“Exploring How Financial Literacy Affects University Students' Sustainable Investment Decisions”

Abstract

This research paper explores the critical role of financial literacy in shaping sustainable investment decisions among university students. Through a comprehensive review of existing literature, the researcher identifies financial literacy as a key factor influencing students' ability to engage in informed, eco-friendly investments. However, barriers such as limited awareness of green financial products, perceived risks, and the complexity of sustainable investments persist, despite financial education’s positive impact. The study also highlights gaps in current financial literacy programs, noting that they often lack the specialised content needed to promote sustainability-focused investment behaviours. The researcher advocates for enhancements in financial education curricula to better address the growing importance of sustainable investing. Recommendations include integrating targeted lessons on sustainable finance and offering practical tools to encourage eco-friendly investment options. The paper underscores the need for future empirical studies to provide deeper insights into the long-term impact of financial literacy on sustainable investment behaviours, establishing a foundation for curriculum improvements and future research in the field of sustainable finance.