THE IMPACT OF FINANCIAL LITERACY ON PERSONAL INVESTMENT DECISION-MAKING: COMPARATIVE STUDY OF MANAGEMENT AND NON-MANAGEMENT UNDERGRADUATE AT RAJARATA UNIVERSITY OF SRI LANKA
Welivita, W. M. R. C. K.1* and Kumari, J. S.2
1,2Department of Accountancy and Finance, Faculty of Management Studies
Rajarata University, Sri Lanka
1 ac2020414@mgt.rjt.ac.lk
ABSTRACT
The purpose of this study is to examine the impact of financial literacy on the personal investment decision-making of management and non-management undergraduates at Rajarata University of Sri Lanka. The study also focuses on the difference in financial literacy levels between management and non-management undergraduates and between the various demographic factors. A random sample of 367 undergraduates from both management and non-management fields filled out a survey-based questionnaire. According to the analysis, financial literacy and the study’s dimensions, financial knowledge, financial skills, financial attitudes, and financial behavior have a major and favorable influence on undergraduates’ personal investment decision-making. Further, it found that there is a significant difference between the financial literacy level of management and non-management undergraduates; financial literacy is higher among management undergraduates than non-management undergraduates. Demographic factors such as gender, residence, academic year, and working experience were found to have no different impact on financial literacy. In contrast, only other educational qualifications have a significant impact on financial literacy. The study emphasizes how crucial financial literacy is in influencing investment choices and improving undergraduates’ financial well-being since They will have high impact on the investment market in the future and the whole economy of the country. The differences in financial literacy levels between management and non-management undergraduates may help us understand the level of financial literacy among undergraduates. This study may also show why focused financial education programs are needed, especially for non-management students, to help them make better investment decisions. Additionally, it could inform policy recommendations for incorporating financial literacy into the university curriculum, promoting better financial decision-making among the youth in Sri Lanka.
Keywords: Financial Attitude, Financial Knowledge, Financial Skills, Financial Behavior, Personal Investment Decision-making
