ISSN : 3049-1754 (PRINT) ISSN : 3048-8966 (ONLINE)
IMPACT OF FINANCIAL LITERACY ON SAVINGS AND INVESTMENT DECISIONS ACROSS GENERATIONS X, Y, Z
Dr. K V N Lakshmi, Pulkit Bothra , Sakshi Baheti & Darshan Jain N
Affiliations:
Asst. Professor, Christ (Deemed to be University), Bengaluru
Student, Christ (Deemed to be University), Bengaluru
Student, Christ (Deemed to be University), Bengaluru
Student, Christ (Deemed to be University), Bengaluru
Abstract:
This paper looks at the effects of financial literacy on savings and investment decisions for generations X, Y, and Z. The study attempts to look at the factors influencing financial knowledge, attitudes, and behavior in a decision-making process based on the variables: demographics - age, gender, education, and income. Using a stratified random sample, the data was collected from around 200 respondents selected from an urban, semi-urban, and rural setup. The variables to be used include the level of financial literacy, investment preferences, and motivations for investing. The findings also present generational differences in their motivation to invest: Generations Y and Z mainly focus on risk and return, while Generation X focuses on security. Wealth creation was also ranked as the main reason for investment; emergency needs ranked second. Financial literacy also influences investment in equities, as literate persons are 125 times more likely to have equity investments than their counterparts.
Keywords:
Financial Literacy, Saving Patterns, Financial Instruments, Generations X, Y, Z, Investment Preference
Publishing Chronology:
Received - 24/03/2025
Revised - 26/07/2025
Accepted - 30/7/2025
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