial decisions. Financial literacy provides the essential knowledge and skills required to understand financial concepts, manage risks, evaluate investment opportunities, and plan for future financial security.
The study aims to analyze how financial literacy influences investment decision-making and contributes to long-term financial stability among individuals. A quantitative research approach was adopted, and primary data were collected through a structured questionnaire from 115 respondents belonging to different occupational and educational backgrounds. Statistical tools such as ANOVA and regression analysis were applied using SPSS software to examine the relationship between the variables.
The findings reveal that financial literacy has a significant positive impact on investment decision-making and long-term financial stability. Financially literate individuals are more likely to make rational investment choices, maintain regular savings, manage financial risks effectively, and achieve financial security. The study also emphasizes the importance of integrating financial education into academic curricula and public awareness programmes. Enhancing financial literacy can improve financial well-being, encourage responsible financial behaviour, and contribute to a stable and sustainable economic system for individuals and society.

Keywords

Financial Literacy, Investment Decision-Making, Financial Stability, Financial Behaviour, Digital Financial Environment, Investment Awareness, Financial Education, Risk Management, Savings Behaviour, Financial Planning.

Cite This Paper

Sachin Vishwakarma, "Impact of Financial Literacy on Investment Decisions and Long-Term Financial Stability," in International Conference on Intelligent Engineering & Future Technologies (ICIEFT-2026), pp. 20-33.

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