Financial literacy and self-belief in financial knowledge influence how much risk people take with their money. People who feel confident in their financial knowledge are more likely to invest in stocks. However, those who are aware of their lack of financial knowledge are less likely to invest. Factors like risk-seeking behavior, income levels, and income uncertainty also play a role in how people assess their financial knowledge. Accurate self-assessment can impact the choices individuals make with their investments, suggesting ways to improve financial decision-making.