The Influence Factors of Young People in Making Investment Decisions

Abstract

Investment is an act of delaying current consumption to be included in productive assets in a certain period. It means that investment is sacrificing something to obtain benefits or profits in the future. Investment is divided into two forms: real investment (gold, land, and buildings) and investment in financial assets (stocks, bonds, and deposits). Investment is a term that must be familiarise and well known by people nowadays. With the current economic situations that uncertain and still in healing process after affected by the Covid-19 pandemic, investment become a term that should be educate to young people and also kids at early ages. As parents we should teach our children what is investment. How they can start investing at their age. What the benefits that they will get from investment. Parents can start by open an Amanah Saham Bumiputera (ASB) account. Teach them to save a small portion of their pocket money and invest it at the end of each month. According to Bartik, (2011) early childhood education on investment will give effect towards economic development. He also found that investment in early childhood programs including educating them with financial educations and many more will result in a local economy with more skilled labour, which will attract more and better jobs to the local economy. Dash (2010) found that woman tends to save more rather than invests. Risk taking behaviour of the investor is depend on their risk preferences. Besides the risk behaviour of the investors himself, Arif (201 5) found that the performance and the financial statement of the firm are the main factors that investors will consider in investment decision making process. They tend to choose or invest in company that performed well. Financial literacy or financial knowledge is one of the influence factors in decisions making but not significant as condition of the financial statement of the firm chosen. This article explores about influence factors of young people in making investment decisions. The articles begins by outlining about investment and young people. What is risk and return? Confidence level versus knowledge level that influence more in making investment decisions. The article then discusses the constraint in investment industry. The final section discusses the effect of investment industry towards economic performance. And finally, the article ends with conclusion parts.