Understanding Financial Literacy And Risk Tolerance: An Empirical Study On Millennials

Abstract

In today's era, individuals are increasingly concerned about their personal finances, recognizing that these finances shape their future financial stability. It is crucial to be well-educated about financial management and one's capacity for risk-taking in order to make informed financial decisions. With the millennial generation facing unique economic challenges and being exposed to a rapidly changing financial landscape, understanding their financial literacy levels and risk-taking behavior is crucial. This study aims to investigate the relationship between financial literacy and risk tolerance among millennials. The work utilizes a comprehensive approach, combining quantitative analysis and qualitative insights to provide a holistic understanding of the topic. The findings of this research contribute to the existing body of knowledge on financial literacy and risk tolerance and offer valuable insights for policymakers, educators, and financial institutions in developing effective strategies to enhance financial literacy and support millennials in making informed financial decisions.