Assessing the Effects of Financial Literacy on Personal Investment Decisions: The Case of Stanbic Bank Zambia Limited

Financial literacy is a crucial determinant of individual investment decisions, influencing risk assessment, portfolio diversification, and overall financial wellbeing. This study examines the effects of financial literacy on personal investment decisions, using employees of Stanbic Bank Zambia Limited as a case study. The research evaluates the relationship between financial literacy and investment decision making. A quantitative research approach was employed, utilizing structured questionnaires to collect data from 103 employees. The data was analyzed using descriptive statistics, Pearson correlation, and regressions analysis in SPSS. Findings indicate a weak but statistically significant positive relationship was observed between financial literacy and investment decision-making, suggesting that while financial knowledge enhances investment choices, other factors such as risk tolerance and economic conditions play a stronger role. The study recommends enhancing financial literacy programs with advanced investment education, behavioral finance training, and personalized financial advisory services. Future research should explore psychological and behavioral factors affecting investment decisions.