The Impact of Financial Literacy, Financial Behavior and Income on Investment Decision among Young Omanis

Abstract

There are many and related financial factors. Thus, how financial literacy and financial behavior and income affect the investment decisions of young Omanis are an important subject to be discussed. The independence is based on investment which leads to the growth of finances and stability of future. Investment however needs other necessary factors to make it effective. Financial literacy is an essential element that improves the level of an individual and makes him sail through the world and make the right decisions according to the correct financial tools. This, on the other hand, makes them able to make informed and error-free investments. Financial literacy of young Omani helps them to perceive every facet of life in a financial sense. Financial behavior involves the way people spend/savings and other financial aspects of their income. It is also a core element to successful and risk-averse investments since the provision of control of their actions gives people the financial freedom. The most useful financial aspect that facilitates investment is income which dictates the kind and magnitude of investment that an individual can make. Income is the most important element among the three elements discussed in this study. In addition, to support the study, data was collected through quantitative research methods, which is conducting a questionnaire to gather opinions on the impact of financial literacy, financial behavior, and income on the investment decisions of Omani youth. It was concluded that financial literacy, financial behavior, and income directly affect the investment decisions of Omani youth, as the availability of these elements in the responses enables them to choose investments in the best way. Omani youth, as observed through the data, still lack all of these elements, meaning there is a limitation in each element. Therefore, this means the urgent need to include all of these elements and incorporate them into the lifestyle of every individual in the youth category in order to achieve economic growth and prosperity and make investments for Omani youth successful and risk-free.