Open AccessFINANCIAL DECISION MAKING AMONG YOUNG ADULTS: AN AHP APPROACH
Author(s) -
Tamara Kaftandzieva,
Violeta Cvetkoska
Publication year - 2021
Publication title -
international journal of the analytic hierarchy process
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.213
H-Index - 3
ISSN - 1936-6744
DOI - 10.13033/ijahp.v13i3.864
Subject(s) - analytic hierarchy process , finance , investment (military) , real estate , population , variety (cybernetics) , decision model , financial security , decision making , actuarial science , business , marketing , economics , computer science , demography , operations research , engineering , sociology , political science , artificial intelligence , purchasing , politics , law , mathematical economics
In an uncertain economic environment, the decision-making process regarding personal finances relies heavily on personal experience and behavior, and is largely influenced by a variety of psychological and socio-demographic factors. The aim of this paper is to analyze the key factors of the decision-making process regarding financial choices of the population of young adults in the Republic of North Macedonia, and to further explain young people’s motives for the proposed decision and the conditions under which the decision was made. The research was conducted through an AHP-based questionnaire that was distributed to respondents ranging in age from 18 to 35 years. According to the obtained results, the respondents value financial security the most, hence their primary choice is investment in real estate and commodities. Young adults are less inclined to invest, especially in the more complex financial instruments. The developed AHP model will help young people make better, fact-based financial choices.