A Study on Financial Literacy and Its Impact on Investment Decisions of Individual Investors

Financial literacy is important in shaping how people manage their finances and make investment decisions. As financial products and digital investment platforms grow rapidly, people need sufficient knowledge to manage their money effectively. This study examines how financially literate individual investors are and how this affects their investment choices, risk perceptions, and financial confidence. The research uses a descriptive design and gathers primary data from individual investors through a structured questionnaire. It applies statistical methods, such as percentage and correlation analyses, to examine the link between financial literacy and investment behavior. The results show that higher financial literacy leads to better decision-making, encourages diversification, improves risk assessment, and supports long-term financial planning. It offers insights for financial institutions, policymakers, and educators to create effective financial awareness programs that enhance individual investors\\\' decision-making skills.