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Benefits: Journal of Economics and TourismBenefits: Journal of Economics and Tourism

Indonesians interest in investing has increased significantly in recent years. However, the lack of a national financial literacy level that has not yet reached 50% raises concerns about the quality of investment decisions, especially among teenagers. This research examines the relationship between financial literacy and investment decisions based on previous studies. The authors used a literature study approach, analyzing 17 relevant scientific articles published from 2020 to 2024. The results showed that most studies found a positive and significant relationship between financial literacy and the quality of investment decisions. Individuals who are highly financially literate tend to make investment decisions that are rational varied, and in line with their long-term financial goals.

The majority of research indicates a positive and significant correlation between financial literacy and investment decisions.Individuals with adequate financial literacy tend to make more rational and structured investment decisions.However, some studies suggest that financial literacy does not always significantly influence investment decisions, as other factors like risk tolerance and psychological aspects also play a role.

Further research should explore the specific financial literacy components most impactful on investment decisions, moving beyond general literacy levels. Additionally, studies could investigate the role of behavioral economics in mediating the relationship between financial literacy and investment choices, particularly regarding risk aversion and emotional biases. Finally, research is needed to evaluate the effectiveness of different financial education interventions tailored to specific demographic groups, such as young adults and those with limited financial experience, to determine best practices for improving investment outcomes. These investigations should consider the increasing influence of digital financial platforms and the potential for technology-driven solutions to enhance financial literacy and promote responsible investing, ultimately contributing to a more informed and resilient investor base in Indonesia. A comprehensive understanding of these factors will be crucial for developing targeted policies and programs that foster financial well-being and sustainable economic growth.

  1. The Effect Of Financial Literacy, Overconfidence, And Risk Tolerance On Investment Decision | Journal... doi.org/10.33005/ebgc.v4i1.172The Effect Of Financial Literacy Overconfidence And Risk Tolerance On Investment Decision Journal doi 10 33005 ebgc v4i1 172
  2. Literasi Keuangan dan Uang Saku Sebagai Keputusan Berinvestasi: Perilaku Keuangan | Jurnal Akuntansi... ejurnal.umri.ac.id/index.php/jae/article/view/4783Literasi Keuangan dan Uang Saku Sebagai Keputusan Berinvestasi Perilaku Keuangan Jurnal Akuntansi ejurnal umri ac index php jae article view 4783
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