Financial Literacy and Investment Behaviour of Young Professionals in Enugu Metropolis

Financial literacy has emerged as a critical individual capability for navigating an increasingly complex investment landscape, with evidence from both developed and developing economies suggesting that financially literate individuals make superior investment decisions, accumulate more wealth, and achieve greater long-term economic security. This study examines the relationship between financial literacy and investment behaviour among young professionals in Enugu Metropolis. The research is anchored on the Behavioural Finance Theory, which integrates psychological insights into the analysis of financial decision-making, explaining how cognitive biases, emotional responses, and knowledge gaps affect investment choices. A descriptive survey research design was employed. The population comprised young professionals aged 22 to 40 years working in Enugu Metropolis across the public sector, private sector, and self-employment categories, estimated at approximately 85,000 individuals. A sample of 384 respondents was selected using systematic random sampling from professional associations and employer registers. Data were collected via a structured questionnaire and analysed using binary logistic regression and descriptive statistics. Findings indicate that financial literacy dimensions, specifically knowledge of investment products, retirement planning awareness, and risk diversification understanding, are the strongest predictors of productive investment behaviour, including equity market participation, pension contribution regularity, and savings plan adherence. The study further finds that young professionals with formal financial education make investment decisions with significantly lower susceptibility to cognitive biases. It is concluded that improving financial literacy among young professionals in Enugu is an evidence-based strategy for improving household wealth accumulation and capital market participation. The study recommends that the Securities and Exchange Commission and employers co-fund financial literacy workshops targeting young professionals in Enugu.

Keywords: Financial literacy, investment behaviour, young professionals, Behavioural Finance Theory, Enugu