The Role of Financial Literacy on Enhancing Expected Utility in Investment Decisions Among Young Professionals
Financial literacy is essential for young professionals to make better investment decisions. The seminar workshop on financial literacy was used to equip young professionals with skills to understand various investments and its risk—most research dwells on measuring, comparing, and formulating policies on financial literacy. Only a few studies focus on an effective intervention measure, such as a seminar workshop on financial literacy to improve investment decisions. This study aims to determine the significant role of financial literacy in enhancing expected utility in an investment decision. A quasi-experimental pretest-posttest technique was used for the 62 young professionals who accepted the invitation to volunteer in the study. The Bayesian Paired Sample t-test depicts the result favoring the alternative hypothesis that the seminar-workshop enhances expected utility in an investment decision. The Cohens d standardized effect size confirms the more considerable improvements are in the SEC and the stock market, while confusion arises in stocks versus savings.
Keywords: Expected Utility, financial literacy, quasi-experimental, Bayesian Paired Sample t-test