Authors: Assistant Professor Dr. R.S.Gupta
Abstract: Financial literacy can help individuals understand financial products, assess risk, compare costs and make informed saving and investment choices. This conceptual review examines the relationship between financial knowledge and investment decision-making among young adults in India. It considers budgeting, inflation, compounding, diversification, risk tolerance, digital access and behavioural influences. Drawing on established financial-literacy research and public financial-education resources, the paper argues that knowledge is important but may not be sufficient: confidence, social influence, access to trustworthy advice and behavioural biases also shape decisions. The paper recommends practical financial education, transparent product disclosures and stronger evaluation of financial-literacy programmes. It uses secondary literature and does not report original survey findings.
