A STUDY ON AWARENESS OF FINANCIAL LITERACY AMONG

COLLEGE STUDENTS IN CHENNAI

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CHAPTER 1

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 INTRODUCTION

Financial literacy is the ability to use skills and knowledge to take effective and informed money
management decisions. The present global scenarios focus on the importance of financial literacy for
both individuals and the economy. Financial literacy has been progressing and it has been recognised
as being significant in the individual life skill and has gained importance in both academic research and
policy analysis. The rapid growth of nation may lead to economic crises. It is high time people gain
more financial knowledge and capabilities for healthy economic life.

The need for financial literacy and its importance for financial inclusion have been acknowledged by
all possible stakeholders - policymakers, bankers, practitioners, researchers and academics across the
World. Various financial literacy programmes have thus been implemented by concerned institutions,
with a lot of them being unique in their approaches and delivery mechanisms. For instance, programmes
have been customised to suit the requirements of students, microfinance clients, slum dwellers, bank
clients etc. Some programmes have a particular focus such as a specific financial product, developing
saving habit among target group, customer protection, business management, and so on while others
have been more general and they deal with money management skills, advocating healthy financial
practices etc. Varied techniques such as videos, stories, activities, comic books etc. have been used,
besides traditional methods of classroom training. Banks like Punjab National Bank and State Bank of
India have also begun setting up financial literacy and credit counselling centres through which people
can gather requisite information.

This study examines the knowledge about financial literacy among college students. There is substantial
evidence that financial literacy is lacking at many levels. This paper focuses on the financial literacy of
graduates. While not a new topic of investigation, this research augments existing literature by comparing
students' perception of knowledge, actual knowledge and behaviour regarding financial decisions. The
purpose of the study is to build an understanding that will aid in the structure and content of curriculum for
college students that will best meet their needs during college as well as after graduation. Financial literacy
is an important but oft ignored skill that is vital for young people. This paper reports investigation of a
study on the influence of various socio-demographic factors on different dimensions of financial literacy
among the college students. The main reason for this study to know how much the students are aware
about the savings, investments options. Because each and every student across will be handling their
own money in future irrespective of their study field.

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FINANCIAL LITERACY:

Financial literacy plays a significant role on enhancing individual life skills. OECD defines financial
literacy as “a combination of awareness, knowledge, skill, attitude and behaviour necessary to make
sound financial decisions and ultimately achieve individual financial wellbeing.” (OECD, 2006). United
Nations report shows that, India has the world's largest youth population despite having a lesser
population than China. (The Economic Times, 2015). Most of the youngster’s face networked economic
environment than their parents. Financial literacy is very important to them to plan their savings. Being
conscious of money management, income, saving, and spending can equip the young people with
knowledge to safeguard themselves from future shock.

While a lot of experiments have been done in the realm of financial literacy, it is difficult to point one
standardised method or approach that works best in all scenarios with all kinds of target population.
Although this could be attributed to the lack of a standard definition or measurement tool, it could also
be the result of India’s diversity in terms of language, caste, culture etc. Hence, it is challenging to
design a product that fits all sections of the population equally well.

INVESTMENT DECISION:

Economic theory on investment decision treats the investment decision of the individual as a
macroeconomic aggregate and the microeconomic foundations of it are drawn from inter temporal
utility theory. Under the standard assumption of this theory, decision makers are perfectly rational and
able to fully utilise all the information available. Accordingly, individuals maximise their utility based
on classic wealth criteria making a choice between consumption and investment through time. It
suggests that they make optimum choices that make the best use of the expected value of their private
utility based on preferences that are consistent across time. The decision-making for investment
products can be described within the framework of consumer purchase decision-making, which is
depicted as a series of steps that include problem recognition, information search and evaluation of
alternatives, purchase decision, and post-purchase behaviour (Schmidt & Spreng, 1996). Under this
framework, information search is one of the critical elements of consumer decision-making (Moore &
Lehmann, 1980). Saving may be regarded as a process carried out by consumers and may be calculated
by the balance from disposable income after accounting for expenditure. Warneryed (1999) considered
saving as the result of a deliberate decision making process and to save is an act of regularly keeping
away some resources for a goal. Saving is a everyday decision that may occur where a consumers daily

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or monthly consumption expenditure is consistently and significantly below the level of their monthly
income though subject to fluctuations (Goodfellow J. H. (2007). The most important thing in pre-
purchase decision making for the customers of financial product and services (Friedman and Smith,
1993). According to Schmidt and Sprengs (1996) while taking investment decisions, consumers depend
on financial information from personal and also impersonal sources. Personal sources like professional
financial service providers (financial advisers, brokers and others), friends and relatives. Impersonal
sources include like books, pamphlets, reports, magazines, radio, TV and the internet.

FINANCIAL ATTITUDE:

The effective financial education can be built by the way of financial literacy dimensions (financial
knowledge, financial behaviour and financial attitudes) with help of conducting financial literacy
programs. Concentrating on financial knowledge and financial awareness is not enough. Assessing the
financial attitude and financial behaviour necessary to develop the financial literacy of the people. The
relationship between financial attitudes; financial behaviour and financial knowledge must be studied
thoroughly, in order to know the relationship between different dimensions of financial literacy. Thus,
financial education programs should not only aim at increasing financial knowledge of the people but
must also focus on developing positive financial behaviour and favourable financial attitudes among the
people in order to improve the financial literacy amongst the people. (Puneet Bhushan. et. al., 2014)
Kenichiro Chinen and Hideki Endo., (2012) have attempted to investigate the difference between
handling the finance and educational level in US. In this study they attempted to evaluate the impact of
financial literacy on students‟ attitude towards financial education and found that there was a need for
a subject of financial literacy. While measuring the attitude with the help of basic financial education
index a positive relationship was found between basic courses in Finance and Economy and the financial
literacy.

FINANCIAL KNOWLEDGE:

There are many definitions of financial literacy ranging from broad to narrow. Generally speaking,
financial literacy denotes “One’s understanding and knowledge of finance related to money
management. It includes the ability to balance a cheque book, manage a credit card combines both
knowledge and understanding and actually using that knowledge to plan and implement financial
decisions” People need to be more knowledgeable about their funds, how they operate and the options
that are available to them (Abetz, 2005). Young people in particular must understand the basics of

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investing and planning for the future including the relationship between risk and return, the diversity
between short term & long term investments and the ramifications not planning adequately for their
retirement.

FINANCIAL BEHAVIOUR:

Financial knowledge means a wide range of financial behaviour including wealth accumulation, stock
market participation, portfolio diversification, indebtedness and responsible financial behaviour in
general. New Zealand Banking Group, Australia (2008) found that those in the top 20% of financial
literacy scores were significant and more likely than those in the lowest 20% scores to engage in what
could be considered to be “responsible” behaviours such as minimizing banking fees, carrying out
comparisons and borrowing from mainstream financial institutions rather than from family or friends.
The study also found significant relationship between financial literacy and ownership of financial
assets from investment products to insurances. The impact of financial knowledge on various aspects
of financial behaviour such as cash-flow management (i.e., paying all bills on time, keeping records,
etc.); credit management (i.e., paying credit card balances in full each month, comparing offers before
applying for a credit card, etc.); saving and investment (i.e., having money spread over different types
of investments, having a retirement plan, etc.); and other financial experience, such as planning and
setting goals for financial future were also studied. The relationships between specific financial
knowledge scores and the corresponding financial practices were statistically significant (e.g., knowing
about credit issues is correlated with having higher index scores for credit management practices). It
was also pointed out that “this pattern might indicate the increase in knowledge and experience can lead
to improvements in financial practices, although the causality could flow in the other direction – or even
both ways” (Hilgert et al., 2003, p. 321). There has been no attempt to link financial literacy with
financial behaviour and actual financial outcomes. It is relatively possible that a few aspects of financial
literacy are more or less significant in an economic sense in shaping good or bad financial behaviour.
One of the important areas could focus on the mechanism of financial literacy to find the most and least
vital to financial success. (Andrew C. Worthington., (2006).

FINANCIAL KNOWLEDGE (FK) AND BEHAVIOUR (FB) :

Financial knowledge and financial behaviours are linked in a relational way (Washington State
Department, 2003). The report was pragmatic in a way that financial experiences and financial
behaviours mutually contribute to financial knowledge. Financial experience and more positive

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protective type financial behaviours, predict the extent to which they are financially literate and more
effective in their financial management. The need of financial literacy has been found to be a
predominant fact worldwide (Lusardi & Mitchell, 2005), United Kingdom (Smith, 2005), Japan and
Australia (Smith, 2005). Many individuals who lack financial literacy do hesitate in taking up innovative
financial products, making sound financial planning decisions (Hilgert, et al, 2003; Agnew & Szykman,
2005; Alessie, et. al., 2007; Agarwal, et al 2007; Lusardi & Mitchell, 2005; 2007; Lusardi, 2008a;
2008b; Cory & Pickard, 2008). Financial Capability Model has been developed to know the individual
financial behaviour, attitude and knowledge with five components of personal finance each representing
financial knowledge and attitude towards behaviour. (Atkinson et. al., 2006) In the present scenario,
understanding the basic money management skills like living within a budget and handling credit and
debt is a very vital role for students. Having basic or low knowledge of financial management will affect
their academic performance, mental and physical well-being and even their ability to find a job after
their studies.

CUSTOMISING FINANCIAL LITERACY MODULES BASED ON STAGES OF LIFE:

After establishing the what and when about financial literacy, it is important to understand the how of
it. When an individual grows in age, a lot of psychological and behavioural attributes change. As for as
the economy is concerned the social, political or economic environment attributes change. The three
prime attributes that notably differ with each of the four stages of life and should be considered well
while designing any education module, but especially a financial literacy module, our attention span,
cognitive ability, and general points of attraction.

MONEY MANAGEMENT:

The objective of a successful money management is developing and following a personal financial plan.

A successful financial planning can be developed in six steps

i. Set up goals
ii. Preparing net worth statement
iii. Obtain past income and expenses record
iv. Preparing complete spending and savings planners
v. Keep records
vi. Evaluation of the same.

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INVESTMENT AVENUES AND SKILLS:

BANK: Banks accept deposits from the public and lending money to the needy. Banks play an
admirable role in circulating money in the economy. The most common and popular products offered
by the bank are:

i Savings Account: The benefit of savings account is that one can make deposit and withdrawals
whenever they wanted. The deposit is protected by DICGC. Most important features of savings account
are interest rate, frequency of interest payment periods, holding minimum balance account and free
withdrawal facilities.

ii. Certificate of Deposit: Depositing specific amount of money for a fixed period of time for a fixed
interest rate which is higher than regular Savings account over a period of time such of 3 months, 1
year and 2 years to 10 years. The longer the term of the CD, the greater return on money deposited.

 Stocks: It is equity investments; buying shares of companies to get ownership in the company. The
price of a stock is generally dependent on a combination of current profits and expected future profits
of that company. The place where one can buy or sell shares of stock is called stock exchange.

 Initial Public Offering (IPOs): The IPOs play a vital role in financial markets when a company raises
money in a stock offering it sells shares directly to initial investors.

 Mutual Funds: A mutual fund is a type of investment where the money manager takes cash and invests
it in right portfolios. Most mutual funds are called open ended funds because they will continue to take
our cash, manage it for us, and issue shares to show our ownership. Each night the mutual funds
calculate the value of all of their holdings and divide that value by the number of shares they have
issued. They call it as Net Asset Value or NAV.

 Bonds: Bonds differ from stocks in that they have a stated earnings rate and will provide a regular
cash flow in the form of the coupon payments to the bondholders. This cash flow contributes to the
value and price of the bond and affects the true yield (or earnings rate) Financial attitude for the purpose
of this study is defined as “the application of financial principles to create and maintain value through
decision making and proper resource management. Attitude is defined as “a psychological tendency
that is expressed by evaluating a particular entity with some degree of favour or disfavour. Therefore,
financial attitude can be considered as the psychological tendency expressed when evaluating
recommended financial management practices with some degree of agreement or disagreement.

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NEED AND IMPORTANCE OF THE STUDY:

Financial literacy or financial literacy education has of late being felt very important by the investing
individuals. Financial literacy education is the process by which the financial consumers improve their
understanding of financial concepts, products through information in order to develop the skills and
confidence to become more aware of financial opportunities and risks. Financial literacy helps to make
informed choices, to know the modus operandi of financial markets and institutions to take effective
actions to improve the financial wellbeing. The importance of financial literacy education has improved
in recent years due to the developments in financial markets and economic policy changes. Financial
literacy for students is an important tool to improve their financial capability and communities at large.
Students should be taught how to handle money. The vast majority of college coursework is designed
to help people pick up skills to earn more money and money management for college students can
proactively address many issues one faces as an adult and to live free from financial worry (National
Financial Educators Council, 2013). In the current scenario, it is essential for the academic institutions
to take initiative and incorporate financial literacy education in their academic curriculum to achieve
growth in the economy. A prerequisite in the first step towards financial literacy is to create awareness
and participation in the financial matters. So, financial education will help to improve the financial
skills of the students by imparting knowledge about the risks and rewards inherent in financial
instruments.

STATEMENT OF THE PROBLEM:

Financial literacy education is an important element for promoting financial literacy and achieving
financial stability in the student life. Previous studies found that financial literacy is one of the major
key aspects to enhance financial knowledge to B-School students on savings, investments and other
financial matters. However, the obtained outcomes are not comprehensive and consistent. Few studies
have found, financial literacy significantly influencing the financial knowledge and behaviour of the
students. A few researchers earlier made an attempt to describe financial literacy among youngsters
and their financial knowledge. The review of literature reveals varying results with some supporting
the linkage between financial knowledge and behaviour and others not finding any proof. The present
study is aimed at attempting in a comprehensive manner focusing on the financial literacy level and
savings & investment behaviour among B-school students RESEARCH GAP The review of literature
done for this study reveals that many studies were conducted in the area of financial literacy and only
a few researches were related to the Business School students. Most of the studies ignored the effect of
financial literacy on money management practices of people. This study provides strong evidence in
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this regard, by including questions on practices. Some of the studies have examined the factors that
influence the acquisition of financial knowledge and behaviour but these studies have not found out
where they can to get financial knowledge and behaviour. Therefore, an attempt has been made in this
study to explore the impact of financial literacy among B-school students with evidence of
opportunities the students have to acquire financial knowledge through appropriate channels that are
used in educating students on financial matters.

OBJECTIVES:

The objective of the study is

 To evaluate the financial literacy of college going students

 To determine the financial attitudes of college going students.
 To determine the financial behaviour of college going students.
 To diagnose the impact of stream of education on financial literacy.
 To analyse the money management skills possessed by Students.

LIMITATIONS OF THE STUDY

Intensive care has been taken during all the stages of conducting research, from data collection to
analysis and interpretation of data for achieving the desired research objectives. Due to time and
resource constraints, certain limitations emerge and these are as under given. The geographical coverage
of the study is confined particular in Chennai district only. There is a possibility that respondents
interpret a question or statement differently as per as their level of understanding and interpretations.
Hence false information by the respondent might mislead the researcher. The length of the questionnaire
might have become a limitation and respondents might lose interest in filling questionnaire and they
might give wrong information. The language of the questionnaire might be the problem for the
respondent who belongs to other education stream. It might be a possibility that researcher may get high
numbers of filled questionnaire from one college or university only. This may affect the results of the
study. Although the sample size was sufficient in terms of survey research but it can be increased, a
large number of samples will enhance the accuracy and reliability of the research.

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CHAPTER 2

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 REVIEW OF LITERATURE

INTRODUCTION

Extensive study of the relevant literature has been carried out with the help of books, research articles
journals besides conference proceedings for identifying and selecting variables for research
investigation focusing on financial literacy.

The review of literature is consist of the following categories:

1. Financial Literacy

2. Financial Planning

3. Financial Knowledge

4. Financial Attitude

5. Investment Decision and

6. Financial Behaviour

Jeyaram & Mustapha (2017) examined the relationship between financial literacy and demographic
factor of university students in chennai. The results showed that students studying accounting and
business administration found to have a better financial literacy than students in other branches. It was
also found that there is a relationship between gender and level of financial literacy, as female students
found to have lower levels of financial literacy than males.

Mandell, Lewis and LS Klein. (2007) while attempting to study motivation and financial literacy in
the context of parental influence on young adults revealed that many young adults inspite of having
financial independence were still dependent on their parents for financial support and the parental
involvement in the matters of the finance did not improve the financial knowledge of young adults
anyway.

Ramkumar. V. (2007) while discussing the initiatives taken by SBI in respect of financial inclusion
and financial literacy has highlighted the scope of financial inclusion in commercial banks and affirmed
that the 'Financial Inclusion' efforts must provide access to a variety of financial services including
savings, long and short-term credit, insurance, pensions, mortgages, money transfers etc., at a reasonable
cost. The aim of banking services is to focus on low income and suitable banking products to meet the
individual requirements of such group of consumers. He was of the view that the financial inclusion in
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rural and urban areas, micro enterprises and advisory services be provided to the poor. Because the right
advice at a difficult time can go a long way.

Bhushan Bhatia (2008) has studied the importance of financial literacy. The author discussed the global
scenario of the financial literacy particularly in the context of the developed economies. According to
the author, people do not save sufficiently and also not aware of the need for future financial
requirements in their younger age. So when they become old, they tend to feel the pinch of poverty. He
further explained the steps taken by RBI to promote financial education and financial literacy. He
concluded that people should realise the importance of financial inclusion. The banks and others striving
agencies must aim at enhancing financial literacy among the masses.

Annamaria Lusardi, et.al. (2010) examined financial literacy among the youngsters using the most
present wave of the 1997 National Longitudinal Survey of Youth. The authors found that financial
literacy was low; less than one-third of young adults had basic knowledge of interest rates, inflation and
risk diversification. Financial literacy was strongly correlated to socio-demographic characteristics and
family financial difficulty. A college-educated male whose parents had stocks and retirement savings
of about 45 percentage points which expected to identify more risk diversification than a female with
less than a high school educated parents without wealth. Understanding the factors that add to or detract
from the achievement of financial knowledge is able help to policymakers to design effective
interference targeted at the young population.

Jorgensen, Bryce L. and Jyoti Savla (2010) have tested a conceptual model of perceived parental
influence on the financial literacy of young adults using structural equation model (SEM). Their findings
indicated that parental influence had a direct significant influence on financial attitude but did not have
any effect on financial knowledge and the parental influence had an indirect significant influence on
financial behaviour.

Margaret Sherrard Sherraden (2010) has considered ‘financial literacy’ as a widely used concrete
approach to preparing people to manage their finances. The ‘financial capability’ is also proposed as an
alternative concept in the study, which includes both the ability to act and the opportunities for those
who lack in financial knowledge especially the low-income households requiring financial literacy and
financial inclusion. This study also examined how people obtain financial knowledge and skills through
financial socialization, financial education and guidance, financial advice and counselling.

Elisabete Fatima Simoes Vieira (2012) reviewed the problem of financial literacy and revealed that
individuals and families’ financial decision practices were considered more essential in recent years.

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The present global market is very complex for financial products and services. Hence the individuals
must be competent enough to make well-informed and correct decisions.

Azwadi Ali, Mohd S. A. Rahman, and Alif Bakar. (2013) identified the problem associated with low
level of financial literacy among people in the context of their poor planning for future savings which
results in their bankruptcy. Their study observed that people had not fully utilised their money lying
unused with them in profitable investment avenues.

Deerajen Ramaswamy. et. al. (2013) have conducted a study to assess the level of awareness of
financial literacy among management students. Four fundamental part of financial literacy is measured
specifically level and importance, definitions and theories, constraints and measures to improve
financial literacy. The study assessed the relationship between financial literacy and demographic
variables such as age group, gender and programme of study and revealed that most of the students had
a medium level of financial knowledge, skills in savings and borrowings. The study also found that age,
gender, language, race and income did not impact on the financial literacy.

Duvvuri Subbarao (2013) while stressing the need for financial literacy and financial inclusion
reiterated that the purpose of financial education was to teach people to deal with financial decisions
more intelligently with greater confidence in order to make it more interesting and instructive relevant
to the age and income group.

Sweta Kumari, Priya. (2016) in their conference paper have made an attempt to study the growing
efforts on financial literacy. According to them, a majority of Indian population are not interested in
modern financial products. They are also of the view that Indian people prefer to save but they do not
invest the saving wisely. According to them financial stability stood on three pillars namely financial
inclusion, financial literacy and customer protection. They also suggested that financial literacy level
could be improved by integrating financial education in high schools and social marketing and adult
education through self-help groups.

Justine S. Hastings. (2013) discussed the extent to which a competitive market provides incentives for
firms educating consumers that ensure informed choice. Financial literacy as a construct was a recent
development and financial education was not an antidote to poor financial decision making. They were
of the view that school-based financial education programmes would prove to be advantageous because
only students were a captive audience. It was further reiterated that financial literacy education
programmes not imparting financial outcomes could not be successful.

Sumit Agarwal, et.al (2015) have made an attempt to study the financial literacy and financial planning
behaviour based on the financial advisory program in India. This research has examined have the

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investment behaviour, liability choice, risk tolerance and insurance practice of program participants
based on demographic and socio-economic groups in relation to interest rates, inflation and risk
diversification and found that majority of retired people appeared to be financially literates with regard
to interest rates, inflation and risk/diversification.

Bhattacharjee (2014) empirical examined financial literacy and the factors associated with it. The study
came with the findings that, the majority had only basic knowledge about saving account and basic
financial instruments like life insurance policies, public provident fund and national saving certificate.
The knowledge pertaining to financial market instruments, capital market, mutual fund were found low.

Mandell. (2005) while collecting a survey for finding out financial literacy of high school students has
proved that students are financially less knowledgeable in financial matters. The survey also aims at
determining the correlation between financial literacy and propensity to save. It is found that the
measures financial literacy and financial education had a positive impact on savings. Finally, the study
also has found that financial education affected the propensity to save without improving financial
literacy.

Mckenzie and Wooddratf (2012), in their study, viewed financial literacy as to mean consumer
awareness, skills and knowledge that would enable them to take informed and effective decisions about
their financial resources.

Puneet Bhushan., and Yajulu Medury, (2014) are of the view that effective financial education
programme must be comprehensive so as to include financial knowledge, financial behaviour and
financial attitude as different dimensions of financial literacy. Financial literacy of the population can
be improved by not only focusing on financial knowledge and financial awareness but also assessing
financial attitude and financial behaviour. However, the study suggests that financial knowledge would
shape financial literacy of the individual but financial attitude and financial behaviour of the individual
would have a considerable effect on overall financial literacy of the said individual.

Peter, P. C. (2015), while investigating the role of parental influence and financial behaviours among
young adults found that there was a weak association between financial knowledge and financial
behaviour. However parental influence and self-discipline associated positively with financial
behaviour. In the gender group, financial knowledge and parental influence improved the financial
behaviour of women.

Rabeeea Rizui and Afsheen Abrar (2015) indicate that age, income, language and orientation of
education would have a significant role in determining the investment style of an investor. They further

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indicate that financial literacy and accounting information would be the most likely influencing factors
in the decision-making behaviour of individual investors

Agarwalla Sobhesh Kumar, Barua Samir, Jacob Joshy, Jayanth R. Varma (2012) conducted a
study among 3000 individuals, and found that financial knowledge among Indians is very low than the
International standards. But the financial behaviour and attitude of the employees and retired seems to
be positive

Lusardi, Mitchell and Curto (2006), Sages and Grable, (2009) in their study found that the
individuals who has the lowest level of financial risk tolerance is the least competent in terms of
financial matters, have the lowest subjective evaluation of net worth and are less satisfied with their
financial management skills.

CONCLUSION:

In this chapter an attempt was made to undertake through review of literature relating to Financial
Literacy, Financial Planning, Financial Knowledge, Financial Attitude, Investment Decision and
Financial Behaviour. The reviewed literature was systematically arranged for the purpose of
understanding the concepts and their implication for the present research.

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CHAPTER 3

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 RESEARCH METHODOLOGY

INTRODUCTION:

According to the burns (1997) research is a systematic investigation or inquiry whereby data are
collected, analyzed and interpreted in some way in an effort to understand, describe, predict or control
an educational or psychological phenomenon or to empower individuals in such contexts. Baskerville
(2008) has define methodology as the analysis of the principles of methods, rules and postulates
employed by a discipline, or the systematic study of methods that are, can be, or have been applied
within a discipline. Research methodology solves the research problem in a systematic way and it
provides blue print how research will be carried out. It is the study of method by which we gain
knowledge. This chapter describes the various aspects of research methodology used for the current
study are presented in chronological order. It starts with the rationale of study and followed by statement
of problem, objectives of the study, scope of study, research design, sampling procedure, questionnaire
development, data collection, analysis and presentation, limitations of the study and future scope.

According to the Advance Learners Dictionary of Current English research is a careful investigation or
inquiry especially through search for new facts in any branch of knowledge. Before executing any
research study, its research methodology should be laid down explicitly. Research methodology
includes various steps that are generally adopted by a researcher in studying his/her research problem
along with the topic logic behind it. Major parts of the research methodology are statement of the
problem, research design, sampling plan, questionnaire design, and field work plan and analysis plan.

RATIONALE OF THE STUDY:

Financial Literacy linked with the economic development of India therefore it has become one of the
most concerned issues in current scenario. Every one deals with financial issues in day to day life. It
helps in understanding concepts such as budgeting, saving, investing, earing further helps in
understanding financial market as well. It gives confidence to an individual to make effective financial
decision. The chances of being cheated are very low of financial literate person and to be participated
in the financial market is high. The concept of financial literacy is gaining momentum due to increase
in complexity of the financial market, financial innovations and resultant development of new products,
growing access to credit and financial instruments and shifting of defined pension scheme to ‘do it
yourself scheme. From students prospective financial literacy becomes very prominent item because
students deals with their day to day life expenses and they have to deal with major financial issues in
their future. Many students take loan for their studies and they may accept job with study they have to
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deal with both of this. Further many of them live on rent in another city for study. Financial literacy
will allow them to make more responsible decisions later on and mature into financially independent.
This research will be a guide for educational institution, policy maker, and financial institution to design
or to develop financial literacy program and incorporate basic financial topics in school and college
curriculum which leads to financial literate students. Moreover results of study may also be used to find
out the impact of stream of education, the impact of sociological background, the impact of demographic
profile and the impact of financial literacy program initiated by different institution on financial literacy
of students. This chapter presents a detail and systematic process that the researcher adopted to achieve
the objectives of the study. The main discussions in this chapter include: the research design, research
strategy, population of the study, the sample size and sampling technique, data sources and collection
method, validity and reliability of data, data analysis, model specification and ethical considerations.

RESEARCH DESIGN:

Research design is the conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. A good research design can provide valid
conclusions and suggestions from the research This section explains and justifies the appropriateness of
the research design adopted in conducting this study. It is often impossible and generally accepted that
the entire population for the study cannot be studied. This is normally due to the difficulty on the part
of the researcher in getting access to the whole target population normally due to the size of the
population, time constraints and the cost involved.

The research design is intended to provide an appropriate framework for a study. It can be considered
as the structure of research. It play role of glue which hold all the elements in a research project together.
According to Kothari (2004) research design refers to the overall strategy that one may choose to
integrate the different components of the study in a coherent and logical way. This is done in order to
ensure that one effectively addresses the research problem. Research design is the blue print of study.
Akhtar (2016) described four types of Research Design. They are:

1.Exploratory Research Design

2.Descriptive Research Design

3.Explanatory Research Design

4.Experimental Research Design

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Exploratory Research Design:

Exploratory research design defines as a research used to investigate a problem which in not clearly
defined. It’s the primary stage of research and the purpose of this research is to achieve new insight into
a phenomenon. Exploratory research is more to do with qualitative study. An exploratory research does
not seek to test hypotheses but it may develop hypotheses, (Dahari et al., 2007). Exploratory research
design accepted when problem is not specifically defined and broad.

Descriptive Research

Design Descriptive research involves describing a problem. It is also known as statistical research. This
research aims to accurately and systematically describe a population, situation or phenomenon. A
descriptive research design can use a wide variety of research methods to investigate one or more
variables (McCombes, 2019). Further descriptive research design answer the question like who, what,
where, when, why, and sometimes how of the research.

Explanatory Research Design

It can be understood by its name Explanatory research design which means explaining the aspects of
study in detailed manner. Explanatory studies seek to ask ‘why’ and ‘how’ questions. Akhtar (2016)
when the purpose of the study is to explore a new universe, one that has not been studied earlier the
research design is called explanatory. The main aim of explanatory research is to identify any causal
links between the factors or variables that pertain to the research problem.

Experimental Research:

Design Experimental research design is preferred when researcher wants to observe the effects of an
independent variable on depended variables with in certain situation. Sugiyono, (2006) define
experimental research as a tool which helps to find out the cause and effect relationship among variables
in a controlled situation. The present study follows descriptive as well as exploratory research design.
Descriptive research was conducted to describe the influence of financial literacy on college students
and exploratory research design to explore the level of financial literacy of college students.

20 | P a g e
Sample Design :

Universe - College Students of chennai District.

Population - Public & Private Colleges in chennai District.

Sampling Unit - Colleges of Chennai District

Sampling Techniques - Random Sampling

Sample Size - Primary data will be collected from 215 College going Students

SAMPLING PROCEDURE:

Sampling is the procedure to select some of the elements in a population to draw conclusions about the
entire population. The present study confined to map the financial literacy among college students of
chennai district.

QUESTIONNAIRE DEVELOPMENT:

A well-structured questionnaire was developed on the basis of elements of financial literacy pyramid
given by investment solutions north land, OECD financial literacy survey, SEBI literature on financial
literacy and college student financial literacy survey. Focus group discussion has done on what’s up
group with the subject expert and that discussion transferred into questionnaire. Modifications have
been made in the questionnaire, which were considered necessary according to the purpose of the study.
It contained both open ended as well as closed ended questions. Most of the questions were close ended
in the questionnaire. Open ended questions were asked to seek opinion and suggestion to improve
financial literacy among college students. The questionnaire has been divided into four sections.
Broadly these four sections cover financial awareness, financial attitude, financial knowledge and
financial behaviour of the respondents. The first section contained questions related to the
demographical profile and socio economic profile of the students, i.e. gender, income, age, caste,
religion, marital status, education, parent occupation, family nature, etc. The second section of
questionnaire consist all two important items given in financial literacy pyramid given by investment
solutions north land i.e. every day finance and occasional finance namely taxation, saving, goal setting,
budgeting, credit cards, spending, banking , insurance, interest, debt management, income, investing,
retirement planning, mortgages etc. Five point likert type scale and objective type questions were
developed to gather information regarding this. The third section of questionnaire consist five general

21 | P a g e
mathematical questions to check the financial arithmetic knowledge of the respondents. The forth
section of questionnaire covered financial specialist knowledge questions which was given in financial
literacy pyramid i.e. derivatives, stock market investment and portfolio management. This section deals
with the core finance related questions. Looking at the feasibility of the all students from different
stream of education background questions have been designed in objective type of questions.

DATA COLLECTION:

The study uses primary data. The information gathers first time by researchers for specific purpose is
called primary data which can be collected through observations, survey, interview, focus group
discussion etc Secondary data can be collected through magazines, newspaper, journals, articles, books,
government reports, databases of research institutes, published data available in libraries, census report
etc… and it is not used in this research.

PRIMARY DATA:

Most of time the primary data collected by questionnaire and interview method thus the chances of
originality and reliability of data is very high. It gives realistic view to the researcher about the topic. In
the present study primary data has been collected through well-structured questionnaire which was
developed by the help of Google forms and link was generated to send the respondents. All the questions
were structured in such a manner that they were simple, specified, clear, well organized and required
minimum written responses from the respondents. The questionnaire was administered to the college
going students in chennai district through online mode. questionnaires were distributed to the college
students of Chennai district in different stream of education. Out of this researcher get 231 filled
questionnaires out of which 16 were rejected due to insufficient information.

SECONDARY DATA

Secondary data refers to the existing collected and summarized material from the research papers and
publications. This data originates from sources such as databases, literature, journals and the internet.
To get insight into the research area and to develop the theoretical framework, hypotheses, the
information were collected from various books, magazines, reputed journals, newspapers, websites,
standard books, research projects, reports published by Reserve bank of India, Government and private

22 | P a g e
research firms at national and international level. Speeches and lectures of government officials and
policymakers around the world were also used as secondary data sources.

Tools used for data analysis

 Pie chart
 Bar Diagram

Pie chart

A pie chart is a type of graph that represents the data in a circular graph. The slices of pie show the
relative size of the data, and it is a type of pictorial representation of data. A pie chart requires a list of
categorical variables and numerical variables. Here, the term “pie” represents the whole, and the “slices”
represent the parts of the whole.

Bar diagram

Bar graphs are the pictorial representation of data (generally grouped), in the form of vertical or
horizontal rectangular bars, where the length of bars is proportional to the measure of data. They are
also known as bar charts. Bar graphs are one of the means of data handling in statistics.

Statistical tools used for the interpretation and analysis

 Tabulation method
 Percentage method

Tabulation method

The process of placing classified data into a tabular form is known as tabulation. A table is a symmetric
arrangement of statistical data in rows and columns. Rows are horizontal arrangements and columns are
vertical arrangements.

Percentage analysis

It refers to a special kind of ratio. This is used for making a comparison between 2 or more series of
data. It is denoted by percentage.

23 | P a g e
ANALYSIS AND PRESENTATION

As it has already been discussed that questionnaire has been divided into three section first part of
questionnaire deals with the demographic and socio economic profile of students. In this section
numerical coding were given. Second section of questionnaire was consist 25 statements which was
designed in likert type rating scale (Where 1= Strongly Disagree, 2 = Disagree, 3= Neutral, 4= Agree
and, 5 = Strongly Agree).

SUMMARY:

This chapter concerned with the research methodology adopted for the study. It includes introduction
of research methodology, rationale of the study, statement of the problem, objectives of the study, scope
of study, research design adopted for study and its type, sampling procedure, questionnaire
development, data collection methods and its type, analysis and presentation, and limitations of the
study. The next chapter focused on data analysis and interpretation.

24 | P a g e
CHAPTER 4

25 | P a g e
 DATA ANALYSIS AND INTERPRETATION

TABLE 4.1

Gender Frequency Percent

male 134 62.3

Female 81 37.7

Total 215 100.0

The above table shows the gender wise investigation of the data of the sample respondents reveal that
out of 215 sample respondents a majority 134 respondents of the sample size are male and 81
respondents are female.

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TABLE 4.2

Marital status Frequency Percent

married 211 98.1

unmarried 4 1.9

Total 215 100.0

The above table shows the marital status of the data of the sample respondents reveal that out of 215
sample respondents a majority 211 respondents of the sample size are unmarried and 4 respondents are
married.

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TABLE 4.3

Area of studies Frequency Percent

Engineering 68 31.6

Professional
3 1.4
courses

Arts and science 136 63.3

Others 8 3.7

Total 215 100.0

The above table shows the area of studies of the data of the sample respondents reveal that out of 215
sample respondents a majority 136 respondents of the sample size are arts and science followed by 68
respondents of the sample size are engineering, 8 are from others and 3 are from professional courses.

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TABLE 4.4

ANNUAL INCOME Frequency Percent

UPTO Rs50,000 117 54.4

50,000 to 1,00,000 52 24.2

1,00,000 to 1,50,000 15 7.0

Above 2,00,000 31 14.4

Total 215 100.0

The above table shows that the monthly income classification of the respondents.117 respondents are
in the category of upto50,000, 52 respondents are in the category of 50000-100000, 15 respondents are
in the category of 100000-150000, 31 respondents are coming under the category of more than 200000.

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TABLE 4.5

Education Frequency Percent

under graduation 153 71.2

post graduation 62 28.8

Total 215 100.0

From the above table it reveals the educational status of the sample respondents. Among that 153
respondents have qualification of under graduation and 62 respondents are post graduates.

30 | P a g e
TABLE 4.6

How did you attain financial knowledge

Frequency Percent

family 100 46.5

friends 41 19.1

social
74 34.4
media

Total 215 100.0

From the above table it reveals the source of financial knowledge of the sample respondents. Among
that 100 respondents are gained through family, followed by 41 are gained through friends and 74
respondents are attained through social media.

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TABLE 4.7

Mark your option for the following statements with regards to money management and according
to level of agreement pick your choice from the 5 point scale [I always estimate my daily expenses]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 6 2.8
Neutral 46 21.4
Agree 107 49.8
Strongly agree 53 24.7
Total 215 100.0

It is observed from the above table out of 215 respondents, 107 respondents agreed with the statement
followed by 53 respondents are strongly agreed with the statement, 46 respondents are neutral about
their decision, 6 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

TABLE 4.8
Mark your option for the following statements with regards to money management and according
to level of agreement pick your choice from the 5 point scale [I do track the record of daily
expenses]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 16 7.4
Neutral 58 27.0
Agree 92 42.8
Strongly agree 44 20.5
Total 215 100.0

It is observed from the above table out of 215 respondents, 92 respondents agreed with the statement
followed by 58 respondents are neutral about their decision, 44 respondents are strongly agree with the
statement 16 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

32 | P a g e
TABLE 4.9
Mark your option for the following statements with regards to money management and according
to level of agreement pick your choice from the 5 point scale [I prepare my monthly expenses
budget]
Frequency Percent
Strongly Disagree 6 2.8
Disagree 26 12.1
Neutral 50 23.3
Agree 78 36.3
Strongly agree 55 25.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 78 respondents agreed with the statement
followed by 55 respondents are strongly agreed with the statement, 50 respondents are neutral about
their decision, 26 respondents are disagree with the statement and 6 respondents among them are
strongly disagree with the statement.

TABLE 4.10
Mark your option for the following statements with regards to money management and according
to level of agreement pick your choice from the 5 point scale [I do comparison before taking
financial decision]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 5 2.3
Neutral 39 18.1
Agree 91 42.3
Strongly agree 77 35.8
Total 215 100.0

It is observed from the above table out of 215 respondents, 91 respondents agreed with the statement
followed by 77 respondents are strongly agreed with the statement, 39 respondents are neutral about
their decision, 5 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

33 | P a g e
TABLE 4.11
Mark your option for the following statements with regards to money management and according
to level of agreement pick your choice from the 5 point scale [I pay the bills before the due date]
Frequency Percent
Strongly Disagree 2 .9
Disagree 3 1.4
Neutral 25 11.6
Agree 99 46.0
Strongly agree 86 40.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 99 respondents agreed with the statement
followed by 86 respondents are strongly agreed with the statement, 25 respondents are neutral about
their decision, 3 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

34 | P a g e
TABLE 4.12
Mark your option for the following statements with regards to financial planning and according
to level of agreement pick your choice from the 5 point scale [I set aside money for future]
Frequency Percent
Strongly Disagree 1 .5
Disagree 6 2.8
Neutral 36 16.7
Agree 99 46.0
Strongly agree 73 34.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 99 respondents agreed with the statement
followed by 73 respondents are strongly agreed with the statement, 36 respondents are neutral about
their decision, 6 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

TABLE 4.13
Mark your option for the following statements with regards to financial planning and according
to level of agreement pick your choice from the 5 point scale [At any time, I have some money
saved for emergency]
Frequency Percent
Strongly Disagree 1 .5
Disagree 4 1.9
Neutral 43 20.0
Agree 102 47.4
Strongly agree 65 30.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 102 respondents agreed with the statement
followed by 65 respondents are strongly agreed with the statement, 43 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

35 | P a g e
TABLE 4.14
Mark your option for the following statements with regards to financial planning and according
to level of agreement pick your choice from the 5 point scale [Saving habits promote financial
planning]
Frequency Percent
Strongly Disagree 1 .5
Disagree 1 .5
Neutral 25 11.6
Agree 92 42.8
Strongly agree 96 44.7
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents strongly agreed with the
statement followed by 92 respondents are agreed with the statement, 25 respondents are neutral about
their decision, 1 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

TABLE 4.15
Mark your option for the following statements with regards to financial planning and according
to level of agreement pick your choice from the 5 point scale [Financial planning is needed even
for borrowing]
Frequency Percent
Disagree 6 2.8
Neutral 51 23.7
Agree 88 40.9
Strongly agree 70 32.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 88 respondents agreed with the statement
followed by 70 respondents are strongly agreed with the statement, 51 respondents are neutral about
their decision and 6 respondents are disagree with the statement.

36 | P a g e
TABLE 4.16
Mark your option for the following statements with regards to financial planning and according
to level of agreement pick your choice from the 5 point scale [ Financial planning includes savings,
investments and expenditure]

Frequency Percent
Strongly Disagree 1 .5
Disagree 2 .9
Neutral 25 11.6
Agree 93 43.3
Strongly agree 94 43.7
Total 215 100.0

It is observed from the above table out of 215 respondents, 94 respondents strongly agreed with the
statement followed by 93 respondents are agreed with the statement, 25 respondents are neutral about
their decision, 2 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

37 | P a g e
TABLE 4.17
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Are you aware of perception
definitions and theories of]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 16 7.4
Neutral 71 33.0
Agree 77 35.8
Strongly agree 47 21.9
Total 215 100.0

It is observed from the above table out of 215 respondents, 77 respondents agreed with the statement
followed by 71 respondents are neutral about their decision, , 47respondents are strongly agreed with
the statement, 16 respondents are disagree with the statement and 4 respondents among them are
strongly disagree with the statement.

TABLE 4.18
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Basic concepts of management of
money]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 7 3.3
Neutral 52 24.2
Agree 112 52.1
Strongly agree 40 18.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 112 respondents agreed with the statement
followed by 52 respondents are neutral with their decision, 40 respondents are strongly agreed with the
statement, 7 respondents are disagree with the statement and 4 respondents among them are strongly
disagree with the statement.

38 | P a g e
TABLE 4.19
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Understanding of financial terms
and concepts]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 9 4.2
Neutral 52 24.2
Agree 101 47.0
Strongly agree 49 22.8
Total 215 100.0

It is observed from the above table out of 215 respondents, 101 respondents agreed with the statement
followed by 52 respondents are neutral about their decision, 49 respondents are strongly agreed with
the statement, 9 respondents are disagree with the statement and 4 respondents among them are strongly
disagree with the statement.

TABLE 4.20
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Are you aware of risk return on
investments]
Frequency Percent
Strongly Disagree 2 .9
Disagree 16 7.4
Neutral 49 22.8
Agree 99 46.0
Strongly agree 49 22.8
Total 215 100.0

It is observed from the above table out of 215 respondents, 99 respondents agreed with the statement
followed by 49 respondents are strongly agreed with the statement, 49 respondents are neutral about
their decision, 16 respondents are disagree with the statement and 2 respondents among them are
strongly disagree with the statement.

39 | P a g e
TABLE 4.21
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Do you have financial knowledge of
safety, liquidity and risk return]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 8 3.7
Neutral 55 25.6
Agree 106 49.3
Strongly agree 42 19.5
Total 215 100.0

It is observed from the above table out of 215 respondents, 106 respondents agreed with the statement
,42 respondents are strongly agreed with the statement, 55 respondents are neutral about their decision,
8respondents are disagree with the statement and 4 respondents among them are strongly disagree with
the statement.

TABLE 4.22
Mark your option for the following statements with regards to financial knowledge and according
to level of agreement pick your choice from the 5 point scale [Do you have knowledge in stock
market]
Frequency Percent
Strongly Disagree 7 3.3
Disagree 21 9.8
Neutral 69 32.1
Agree 73 34.0
Strongly agree 45 20.9
Total 215 100.0

It is observed from the above table out of 215 respondents, 73 respondents agreed with the statement,
45 respondents are strongly agreed with the statement, 69 respondents are neutral about their decision,
21 respondents are disagree with the statement and 7 respondents among them are strongly disagree
with the statement.

40 | P a g e
TABLE 4.23
Mark your option for the following statements with regards to investment and according to level
of agreement pick your choice from the 5 point scale [I frequently use the media to seek
information about investments]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 6 2.8
Neutral 54 25.1
Agree 95 44.2
Strongly agree 57 26.5
Total 215 100.0
It is observed from the above table out of 215 respondents, 95 respondents agreed with the statement
followed by 57 respondents are strongly agreed with the statement,54 respondents are neutral about
their decision, 6 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

TABLE 4.24
Mark your option for the following statements with regards to investment and according to level
of agreement pick your choice from the 5 point scale [An investment with a high return is likely
to have higher risk than average risk]
Frequency Percent
Disagree 6 2.8
Neutral 54 25.1
Agree 98 45.6
Strongly agree 57 26.5
Total 215 100.0
41 | P a g e
It is observed from the above table out of 215 respondents, 98 respondents agreed with the statement,
53 respondents are strongly agreed with the statement, 46 respondents are neutral about their decision,
6 respondents are disagree with the statement and 3 respondents among them are strongly disagree with
the statement.

TABLE 4.25
Mark your option for the following statements with regards to investment and according to level
of agreement pick your choice from the 5 point scale [Investing in public sector is less risky]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 15 7.0
Neutral 67 31.2
Agree 90 41.9
Strongly agree 39 18.1
Total 215 100.0

It is observed from the above table out of 215 respondents, 90 respondents agreed with the statement 39
respondents are strongly agreed with the statement, 67 respondents are neutral about their decision, 15
respondents are disagree with the statement and 4 respondents among them are strongly disagree with
the statement.

TABLE 4.26
Mark your option for the following statements with regards to investment and according to level
of agreement pick your choice from the 5 point scale [Investing in private sector is risky compare
to public sector]
Frequency Percent
Strongly Disagree 1 .5
Disagree 11 5.1
Neutral 70 32.6
Agree 88 40.9
Strongly agree 45 20.9
Total 215 100.0

It is observed from the above table out of 215 respondents, 88 respondents agreed with the statement 45
respondents are strongly agreed with the statement, 88 respondents are neutral about their decision, 11
respondents are disagree with the statement and 1 respondents among them are strongly disagree with
the statement.

42 | P a g e
TABLE 4.27
Mark your option for the following statements with regards to investment and according to level
of agreement pick your choice from the 5 point scale [sound information leads to selecting the
good investments]
Frequency Percent
Strongly Disagree 2 .9
Disagree 6 2.8
Neutral 65 30.2
Agree 89 41.4
Strongly agree 53 24.7
Total 215 100.0

It is observed from the above table out of 215 respondents, 89 respondents agreed with the statement 53
respondents are strongly agreed with the statement, 89 respondents are neutral about their decision, 6
respondents are disagree with the statement and 2 respondents among them are strongly disagree with
the statement.

43 | P a g e
TABLE 4.28
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Financial literacy awareness
programmes]
Frequency Percent
Strongly Disagree 1 .5
Disagree 3 1.4
Neutral 59 27.4
Agree 96 44.7
Strongly agree 56 26.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents agreed with the statement 53
respondents are strongly agreed with the statement, 46 respondents are neutral about their decision, 6
respondents are disagree with the statement and 1 respondents among them are strongly disagree with
the statement.

TABLE 4.29
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Providing financial education to the
Students]
Frequency Percent
Strongly Disagree 1 .5
Disagree 4 1.9
Neutral 45 20.9
Agree 113 52.6
Strongly agree 52 24.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 113 respondents agreed with the statement
followed by 52 respondents are strongly agreed with the statement, 45 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

44 | P a g e
TABLE 4.30
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Financial literacy through radio and
television]
Frequency Percent
Disagree 8 3.7
Neutral 51 23.7
Agree 102 47.4
Strongly agree 54 25.1
Total 215 100.0

It is observed from the above table out of 215 respondents, 102 respondents agreed with the statement
54 respondents are strongly agreed with the statement, 51 respondents are neutral about their decision,
and 8 respondents are disagree with the statement.

TABLE 4.31
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Government and NGO's initiatives]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 11 5.1
Neutral 58 27.0
Agree 96 44.7
Strongly agree 46 21.4
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents agreed with the statement 46
respondents are strongly agreed with the statement, 58 respondents are neutral about their decision, 11
respondents are disagree with the statement and 4 respondents among them are strongly disagree with
the statement.

45 | P a g e
TABLE 4.32
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Pamphlets and booklets]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 9 4.2
Neutral 71 33.0
Agree 88 40.9
Strongly agree 43 20.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 88 respondents agreed with the statement 43
respondents are strongly agreed with the statement, 71 respondents are neutral about their decision, 9
respondents are disagree with the statement and 4 respondents among them are strongly disagree with
the statement.

TABLE 4.33
Mark your option for the following statements with regards to financial literacy and according to
level of agreement pick your choice from the 5 point scale [Seek advice from financial advisors]
Frequency Percent
Strongly Disagree 2 .9
Disagree 4 1.9
Neutral 52 24.2
Agree 96 44.7
Strongly agree 61 28.4
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents agreed with the statement
followed by 61 respondents are strongly agreed with the statement, 52 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

46 | P a g e
TABLE 4.34
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to control monthly
expenses]
Frequency Percent
Strongly Disagree 1 .5
Disagree 9 4.2
Neutral 25 11.6
Agree 94 43.7
Strongly agree 86 40.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 94 respondents agreed with the statement
followed by 86 respondents are strongly agreed with the statement, 25 respondents are neutral about
their decision, 9 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

47 | P a g e
TABLE 4.35
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to establish financial
targets for the future]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 2 .9
Neutral 38 17.7
Agree 102 47.4
Strongly agree 70 32.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 102 respondents agreed with the statement
followed by 70 respondents are strongly agreed with the statement, 38 respondents are neutral about
their decision, 3 respondents are strongly disagree with the statement and 2 respondents among them
are disagree with the statement.

TABLE 4.36
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to save money on a
monthly basis]
Frequency Percent
Strongly Disagree 2 .9
Disagree 4 1.9
Neutral 30 14.0
Agree 96 44.7
Strongly agree 83 38.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents agreed with the statement
followed by 83 respondents are strongly agreed with the statement, 30 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

48 | P a g e
TABLE 4.37
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to stay within the
budget]
Frequency Percent
Strongly Disagree 2 .9
Disagree 8 3.7
Neutral 41 19.1
Agree 95 44.2
Strongly agree 69 32.1
Total 215 100.0

It is observed from the above table out of 215 respondents, 95 respondents agreed with the statement
followed by 69 respondents are strongly agreed with the statement, 41 respondents are neutral about
their decision, 8 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

TABLE 4.38
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to invest regularly to
achieve targets in the long term]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 5 2.3
Neutral 35 16.3
Agree 100 46.5
Strongly agree 72 33.5
Total 215 100.0

It is observed from the above table out of 215 respondents, 100 respondents agreed with the statement
followed by 72 respondents are strongly agreed with the statement, 35 respondents are neutral about
their decision, 5 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

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TABLE 4.39
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [It is important to have and follow a
monthly expense plan]
Frequency Percent
Disagree 4 1.9
Neutral 46 21.4
Agree 99 46.0
Strongly agree 66 30.7
Total 215 100.0

It is observed from the above table out of 215 respondents, 99 respondents agreed with the statement
followed by 66 respondents are strongly agreed with the statement, 46 respondents are neutral about
their decision and 4 respondents are disagree with the statement.

TABLE 4.40
Mark your option for the following statements with regards to financial attitude and according to
level of agreement pick your choice from the 5 point scale [The way i manage my money today
will affect my future]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 8 3.7
Neutral 34 15.8
Agree 97 45.1
Strongly agree 73 34.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 97 respondents agreed with the statement
followed by 73 respondents are strongly agreed with the statement, 34 respondents are neutral about
their decision, 8 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

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TABLE 4.41
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I have monthly financial planning
and observed it strictly]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 4 1.9
Neutral 39 18.1
Agree 100 46.5
Strongly agree 67 31.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 100 respondents agreed with the statement
followed by 67 respondents are strongly agreed with the statement, 39 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

TABLE 4.42
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I always review my spending]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 1 .5
Neutral 41 19.1
Agree 106 49.3
Strongly agree 62 28.8
Total 215 100.0

51 | P a g e
It is observed from the above table out of 215 respondents, 106 respondents agreed with the statement
followed by 62 respondents are strongly agreed with the statement, 41 respondents are neutral about
their decision, 1 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

TABLE 4.43
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I record every expense]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 9 4.2
Neutral 45 20.9
Agree 89 41.4
Strongly agree 67 31.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 89 respondents agreed with the statement
followed by 67 respondents are strongly agreed with the statement, 45respondents are neutral about
their decision, 9 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

TABLE 4.44
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I save every month]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 9 4.2
Neutral 38 17.7
Agree 98 45.6
Strongly agree 67 31.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 98 respondents agreed with the statement
followed by 53 respondents are strongly agreed with the statement, 46 respondents are neutral about
their decision, 6 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.
52 | P a g e
TABLE 4.45
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I always review my financial
position]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 10 4.7
Neutral 42 19.5
Agree 96 44.7
Strongly agree 64 29.8
Total 215 100.0

It is observed from the above table out of 215 respondents, 96 respondents agreed with the statement
followed by 64 respondents are strongly agreed with the statement, 42 respondents are neutral about
their decision, 10 respondents are disagree with the statement and 3 respondents among them are
strongly disagree with the statement.

TABLE 4.46
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [Investment is very important matter
to me]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 3 1.4
Neutral 37 17.2
Agree 101 47.0
Strongly agree 70 32.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 101 respondents agreed with the statement
followed by 70 respondents are strongly agreed with the statement, 37 respondents are neutral about
their decision, 3 respondents are disagree with the statement and 4 respondents among them are strongly
disagree with the statement.

53 | P a g e
TABLE 4.47
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [ I have savings that can be used in
case of emergency]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 8 3.7
Neutral 35 16.3
Agree 108 50.2
Strongly agree 61 28.4
Total 215 100.0

It is observed from the above table out of 215 respondents, 108 respondents agreed with the statement
followed by 61 respondents are strongly agreed with the statement, 35 respondents are neutral about
their decision, 8 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

TAB;E 4.48
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I establish long term financial targets
that influence the management of my expenses]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 1 .5
Neutral 50 23.3
Agree 91 42.3
Strongly agree 69 32.1
Total 215 100.0

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It is observed from the above table out of 215 respondents, 91 respondents agreed with the statement
followed by 69 respondents are strongly agreed with the statement, 50 respondents are neutral about
their decision, 1 respondents are disagree with the statement and 4 respondents among them are strongly
disagree with the statement.

TABLE 4.49
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I am very cautious with my spending]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 4 1.9
Neutral 37 17.2
Agree 99 46.0
Strongly agree 70 32.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 99 respondents agreed with the statement
followed by 70 respondents are strongly agreed with the statement, 37 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

TABLE 4.50
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I am satisfied with the way I control
my finance]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 4 1.9
Neutral 44 20.5
Agree 95 44.2
Strongly agree 68 31.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 95 respondents agreed with the statement
followed by 68 respondents are strongly agreed with the statement, 44 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 4 respondents among them are strongly
disagree with the statement.

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TABLE 4.51
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I save so that I can buy something
expensive (eg. smartphones, laptop etc...)]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 8 3.7
Neutral 46 21.4
Agree 100 46.5
Strongly agree 56 26.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 100 respondents agreed with the statement
followed by 56 respondents are strongly agreed with the statement, 46 respondents are neutral about
their decision, 8 respondents are disagree with the statement and 5respondents among them are strongly
disagree with the statement.

TABLE 4.52
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I compare prices when buying
something]
Frequency Percent
Strongly Disagree 3 1.4
Disagree 7 3.3
Neutral 27 12.6
Agree 95 44.2
Strongly agree 83 38.6
Total 215 100.0

It is observed from the above table out of 215 respondents, 95 respondents agreed with the statement
followed by 83 respondents are strongly agreed with the statement, 27 respondents are neutral about
their decision, 7 respondents are disagree with the statement and 3 respondents among them are strongly
disagree with the statement.

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TABLE 4.53
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I analyze my financial situation
before I do a major purchase]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 4 1.9
Neutral 36 16.7
Agree 94 43.7
Strongly agree 76 35.3
Total 215 100.0

It is observed from the above table out of 215 respondents, 94 respondents agreed with the statement
followed by 76 respondents are strongly agreed with the statement, 36 respondents are neutral about
their decision, 4 respondents are disagree with the statement and 5 respondents among them are strongly
disagree with the statement.

TABLE 4.54
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I do things impulse (without thinking
about the results)]
Frequency Percent
Strongly Disagree 9 4.2
Disagree 17 7.9
Neutral 52 24.2
Agree 85 39.5
Strongly agree 52 24.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 85 respondents agreed with the statement
followed by 52 respondents are strongly agreed with the statement, 52 respondents are neutral about
their decision, 17 respondents are disagree with the statement and 9 respondents among them are
strongly disagree with the statement.

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TABLE 4.55
Mark your option for the following statements with regards to financial behaviour and according
to level of agreement pick your choice from the 5 point scale [I prefer buying financial products
(share/stock/debenture) for anticipating decent profit]
Frequency Percent
Strongly Disagree 4 1.9
Disagree 13 6.0
Neutral 52 24.2
Agree 90 41.9
Strongly agree 56 26.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 90 respondents agreed with the statement
followed by 56 respondents are strongly agreed with the statement, 52 respondents are neutral about
their decision, 13 respondents are disagree with the statement and 4 respondents among them are
strongly disagree with the statement.

TABLE 4.56
Investment options you are aware of [Shares]
Frequency Percent
Strongly Disagree 2 .9
Disagree 7 3.3
Neutral 56 26.0
Agree 78 36.3
Strongly agree 72 33.5
Total 215 100.0

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It is observed from the above table out of 215 respondents, 78 respondents agreed with the statement
followed by 72 respondents are strongly agreed with the statement, 56 respondents are neutral about
their decision, 7 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

TABLE 4.57
Investment options you are aware of [mutual funds]
Frequency Percent
Strongly Disagree 7 3.3
Disagree 13 6.0
Neutral 72 33.5
Agree 80 37.2
Strongly agree 43 20.0
Total 215 100.0

It is observed from the above table out of 215 respondents, 80 respondents agreed with the statement,
72 respondents are strongly agreed with the statement, 43 respondents are neutral about their decision,
13 respondents are disagree with the statement and 7 respondents among them are strongly disagree
with the statement.

TABLE 4.58
Investment options you are aware of [Gold]
Frequency Percent
Strongly Disagree 1 .5
Disagree 2 .9
Neutral 43 20.0
Agree 100 46.5
Strongly agree 69 32.1
Total 215 100.0

It is observed from the above table out of 215 respondents, 100 respondents agreed with the statement
followed by 69 respondents are strongly agreed with the statement, 43 respondents are neutral about
their decision, 2 respondents are disagree with the statement and 1 respondents among them are strongly
disagree with the statement.

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TABLE 4.59
Investment options you are aware of [crypto currencies]
Frequency Percent
Strongly Disagree 6 2.8
Disagree 25 11.6

Neutral 83 38.6
Agree 60 27.9
Strongly agree 41 19.1
Total 215 100.0

It is observed from the above table out of 215 respondents, 60 respondents agreed with the statement,
41 respondents are strongly agreed with the statement, 83 respondents are neutral about their decision,
25 respondents are disagree with the statement and 6 respondents among them are strongly disagree
with the statement.

TABLE 4.60
Investment options you are aware of [Bonds]
Frequency Percent
Strongly Disagree 5 2.3
Disagree 13 6.0
Neutral 84 39.1
Agree 69 32.1
Strongly agree 44 20.5
Total 215 100.0

It is observed from the above table out of 215 respondents, 69 respondents agreed with the statement 44
respondents are strongly agreed with the statement, 84 respondents are neutral about their decision, 13
respondents are disagree with the statement and 5 respondents among them are strongly disagree with
the statement.

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TABLE 4.61
Investment options you are aware of [Fixed deposits]
Frequency Percent
Strongly Disagree 2 .9
Disagree 9 4.2
Neutral 55 25.6
Agree 82 38.1
Strongly agree 67 31.2
Total 215 100.0

It is observed from the above table out of 215 respondents, 82 respondents agreed with the statement
followed by 67 respondents are strongly agreed with the statement, 55 respondents are neutral about
their decision, 9 respondents are disagree with the statement and 2 respondents among them are strongly
disagree with the statement.

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TABLE 4.62

Do you earn passive income

Frequency Percent

Yes 81 37.7

No 134 62.3

Total 215 100.0

The above table shows the passive income of the data of the sample respondents reveal that out of 215
sample respondents a majority of 134 respondents of the sample size don’t have passive income and 81
respondents have passive income.

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TABLE 4.63

The financial products you possess

Frequency Percent

fixed
63 29.3
account

mutual
25 11.6
funds

credit card 112 52.1

shares 15 7.0

Total 215 100.0

The above table shows the possession of the financial products of the data of the sample respondents
reveal that out of 215 sample respondents a majority 112 respondents of the sample size have credit
card followed by 63 respondents have fixed account, 25 respondents have mutual funds and 15
respondents posses shares..

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TABLE 4.64

Whose credit card do you use

Frequency Percent

my own 45 20.9

my parents 44 20.5

both 7 3.3

None (I don't use credit

119 55.3
card)

Total 215 100.0

The above table shows the usage of credit card of the data of the sample respondents reveal that out of
215 sample respondents a majority of 119 respondents of the sample size don’t use the credit card
followed by 45 respondents using their own credit card, 44 of the respondents using their parent’s credit
card and remaining 7 respondents use both parents as well as their own credit card.

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TABLE 4.65

where did you learn most about managing your money

Frequency Percent

At home from my family 136 63.3

At class 31 14.4

from magazines, books, tv and the

24 11.2
radio

From experience in managing own

24 11.2
fund

Total 215 100.0

The above table shows from where the respondents learn about managing their money. It is revealed
that out of 215 sample respondents majority of 136 respondents of the sample size have learned at home
from their family followed by 31 respondents have learned at class, 24 respondents have learned from
magazines, books, TV, and radio and remaining 24 have learned from the experience in managing their
own funds.

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TABLE 4.66

I pay my credit card bills on time each month and am almost never later

Frequenc Percent
y

Never 70 32.6

Rarely 27 12.6

sometime
37 17.2
s

Usually 19 8.8

Always 62 28.8

Total 215 100.0

It is observed from the above table 5.21 out of 100 respondents, 34 respondents rank other organic home
needs as very good, further 36 respondents rank as good, 22 respondents rank it as moderate and only 8
respondents among them ranks it is as same as non-organic.

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TABLE 4.67

Do you prepare monthly budget, do you stick to it

Preparation Frequency Percent

of monthly
budget

yes 128 59.5

no 87 40.5

Total 215 100.0

The above table shows the preparation of monthly budget of the data of the sample respondents reveal
that out of 215 sample respondents a majority 128 respondents of the sample size are preparing their
monthly budget and 87 respondents are not preparing their monthly budget

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TABLE 4.68

Percentage of money you save

Saving Frequency Percent

percentage
Per month

10-20% 76 35.3

20-30% 63 29.3

Above 30% 55 25.6

Don't save at
21 9.8
all

Total 215 100.0

The above table shows the savings percentage of the data of the sample respondents reveal that out of
215 sample respondents a majority of 76 respondents of the sample size will save from 10% to 20%
followed by 63 respondents will save from 20% to 30% , 55 respondents will save 30% of their money
and 21 respondents don’t save at all.

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TABLE 4.69

Which investment method you will choose

Investment Frequency Percent

method

Regularly 129 60.0

Occasional
67 31.2
ly

Lumpsum 19 8.8

Total 215 100.0

The above table shows the investment method of the data of the sample respondents reveal that out of
215 sample respondents a majority 129 respondents of the sample size have chosen regular investment
methods followed by 67 respondents have chosen occasionally investment method and 19 respondents
have chosen lumpsum investment method.

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TABLE 4.70

What is your investment period

Investme Frequency Percent

nt period

Short
114 53.0
term

Long
101 47.0
term

Total 215 100.0

The above table shows the investment period of the data of the sample respondents reveal that out of
215 sample respondents a majority 114 respondents of the sample size have opted for short term period
and 101 respondents are opted for long term period.

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TABLE 4.71

Whom do you consult before making an investment

Consultant Frequency Percent

Experts 71 33.0

Family 119 55.3

Friends 25 11.6

Total 215 100.0

From the above table it reveals that, majority of 119 respondents will consult with their family followed
by 71 respondents with experts and 25 with their friends.

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CHAPTER 5

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 CONCLUSION

MAJOR FINDINGS OF THE STUDY:

Empirical evidence helps to establish meaningful and logical findings and the outcome of the study.
The major findings of the study are explained in a detailed manner. The results are presented below:
Findings related to Demographic Profile

 Majority (62.30%) of the respondents are male and 37.70% of them are female.
 Majority (98.10%) of the respondents are single and 1.9% are married.

 A sizeable portion of the respondents families earn annual income above Rs.2,00,000 (14.80%)
followed by income above Rs. 2,00,000 (36.0%), between Rs.50,001 andRs.1,00,000 (24.2%),
Rs.1,00,001 and 1,50,000 (7.1%) and income up to Rs.50,000 (54.00%).
 Majority of the respondents (63.30%) are from arts and science. 68 respondents (31.60%) are from
engineering while (3.70%) are from other courses and only 3 respondents (9.30%) are from professional
courses.

Findings Related to Financial Profile

 A sizable portion of the respondents are learning money management at home 63.60% (ie., from their
family), own experience in managing funds (11.2%), discussion with friends (10.7%), magazines, TV
and radio (2.4%) and through classroom discussion (14.5%).
 Majority (59.80%) of the respondents are preparing any budgets and rests of them are preparing the
budget (40.2%).

 A sizable portion (35.00%) of the respondents save between 10% and 20% of their annual income.
29.40% of the respondents save between 20% and 30% besides the fact that 25.70% of the respondents
have reported saving above 30% from their annual income. It is also important to note that 9.8% of the
respondents do not save at all.
 20.2% of respondents do rarely discuss financial matters at home while 41.30% of the respondents do
discuss often. 29.6% of the respondents discuss very often. Only 8.9% of the respondents never discuss
financial matters.

Findings related to Financial Products Usage:

 A major chunk of the respondents (10.30%) do possess credit card. 11.70% have reported possessing
mutual funds and stocks while 29.40% reported keeping fixed deposit account and 41.6% of the
respondents have reported not possessing any financial products.
 A sizable portion of the respondents 55.10% are not using any credit card followed by 25.95%
respondents using parents credit card, 20.80% of the respondents using own credit card. Only 4.0% of
the respondents have reported using both own and parents credit card. Chapter - V Summary of Major
Findings, Suggestions and Conclusion.
73 | P a g e
SUGGESTIONS:
Based on the observations of the study, the researcher suggested a few measures to enhance financial
literacy of college students for the enrichment their financial knowledge & attitude. Similarly, a few
recommendations have also been suggested to institutions to focus and train students for enhancing the
knowledge of the students in in financial matters. The suggestions are:

 Respondents should prepare and adopt budgets in order to improve basic money management skills.

 Respondents should have visionary thinking for understanding the nuances of money management.

 Respondents should cultivate better savings expenditure and investment attitudes for getting and
improving strategic financial planning skills and they should effectively evaluate short-term and long-
term goals for effective of financial discipline.

 Respondents should be cautious of money spending and balanced investment safer returns to meet
future financial emergency situation.

 Respondents should cultivate the habit of learning more so that they can do analytical thinking and
optimum utilisation of finance to enhance and enrich their financial knowledge and behaviour.

 Respondents should primarily focus on applicability and acceptability of financial knowledge instead
of comparing the risk and returns.

 Better enhancement in financial literacy is possible only through proper investigation, prompt advice,
effective communication and periodical assessment of financial matters and dealings.

 Budget evaluation, budget prediction, optimum utilisation of resources and application of financial
literacy play a vital role in determining the financial attitude of college students. So, they are suggested
to focus these aspects for their betterment in financial behaviour.

 Budget preparation, evaluation, acceptance, awareness, applicability and analytical thinking will drive
them to nurture financial knowledge and behaviour.

 college students should enhance their financial literacy through better acquisition of knowledge in
their respective institutions to enrich their financial knowledge and behaviour.

IMPLICATION OF THE STUDY:

Many countries are adopting strategies for financial education. India has a vast population consisting of
predominantly young. Thanks to globalisation on the one hand, there are many instruments available
and on the other hand people are ready to experiment. The first prerequisite is to make know/aware
about the young mind first to understand the market, instruments, players and risk return which will
definitely help them to make informed choices. The young mind will reap good dividends for the
following reasons.

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EXPOSURE:
The present generation, keeps information at fingertips. There is no dearth of knowledge and they need
to be guided so as to select appropriate sources, interpret and make right choices.

KNOWLEDGE INCREASES CONFIDENCE:

Market is flooded with complex products. Unless otherwise one is equipped with knowledge and skill
it will be difficult to manage the portfolio. Financial literacy not only boosts confidence but also reduces
the dependence on others.

PROTECTION FROM EXPLOITATION:

Financial literacy enables to read between the lines and guide them to look out for the right data. This
acts as protective shield and to keep away from the lofty promises.

VALUE OF MONEY:
Financial literacy enables a person to get value for money in two ways. i. Through informed choices,
he/she will be able to choose the right instrument balancing risk-return. So one will not put everything
in one basket but in a portfolio. ii. Also avoid over indebtness and exploitation by money lenders.
Financial education will reduce the dependence on those who charge exorbitant rate which eats away
their hard earned money.

PARTICIPATION IN FINANCIAL MARKET AND ECONOMIC GROWTH:

Financial educations will throw light on alternative investment opportunities. Traditionally people
prefer investing in gold. From the point of view of economic growth it amounts to locking up one’s
money. Financial education enables to invest in other sources like shares, mutual funds etc., and
eventually the economy will grow with GDP.

INSURE FROM CRISIS:

One of the major reasons for financial crisis is lack of awareness of financial products. Some are
reluctant to enter formal channels and overburdened with debt. In some case the interest charged will
be more than the money borrowed eventually resulting in loss of property and also self pride.

SPIRALING EFFECT:
Poor management of finance is the main reason for suicides/self immolation. This will affect individual
family and the society at large.

REMEDIES:
What needs to be carried out for the overall welfare and the growth of the economy?
Understanding financial product is art of learning things from the new financial markets. It involves
analysing the existing financial position, expected future returns, and matches the financial objectives
to develop an ample financial planning roadmap. It is aimed at making available the right amounts of
funds at the right time in the future. For instance, unfortunate financial issues will be covered by proper
plan and need not dig into savings and other investments.

2. Catch them young as it is very early to change: It is important to teach children and youngsters about
saving & spending money wisely and there is no set of rules or methods. Parents should follow a

75 | P a g e
balanced and systematic approach to make them aware of the future. What we learn about today will be
helpful for tomorrow. Some of the financially savvy parents tend to teach their children the important
aspects of money including earning and saving from early age using proper innovative financial
techniques. Parent’s attitudes towards money inevitably have a deep influence on their young adults.
The young adults only believe in spending and they are not interested in saving. Everybody lives in a
world of instant gratification and people are not averse to enjoying life on borrowed money. For this
reason that financial literacy should start very early to catch the young age to change their behaviour.

3. Inculcate the importance of financial education: Institutions should inculcate the importance of the
financial education in the minds of the youngster at the right time to grow them up financially literates.
It provides access for all the students to gain financial knowledge and skills. Financial education
addresses the importance in reaching all students. Based on that financial institution to undertake
financial education to various target peoples like, school students, college students, homemakers, retired
personnel, selfhelp groups etc., Therefore, it is necessary for schools, banks and financial institutions to
step into a more proactive role to shaping up right attitude towards money. Institution such as RBI,
SEBI, Banks and Other stakeholders (NGO’s and financial agencies) should create more awareness with
respect to financial literacy for the betterment and enhancement in people’s financial behaviour.

4. Molding youngster to transform: The world is changing and changing fast. Youngsters are the most
important and dynamic of the populace in any country. It is believed that developing countries with
large youth population could see tremendous growth; they invest in young people’s educate them in
right way. Today’s youngsters are tomorrow’s innovators, creators and leaders. They need the required
support in terms of good education and financial skills to transform the future.

5. Youngsters are tech savvy and the information can react: Use of modern technology has seriously
taken off at exponential rates. The complicated financial problems can be cut down through technology.
The tech savvy gives the information to the youngsters to make better financial decisions and the
practical advice on the aspects of financial education, financial decisions, savings, investing, inflation,
bank accounts and so on. The youngsters can learn their own pace with adequate information through
tech savvy and react the particular situations. Technologies make them to aware and allow
children/young adults to save money, invest, and improve their financial position.

CONCLUSION:
In the globalised environment, the economic growth of the country will be measured on the basis of the
financial strength of the citizens. The citizens can become financially sound only through the financial
knowledge and behaviour. Plethora of studies have been conducted in the rest of world countries and a
very few studies are available on Indian context. The present study concentrated on the basic
components of financial literacy. Financial literacy is closely related to the well-being of the individual.
Financial knowledge and skills in managing personal finance are very important in everyone’s life.
Financial difficulties are not just a function of income only (low income). Financial difficulties may
also arise in the event of mismanagement such as misuse of credit and lack of financial planning.
Financial limitations can cause stress, and low self-esteem. Financial knowledge and financial literacy
will help the individual in managing personal finance for real value for money so that benefits obtained
by the individuals will be greater.

76 | P a g e
The study revealed that respondents are financially literates in the context of behaviour and knowledge.
The sample respondents are quiet aware of various components of financial literacy such as basic money
management, financial planning, investment decision and financial attitude. The study implies that
higher the rate of financial literacy, higher the financial knowledge & behaviour will be and vice-versa.
To conclude, the education system in India should emphasis on financial literacy enhancement by
primarily focusing on youngsters by providing a relevant material on financial literacy in their general
educational programs/curriculum to develop personal and the overall growth of the economy.

“Do not save what is left after spending, but spend what is left after saving”
-Warren Buffet

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BIBLOGRAPHY

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Abreu, M., & Mendes, V. (2010). Financial literacy and portfolio diversification. Quantitative finance,
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Adam Balint.,Annamaria Kokeny Horvathne., (2013). Saving Habits of Hungarian College Students,
European Scientific Journal, ISSN: 1857 - 7881, December 2013 Vol.9, No.34. pp. 83-92

Ambrose Jagongo., Vincent S. Mutswenje. (2014). A Survey of the Factors Influencing Investment
Decisions: The Case of Individual Investors at the NSE. International Journal of Humanities and Social
Science, ISSN 2220-8488, Vol. 4 No. 4 [Special Issue-February 2014, pp. 92-102

Amer Azlan Abdul Jamal, Wijaya Kamal Ramlan, Rosle Mohidin and Zaiton Osman. (2016).
Determinants of Savings Behaviour among University Students in Sabah, Malaysia. International
Journal of Accounting, Finance and Business, Volume: 1 Issue: 1 [September, 2016] pp.24-37

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