Abstract: The Role of Financial Literacy in Influencing Perceptions and Behaviors of Urban and Rural Investors Financial literacy significantly affects how choices are made and contributes to economic stability in both metropolitan and countryside regions. This research examines the impact of financial awareness on perception, decision-making, and risk-taking behaviors of investors from various socio-economic backgrounds.

The study emphasizes that urban investors, with increased access to financial education and resources, often embrace varied and riskier include stocks, mutual funds, and digital assets. Conversely, rural investors, frequently limited by restricted access to financial literacy and official banking services, tend to favor safer alternatives like fixed deposits, gold, and real estate.

Moreover, the research highlights obstacles like misinformation, distrust in financial organizations, and socio-cultural factors that affect financial literacy patterns. By encouraging financial education via specialized programs and digital literacy efforts, both rural and urban investors can improve their financial choices and aid in economic development.

The results highlight the necessity for customized financial education initiatives to close the knowledge gap and promote informed financial literacy choices among various demographic groups

Keywords: financial literacy, Urban Investors, Rural Investors, Investment Behavior, Risk Perception, Socio-economic Factors, Financial Education, Economic Development, Digital Financial Inclusion, Behavioral Finance

| DOI: 10.17148/IARJSET.2025.12465