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This research investigates the key influencing factors of personal financing and risk tolerance of millennials in Ireland. The four-influencing factor on the basis of which the research was analysed were: financial literacy, demographics, personality traits and role of parents. The research was based on quantitative study as survey questionnaire was used to collect the data for the research.
The data analysis was done using the SPSS software as it enabled the researcher to perform in-depth analysis. The analysis of the primary research stated that financial literacy effects the way millennials manages their personal finances such that higher financial literacy rate better a person is able to manage its expenses efficiently. It was identified that demographics doesn’t influence financial literacy however, it has significant influence on risk tolerance in millennials. The two personality traits that majorly influenced financial risk tolerance are Conscientiousness and Extraversion. Moreover, it was even concluded that parents play a major role in influencing how millennials manage their finances as the main things they learn from home while growing up are savings and budgeting. Therefore, after knowing all the influencing factors it will be easier for educators and financial institutions to frame their policies and products keeping in mind these factors which will beneficial at both the ends.
