This thesis examines the relationship between financial literacy and risk aversion among young men and women studying at university in Sweden. This is achieved by utilizing a survey methodology, collecting data from 304 university students, and focusing on their financial knowledge and risk attitude. The research aim is to determine if there is a significant difference in risk aversion between men and women and what impact financial literacy may have on this gap. The results reveal that men exhibit lower risk aversion compared to women. However, while holding financial literacy constant, the gap in risk aversion slightly decreases. Furthermore, when financial literacy increases, the risk aversion reduces in both genders. This suggests that financial literacy could mitigate gender differences in financial decision-making. Despite the findings, the regression analysis shows that the interaction term between gender and financial literacy is not significant, which amplifies the necessity of further research. This study contributes to an understanding of how financial literacy influences the relationship between economic behavior and financial decision-making among young adults and genders
