The Effect of Financial Literacy on Investment Decisions in the Capital Market for College Students

Authors

  • David Imanuel Welan Mahasiswa
  • Tinneke M Tumbel Business Adminstration Study Program
  • Joula Jety Rogahang Business Adminstration Study Program

DOI:

https://doi.org/10.35797/ejp.v5i4.58989

Keywords:

Investment Decision, Finansial Literacy, Stock Market

Abstract

Focusing on planning in investment decision-making enhances individual maturity and can also help reduce potential losses. It is important that investment decisions are based on strong financial knowledge or financial literacy to ensure clear and purposeful choices. Low literacy levels among the public, especially students who are expected to be agents of change, cause them to tend to believe and be trapped in illegal investments. This study aims to determine the effect of financial literacy on investment decisions in the capital market in college students. This study uses a number-based method or quantitative approach. The results showed that the financial literacy variable on investment decisions had good results. This can be seen in the significance value of 0.002. Financial literacy also plays an important role in shaping students' attitudes towards investment; students who have adequate knowledge about investment and a positive understanding of its benefits tend to have a more positive attitude towards investment.

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Published

2024-12-30

How to Cite

Welan, D. I., Tumbel, T. M., & Rogahang, J. J. (2024). The Effect of Financial Literacy on Investment Decisions in the Capital Market for College Students: . Productivity, 5(4), 997–1002. https://doi.org/10.35797/ejp.v5i4.58989

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