HOW YOUNG POPULATION MAKES PERSONAL FINANCE DECISIONS? EVIDENCE FROM NORTH MACEDONIA

Abstract

Psychological factors, among which the key factor being the risk attitude, combined with the socio–demographic factors, define the person’s behavior and activity on the financial markets, as well as the decision–making regarding personal finances. The aim of this research is to analyze the decision–making process regarding financial choices of the young population in North Macedonia and to further explain young people’s motives for the proposed decision and the conditions under which such decision was made. The research was conducted through an AHP-based questionnaire that was distributed to respondents younger than 35 years. According to the obtained results, the respondents value stability the most, hence their primary choice is investment in property and luxury goods. Young people are less inclined to invest, especially in the more complex financial instruments. That being the case, apart from the campaigns already created, further encouraging young people to make better and more informed decisions is necessary.