Financial Literacy Programs and Behavioral Shift in Investment Decisions among Youth and Community Groups
Ajaz Ahmad Bhat
ABSTRACT
This paper studies how practical financial literacy workshops help young people and community members change how they save and invest their money. Most people in regional areas keep their savings in low-return options like cash or traditional bank deposits due to fear of loss and lack of confidence. Using a simple before-and-after survey model with 380 participants, this study measures changes in financial knowledge, confidence, risk perception, and real investment choices. Statistical testing and Structural Equation Modeling (SEM) show that practical financial education greatly improves financial understanding (t = 18.62, p < 0.001) and boosts confidence (t = 15.41, p < 0.001). As a result, participants moved 34.20% of their money from basic bank savings into growth options like mutual fund Systematic Investment Plans (SIPs) and stock markets. The SEM model proves that building confidence acts as a strong bridge connecting knowledge to real-life financial choices.
