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Journal of Finance & Economics Research - Volume 7, Issue 1 2022
By Foster Obeng-Manu
10.20547/jfer2207102
Keywords: Economics students, investment decision, financial literacy, university of education.
The study investigated the effect of financial literacy on investment decisions among economics students in UEW. Overall, by adopting stratified sampling, 100 economics students were recruited for the study. To collect data closed-ended questionnaire was personally administered to the sampled students in the study area on the grounds of high anonymity and confidentiality. Data collected from respondents were analysed using SPSS. Findings from the binary logistic analysis shows that an increase in age of respondent (student) is likely to increase probability to invest. The probability of increment is 11.4% and it is significant at 5% significance level. Again, a respondent with higher level of education is likely to increase investment decision. The probability of increment was 11.8% and significant at a 5% level of significance. Similarly, increase in the level of income is likely to increase investment decisions. The associated probability of increase was 14.4% and it is also significant at a 5% level of significance. That is UEW economics students were willing to increase investment when income increases. Finally, the study found that increasing knowledge on interest rate is likely to increase investment decision. The probability of increment was 22.8% and it is significant at 5% significance level. Based on the findings, the study recommends extensive public education to sensitize individuals especially students on numerous investment products to invest. Again, stakeholders are entreated to increase the student loan allowance as well as scholarships avenues to raise and sustain students' standard of living within an academic year. The study also calls on parents of students to increase students' allowance in an academic year.
Submission Date: 30 Sep, 2021 Reviews Completed: 16 Dec, 2021Acceptance Date: 23 Dec, 2021 Publication Date: 30 Dec, 2021