Analysis of the Influence of Financial Literacy and Financial Planning on Investment Decisions of the Millennial Generation
Keywords:
Financial Literacy, Financial Planning, Investment Decisions, Millennials, Personal FinanceAbstract
This study aims to examine the influence of financial literacy and financial planning on investment decisions among the millennial generation. The rapid growth of financial technology has created new investment opportunities, yet many millennials still struggle to make informed and rational financial choices. Using a quantitative research approach, data were collected from 150 respondents aged 20–35 years through an online questionnaire distributed via digital platforms. The variables of financial literacy, financial planning, and investment decisions were measured using a Likert-scale instrument. Data were analyzed using multiple linear regression to determine the extent to which financial literacy and financial planning affect investment behavior. The findings reveal that financial literacy has a significant positive effect on investment decisions, indicating that individuals with better financial knowledge tend to make wiser and more confident investment choices. Financial planning also shows a strong influence by helping individuals set clear goals and manage risks effectively. The study concludes that enhancing financial education and encouraging structured financial planning are essential strategies to improve millennials’ financial decision-making skills, thereby supporting sustainable personal financial growth and contributing to economic stability.
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