Financial Literacy and Investment Motivation as Key Drivers Shaping Investment Behavior

Abstract

Investment plays a crucial role in enhancing financial well-being and economic stability at the individual level. This study aims to analyze the relationship between investment knowledge, investment motivation, and investment interest toward the investment behavior of Indonesian society. The shift from traditional financial instruments to digital investment platforms serves as the primary background of this research. A literature review approach was employed by examining studies from the past five years that explored psychological and cognitive factors influencing investment decision-making. The findings indicate that investment knowledge significantly enhances the confidence of beginner investors by providing a rational understanding of risks and expected returns. Furthermore, financial and social motivation strengthen the intention to invest, acting as a psychological driver that stimulates proactive financial behavior. Meanwhile, investment interest emerges through the interaction of financial literacy awareness, intrinsic motivation, and individual perceptions of investment opportunities. These elements collectively shape rational investment behavior in the digital era. The study concludes that promoting financial education and expanding digital investment access are essential strategies to increase public participation in Indonesia’s capital market.