Influence of Financial Literacy on Investment Decision-Making among University Graduates in Edo State

Financial literacy is widely recognised as a prerequisite for sound investment decision-making, particularly among young graduates entering the labour market in South South Nigeria. This study investigates the influence of financial literacy on investment decision-making among recent university graduates in Edo State. A survey research design was employed, and 280 graduates from three tertiary institutions in Benin City were selected using purposive and snowball sampling techniques. Financial literacy was measured across three dimensions: basic financial knowledge, investment product awareness, and risk tolerance understanding. Investment decision-making quality was assessed by portfolio diversification behaviour, investment horizon, and reliance on professional financial advice. Data were analysed using descriptive statistics and ordinal logistic regression. Results revealed that only 34% of respondents demonstrated adequate investment product awareness, and 61% had never consulted a licensed investment adviser. Ordinal logistic regression showed that investment product awareness was the strongest predictor of portfolio diversification behaviour (OR = 3.14, p < 0.01), and risk tolerance understanding significantly predicted longer investment horizons (OR = 2.47, p < 0.05). The study concludes that financial literacy deficits, particularly in investment product knowledge, severely constrain sound investment decision-making among young graduates in Edo State. It recommends incorporating personal finance and investment education into tertiary curriculum across South South Nigerian universities. Keywords: financial literacy, investment decision-making, university graduates, Edo State, South South Nigeria