To What Extent Does Income Level Reflect the Saving or Investment Behavior of Indian Youth via their Risk Awareness?

This research explores how income level influences the saving and investment behavior of Indian youth, with a particular focus on the role of financial risk awareness. The study adopts a mixed-methods approach, combining quantitative data from a pre-validated survey of 135 respondents aged 18–30 with qualitative insights and external reports from RBI, SEBI, and the Global Findex database. By examining both income differences and cognitive understanding of financial risk, the paper seeks to uncover whether higher income translates into greater financial literacy and more informed investment decisions.

The analysis reveals significant disparities between high- and low-income groups in terms of financial awareness (Welch’s t-test, p = 0.0203), though the overall correlation remains weak (r = 0.042). This suggests that while income contributes to confidence and exposure, it does not independently determine financial capability. The study also finds that non-monetary factors—such as early financial education, parental guidance, and digital literacy—play a critical role in shaping behavior. Many lower-income youth, despite limited resources, demonstrate comparable awareness when supported by family or community-driven learning.

Ultimately, the paper argues that financial inclusion cannot rely solely on income-based interventions. Instead, it emphasizes early education and access to practical financial resources as key levers for long-term economic empowerment. By linking quantitative outcomes with behavioral insights, the study provides a nuanced understanding of how awareness, rather than affluence, underpins sustainable financial habits among India’s emerging generation.