The influence of financial literacy on investment patterns among young adults in Bangladesh

Abstract

This thesis studies the impact of financial literacy on investment behavior of young adults in Bangladesh. It adopts a mixed-method approach, gathering primary data through a survey of young adults (18–32 years old) who live in urban and semi-urban areas in Bangladesh. The survey examined finances, investment desires, risk tolerance and confidence in decision-making. Some secondary data from academic literature and reports are also used for better understanding of investment behavior. The findings suggest that while financial literacy improves confidence in financial decision-making, it does not eliminate the preference for lower-risk investments such as gold and fixed deposits. They showed that financial education programs led to a great increased among individuals for making better decisions financially. The study recommends adding financial literacy to education curriculum and provide more educational opportunities to provide better diversified investments that can potentially lead to better financial independence and economic growth of young adults.