Evaluating The Impact of Financial Literacy Programs on Investment Behaviours: A Survey Study

Abstract

In the face of increasingly complex financial markets, the role of financial literacy in guiding investment decisions has never been more critical, especially in burgeoning economies like India. This study delves into the transformative power of financial literacy programs, evaluating their effectiveness in altering and improving individual investment behaviors. The research pivots around two fundamental questions: "To what extent do financial literacy programs affect individual investment decisions?" and "Do these programs foster more informed and rational investment behaviors?" The hypothesis — that financial literacy programs significantly influence investment behavior, prompting more informed and rational decisions — was formulated in response to a noticeable literature gap concerning empirical evidence of behavioral change post-financial education in the Indian context. Adopting a quantitative research design, this study employed a survey methodology, encompassing a diverse demographic to ensure a comprehensive analysis. The survey assessed participants' financial knowledge and investment strategies before and after attending financial literacy programs. The results were telling; participants demonstrated a significant shift towards regular, diversified investment practices, a reduced reliance on informal advice, and an increased confidence in financial decision-making post-program. The study conclusively supports the hypothesis, highlighting the critical role of financial literacy in shaping prudent investment behavior. These findings have profound implications for individuals, policymakers, and educators, underscoring the need for widespread, effective financial education. The research advocates for the integration of financial literacy in school curriculums, the regulation of financial information, and the tailoring of programs to cultural nuances. Ultimately, the study posits financial literacy not merely as an educational outcome but as a catalyst for economic empowerment and societal prosperity.