FINANCIAL ANALYSIS OF RELIANCE INDUSTRY LIMITED

BACHELOR OF MANAGEMENT STUDIES

SEMESTER VI

SUBMITTED
IN PARTIAL FULFILMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE OF BACHELOR OF MANAGEMENT STUDIES

BY

ANUSHKA BHALCHANDRA PATIL

SEAT NO: M.18.119

2020-2021

SIES (NERUL) COLLEGE OF ARTS SCIENCE AND COMMERCE

SRI CHANDRASEKARENDRA
SARASWATI VIDYAPURAM, PLOT I-C,
SECTOR V, NERUL, NAVI MUMBAI, MAHARASHTRA 400706.

1
 CERTIFICATE

This is to certify that MS. ANUSHKA BHALCHANDRA PATIL, M.18.119

of Third Year B.M.S., Semester VI (2020- 2021) has successfully completed the
project on

FINANCIAL ANALYSIS OF RELIANCE INDUSTRY LIMITED Under the

guidance of PROF.NEERA KUMAR

PROF. ANANYA GON DR. MILIND VAIDYA

HEAD OF DEPARTMENT PRINCIPAL

PROF. NEERA KUMAR

Project Guide/
Internal Examiner External Examiner
 ACKNOWLEDGEMENT

I, Ms. Anushka Bhalchandra Patil take this opportunity to express my profound gratitude and
deep

Regards to MUMBAI UNIVERSITY, all my teachers for their exemplary guidance,

Providing me an Opportunity to study on FINANCIAL ANALYSIS OF
RELIANCE INDUSTRY LIMITED

This has been an enormous learning experience.

I pay my sincere thanks to DR. MILIND VAIDYA, PRINCIPAL SIES Nerul.

I pay my deep sense of gratitude to Ms. NEERA KUMAR of SIES Nerul to encourage me to
take this opportunity to prepare this project. She was a guiding force to me while doing this
project.

I am immensely obliged to my friends for their inspiration, encouraging guidance, providing

their help as when required to complete this project.

My Special thanks to my seniors for sharing their views and providing vital inputs for my
report.

Without their support and encouragement, making this report would have been difficult for
me.

Last, but not the least my parents were important inspiration to me, I express my sincere
gratitude to them.
 DECLARATION
I ANUSHKA BHALCHANDRA PATIL student of Third Year Bachelor of Management Studies
of

SIES College of Arts, Science & Commerce, Nerul, Navi Mumbai, 400706 declare that I have

Completed the project on the working of on FINANCIAL ANALYSIS OF RELIANCE

INDUSTRY LIMITED

In the academic year 2020-2021 as per requirement of

Mumbai University as a part of Bachelors in Management Studies (BMS) Program

The information presented in this project is accurate and original to the best of my knowledge.

Date: / /

Place: Navi Mumbai Name and Sign of Student

MS.ANUSHKA BHALCHANDRA PATIL

SEAT NO – M.18.119
 SIES (NERUL) COLLEGE OF ARTS SCIENCE AND
COMMERCE NERUL, NAVI MUMBAI, 400706.
INDEX

Sr. Chapter Name Page No.

No.
1 ABSTRACT 6
2 INTRODUCTION 7 - 17
 What is investment?
 Importance of financial inclusion
 Objectives of study
 Scope of study
 Limitations of study
18 - 20
3 LITERATURE REVIEW

21 - 22

4 RESEARCH METHODOLOGY
 Primary data
 Secondary data
 Questionnaire
 Hypothesis

5 DATA ANALYSIS AND INTERPRETATION 30 – 67

6 CONCLUSIONS 64 - 67

7 FINDINGS 68 -- 70

8 RECOMMENDATIONS & SUGGESTIONS 71 - 73

9 BIBLIOGRAPHY 74

10 QUESTIONNAIR 75 - 77
CHAPTER 1

ABSTRACT

The project assigned to me was to study the financial health of any organization in the country. I decided to choes Indias’s largest
CHAPTER 2

1.1 INTRODUCTION

Saving and Investment serve as crucial two pillars in the economic development of India. Banks
as well as financial institutions mobilize people’s savings as capital to potential investors that
produce goods and services. They are intermediaries that bring savers and investors together.
Thus development in banking is brought about by growth in saving and investment in any
economy. Banks have extended its scope beyond the routine activity of taking deposits and
lending to different sections of society. Banks not only pays interest on the deposits but also
creates awareness among people towards savings. The nation is benefited when people save as
same is used for nation’s building. Commercial banks play a significant role in realization,
mobilization, channelization and utilization of savings from non-productive to productive
purposes.

The expansion, contraction and level of business activities are largely dependent upon the
policies framed by banks. Commercial banks provide finances and credit to traders and
industrialists not only for domestic trade but also extend their help for foreign trade. Through the
introduction of bank branching system, banks can deploy credit to priority sectors, rural and
neglected areas. Bank promote new entrepreneurs, new companies and also provide finance to
sick industries for making them viable. It also extends help to small traders, small
manufacturers, marginal and small farmers, artisans, small transport operators and exporters.
Thus banks are playing dynamic role in economic development of our nation.

Technology has changed the face of banking especially in the areas of debit/credit cards, core
banking solutions, Internet banking and mobile banking. With reduced corporate borrowing,
banks have diverted the focus on retail banking. Most banks are aggressive on lending to
personal finances, consumer finance, housing sector and education sector. Banks are further
exploring new sources for generating revenues such as Banc assurance, the distribution of
insurance products. They have also tied up with multiple mutual fund houses to distribute their
products. Banks are also covering the other aspects like wealth management, depository and on-
line trading services, collection of taxes, utility bills etc.

Development of banking sector and growth of saving and investment are positively co-related,
the latter being largely dependent upon the power of people to save and on their will to save.
There is a need to implement an extensive and systematic strategy to stimulate saving and
banking habits in all segments. “The banking habit, being a habit, has to be inculcated, cultivated
and developed from boyhood” and efforts must be taken in collaboration with school and
colleges “to promote thrift among young men and women, and the encouragement of such
practical thrift would be desirable in every way.

Stating objectively, financial inclusion can hold key to India’s economic development
specifically by eradication of poverty and social upliftment of the deprived sections. The United
Nations Population Fund’s (UNFPA) State of World’s Population report 2014 state that India
has world’s largest youth population with 356 million, compared to that in China. According to
UNFPA projections, India will continue to have one of the youngest populations in the world till
2030. It further explains that “India’s youth face several developmental challenges, including
access to education, gainful employment, gender inequality, child marriage, youth-friendly
health services and adolescent pregnancy. Yet with investments in their participation and
leadership, young people can transform the social and economic fortunes of the country.”
(UNFPA India)

As per the above data, 28% of India’s population is youth and it is among the developing
countries in the world. There is lot of potential to be tapped in the economic and social
advancement of the nation. But it all depends on how the issue related to youth is addressed and
to guide them to define nation’s common future. To guide youth in the right direction, it is
important to understand their financial status and saving, banking and investment habits.
Youth living in urban India has better living conditions as compared to rural youth with regards
to access to education, sanitary facilities, pucca homes, good health care, internet, access to bank
branches, ATM’s etc. Though there is an access to education, it is not skill based or employment
driven. At some of the courses education is not affordable as huge part of urban population is
still belonging to middle and lower class. There is also discrimination in educational quality
which is categorized by financial status. In urban areas youth unemployment is on rise. Most of
the young graduates struggle to get the job in their respective field. Even after obtaining multiple
degrees, many times they have to accept low salaried job. There are other problems like
depression, substance and alcohol abuse, stress of academic performance, relationship problems,
body image, and corruption and so on. Once out of college, parents expect kids to learn how to
spend money and also ready for life changes.

With the revolution in the retail sector in India and advent of mall culture, the spending and
saving habits of youth have changed over the years. An over exposure to marketing
communication activities of the companies, the youth has turned to be more brand conscious and
also spend a considerable amount of their income on entertainment and gadgets. With the
increase in spending power of adults, even the young have become free-hand spenders and
spendthrifts in some cases. This study address the question of why, where, and how the youth
spend? The youth referred to here are college students in under graduation and post graduation.
The age group of 15-25 years is that part of the society which is immortalized in advertisements.
The west depicts this youth as financially and emotionally free, but in India the case is not the
same. Despite being financially dependent on the parents till about an age of 15-25 years, there
is a radical difference observed in the spending behavior of the youth of our country.

Youth savings accounts are one tool with the potential to encourage both youth development and
financial inclusion possibly even in a financially sustainable way. For individuals, a financial
cushion such as savings is clearly useful in mitigating the impact of economic shocks. Research
has shown that making formal sector savings accounts available can boost this financial cushion
among both youth and adults. Research and experience to date suggest that savings accounts for
low-income youth may be a high- leverage tool to achieve both youth development and financial
inclusion objectives.
The study has been undertaken to analyses the spending and saving habit of college students
especially in Navi Mumbai. The main reason behind the study is the youth spend more than their
income and saving habit is declining. This study shows the various spending and saving avenues
for youth and how they maintain their financial requirements with limited income and high
expenses.

A nation’s productive capacity depends on a healthy capital formation. Robust savings rate
coupled with good capital mobilization are the key macro economic variables with micro
foundations, which play a significant role in economic growth. Since the domestic saving rate is
directly related to the investment rate and the lending capacity of the banking system, it is also
an important indicator of economic development. A nation's savings and investment propensities
also play a key role in achieving dynamic stability in the capital market.

Saving and financial planning are two important determinants for future financial well-being.
Financially dependent youth seek support from their parents which in turn depends on their
financial status. Some start working to become financially independent and not only provide aid
for their education but also support families. They are responsible, disciplined and learn value of
money. With increased disposable income youth are spending or consuming even more due to
changes in attitudes, desire to indulge in luxurious lifestyle, peer pressure, media and so on.
Youth also travel daily to colleges or work; they need cash in hand. Saved money gets used for
different purpose. Lack of saving and banking habits are detrimental to future planning. In order
to save, youth should evaluate their spending habits. It is right time and age to learn how and
why to save, prepare a budget that matches their spending trends.

Youth who save and invest even small amount of money and monitor their spending do better in
life than who doesn’t. They will be better prepared to meet life’s challenges and handle
emergencies. Therefore it is important to assess saving, spending and banking habits among the
youth considering that they are future of our nation. It further explains level of awareness and
knowledge of banking products and transactions and its usage among youth.
As India has world’s largest population of working people, it expects to gain a demographic
dividend. However, it has limited capacity to generate employment which is a serious challenge.
Simultaneously, eradication of poverty is an important as well. To eradicate poverty, financial
inclusion among youth should be stressed. This study outlines status of financial inclusion
among youth through indicators of financial inclusion such as how youth save, spend, make
payments and use banking services. Therefore the study aims at analyzing saving and banking
habits among youth in Mumbai city with reference to college students pursuing higher education.
It deals with following questions:

1. What are the saving and banking habits among youth?

2. What are the determinants of selection of banks among youth?

3. What are the effects of financial literacy on financial inclusion among youth?

Definitions:

a. Youth:

For the study youth is defined as College student aged between 18-25 years pursuing
higher education in Mumbai city.

b. Saving:

For the study saving is defined as disposable income or cash in hand available and kept
aside for future use after meeting all the expenditure either out of pocket money or earned
income by youth.

c. Banking habits:
For the study Banking habits are defined as association of youth with banks in terms of
affiliation period, their awareness and usage of basic banks operation, online and mobile
banking.

d. Higher education:

It refers to university education at undergraduate, graduate, post-graduate level in

different streams like commerce, management, engineering etc.

e. Awareness:

Awareness is knowledge of the youth regarding online and mobile banking and banking
operations.

f. Usage:

It is the use, habit or customary practice of the youth regarding online and mobile banking
and banking operations

g. Online banking:

It is known as Internet Banking, E-Banking or Virtual Banking. It is information

technology based banking. All banking operations has transformed into its electronic
version. To make financial transaction, customer needs to have access to different gadgets
like laptops, phone, and tablets.

h. Mobile banking:

It is banking by using mobile telecommunication device. It allows customer to conduct a

number of financial transaction through a mobile device. Customer requires a Smart
phone to have access to Mobile Banking services for using Bank Apps. Customer needs to
download its bank’s application or software on mobile phone via internet.(Mobile
Banking: What are the advantages and disadvantages?, 2017)
 i. Financial Inclusion:

Financial inclusion is to enable youth to have the ability and tools to manage and save
their money and empower them with skills and knowledge to make right financial
decision.(SEPA for Corporates:Payment News, 2015)

j. Financial literacy:

The National Financial Educators Council defines financial literacy as: “Possessing the skills
and knowledge on financial matters to confidently take effective action that best fulfils an
individual’s personal, family and global community goals.”(National Financial Educators
Council, 2013)

1.2 WHAT IS INVESTMENT?

A nation’s productive capacity depends on a healthy capital formation. Robust saving rate
Coupled with good capital mobilization are the key macro economic variables, which play a
significant role in economic growth. A nation's savings and investment propensities also play a
key role in achieving dynamic stability in the capital market. Per Capita Income in India has-
been on the rise since all of the last decade. With growth in the PCI, savings and investment in
the country too has shown a northbound movement. At the same time, there has been
phenomenal rise in the youth population. This has made India the youngest nation with
demographic dividend appearing to be a reality. This young work force is expected to drive the
engine of growth.

In Economics, investment is generally held to mean formation of capital. As such, from a pure
economics point of view, the formation of physical assets is important when considering
investment. However this study focuses on what is referred to as Financial Investment i.e.
investment in shares and securities aimed primarily at earning income rather than enhancing
production. By virtue of this the words savings and investment come closer in meaning than
traditionally seen. However a slight difference still remains which is that while savings is simply
setting aside funds for future, investment also involves mobilizing them so that somebody else
may use it for productive purposes.
The study finds that safety and security, which were always important reasons for investment,
are still influential in determining the direction of investment. Respondents liked to keep
multiple options while choosing their investment options. However, returns on investment were
obviously the most considered factor followed by risk.

Saving accounts in banks appears to be the most common way of saving and investing for the
respondents. Mutual fund has gained the favor of young investors. Investment in mutual funds
through the Systematic Investment Plan (SIP) is a favored investment option for the youngsters.
This is especially true of the young salaried class, which has just started earning and does not
have a fat bank balance as yet. Youngsters today do know about the options available to them
due to the rapid spread of information in recent times; they are not always sure about how to go
about investing in newer ways actively.

An informed investor is a good investor; there is opportunity for providing them with guidance
and information but it has to be done in a way that is in accordance with their lifestyle – seminars
and workshops are no longer the kind of options to peruse. Podcasts, online videos, forums and
tutorials are the way of learning of the young generation. The social media platforms specially
Face Book, Twitter, LinkedIn along with e-groups
and websites can be a medium to spread awareness about various options available for the young
investors. Thus, investor education can play a vital role in improving the active participation of
the investors in the market, which can help them in the informed investment and in getting good
returns.

The study finds that safety and security, which were always important reasons for investment,
are still influential in determining the direction of investment. Respondents liked to keep
multiple options while choosing their investment options. However, returns on investment were
obviously the most considered factor followed by risk.
1.3 IMPORTANCE OF FINANCIAL INCLUSION:

Investment in
education
Help poor
Boost creation manage risk
of jobs and aborb
financial
stock

Importance
of Financial
inclusion

Source: Prepared by researcher using secondary data

Financial inclusion ensures easy access of financial services at affordable cost to the underprivileged and
unbanked sections of the society. For the inclusive growth expansion of financial services to all the section
of the society is an important factor. Banks act as a facilitator and provides core infrastructure and services
whereas business correspondents (BC’s) handle the responsibility of dealing with end users on behalf of
banks and financial institutions. They carry handheld terminals like Tablets (GSM enabled) with portable
biometric scanner, smart card swipe machines as well as thermal Bluetooth printers on the field to carry
out banking operations.

Unbanked and rural areas can get easy access to banking operations like deposits, payments, balance
enquiry and statement of account using fingerprint authentication. It will result in cashless economy.

Financial inclusion will further help to inculcate saving habits and capital formation. It will help rural
India by providing micro credit from formal banking channels. It will enhance the skill and ability to start
and grow business.
15
It will enable them to pay for their children’s education which enable a new generation of educated and
informed individuals. It will enable people to manage and save their own funds. Thereby handle
uncertainties, unexpected payments under emergency.

Financial inclusion boost creation of jobs, increase investment in education and directly help poor manage
risk and absorb financial stock.(Khanvilkar, 2015)(Bank of India)

This way it will help country in eradication of poverty by reducing inequality. It will benefit individuals
and families, men and women and the whole community which can drive economic growth.

As financial inclusion plays a significant role in inclusive growth. While studying banking habits
hypotheses is formed to study determinants of selection of banks among male and female youth. Factors
affecting selection of banks among youth are studied and tested with regards to Convenience, brand
image, sector preferences, advertising, referred by parents or friends, favourable rate of interest on loans
or deposits, quality of service, technology enabled products and services. It will help banks to create
strategy to attract new customer and retain the existing one which in turn will bank the unbanked and
result in inclusive growth.

OBJECTIVES OF THE STUDY:

 To study the spending pattern of two groups (graduation, post graduation)

 To study the avenues of savings practiced by the youth today.

 To study gender wise spending of the students.

 To analyze the relationship between satisfaction level of spending and saving.

 To find out risk appetite of youngsters.

 To find out whether the young investors are looking for long term growth or risk or
return liquidity
SCOPE OF THE STUDY:

Study can be carried out on how youth who have just got jobs, part time job and internships have changed
their spending and saving habits.

A gender wise spending and saving habits of youngsters can also serve as an interesting topic of study for
the researchers.

The scope of the study is restricted to the survey of college going students in the city of Navi Mumbai
with respect to their earnings and their investment pattern while doing their financial planning.

This study is based on primary as well as secondary data, however primary data collection has given more
importance since it is overhearing factor is student’s attitude. The population studied here is the under
Graduation and Post Graduation students in Mumbai. The research is analytical and tool used for data
collection is structured questionnaire.

LIMITATION OF STUDY:

This study focuses on a very small subset of the youth in India and is limited to the city of Navi Mumbai.
The study is restricted to the survey of college going students in the city of Navi Mumbai and does not
include those youth who have completed their education and is wholly into jobs. Thus, the generalization
of results may require further validation.
CHAPTER 3

REVIEW OF LITERATURE

Several studies have been conducted on the various aspects of the capital markets in the past. These
studies mainly relate to various instruments of capital market, shareholding pattern, new issue market and
scope, market efficiency, risk and return, performance and regulation of mutual funds. However, not much
of research work has been done on investment patterns amongst the young age group of the working
population and investor’s perceptions.

Abhijeet Birari&Umesh Patil (2014) studied the spending and savings habit of youth in
the city of Aurangabad. The study finds that significant difference exists in the spending
habits of students belonging to different education levels. The study finds that most of the
youth in the sample spend a large portion of the money on consumable goods and that
due to lack of awareness, the amount of money saved or invested is very little.

Gina Chowa, Mat Despard & Isaac Osei-Akoto (2012) in their paper ‘Youth saving
patterns and performance in Ghana’ attempted to find whether the youth will participate
in savings via formal financial services if given the opportunity. The study found that
most youth in the sample, set aside money regularly, hold onto their set aside money for
short periods of time and use it mostly for short-term consumptive purposes. The study
concluded that, youth of a developing country have a high propensity to save but, lack of
proper knowledge and information restricted the youth from venturing out into the area
formal savings and investments.

Patel & Patel (2012) studied the investment perspective of salaried people. The paper
aimed at studying the behavioural pattern & difference in perception of an individual
related to various investment alternatives. The study finds that the youth that was
surveyed preferred investments over savings. The study also discovers that, rather than
safe and secure investments, the youth prefer investments that are high risk but also yield
high returns.
Manish Mittal and R. K. Vyas (2007) study on “Demographics and Investment
Choice among Indian Investor” shows that based on gender, men prefer Equities as
their first choice and women prefer post office deposits as their first choice. The
investor of age group 18-25 First choice is Equities and above 45 years first choice is
Derivatives. Less income groupprefers post office deposit and high income group
prefers Derivatives as their first choice. Postgraduates prefer Mutual Fund and
Professionals prefer Equity.
Service as occupation people prefers Equity whereas housewife prefers Real estates
and Bullions.

(Picard, D.E. 1999) observes that School and college students have little or no
understanding of basic financial terms such as budget, buying on credit, life insurance,
compound interest, mutual funds, and social security. The National Endowment for
Financial Education High School Financial Program (NEFE) curriculum and other
programs are designed to fit into existing high school coursework in order to teach
basic financial planning, saving and wise spending. Students, thus learn concepts like
goal setting, prioritizing, budget development, credit card management, basics of
insurance and investing and so on.

(Jones, J. 2007) focuses on educating youth on good spending and saving habits.
Youthbetween18 to 30 years are fast approaching their prime borrowing age. It’s
essential to design an educational program on financial planning to achieve long term
financial success. To take right decision, youth should envisage the right time for any
financial requirement. Truly or not, they are ignorant of magnitude of spending on higher
education, marriage, starting a family, taking care of elders and so on. Many credit unions
are educating youth though it is considered a waste when kids leave. However, even if
they move away from home, services are remotely provided throughout their adult years.
Nevertheless, they play an important role and become their trusted financial partner to
 handle their debt for a lifetime.
.
(Kamalanathan, 2015) This paper focuses on shopping preferences of youths in India
with special reference to Mumbai City. Analysis of spending behavior of 300 young
consumers aged 13-25 years and based on gender and educational qualification
concluded that there is not much difference between young males and females.
Alcoholism and consuming tobacco, is increasing all youth regardless of the gender.
Based on educational qualification, it is found that there is a significant difference in the
spending habits of junior, graduate and post graduate educated youth. The study lacks in
studying saving and banking habits among youth. It also fails to suggest measures to
inculcate wise spending habits among young consumers
In Colombia the YouthSave project permitted youth to open accounts independently
without an adult co-signor and also lowered the age to 7 years to increase use of services.
In Benin, 16% informal small unregulated institutions have developed in parallel though
with a high default rates which affected the growth of microfinance

(Birari, P, & Patil, 2014)This paper studies the spending pattern of three groups of
college students by gender- under graduates, junior college and post graduates. In
survey of 150 students, the study observes significant differences in spending between
the categories covered. College students spend large proportion of their money on
shopping, fast foods and mobiles. Study also identifies lack of awareness about saving
and investment. This study ignores the determinants of saving and spending habits
with no reasons explained for difference in the gender-wise spending pattern between
graduate, junior college and post graduate students. It further does not suggest
stakeholders’ measures to improve their saving and spending habits.

(Chhabra, 2016) 120 college students from Sirsa district Haryana were sampled to
study their spending habits. Based on gender and educational qualification, no
significant difference in spending behavior is found. Saving habits and many factors
associated with saving and spending behavior are ignored. No suggestions are made to
improve saving habits either.
CHAPTER 4

RESEARCH METHODOLOGY

The data is collected through primary method as well as secondary method. The study is based on the
data collected from students in Navi Mumbai. A sample size of 100 students is taken for the purpose of
collecting primary data. The survey and interview was conducted online and telephonically with
concerned students. The students were required to answer the questionnaire from the choices given to
them. The respondents were mostly people between the age of 17-25 from Navi Mumbai. The secondary
data for additional information was collected through numerous sources such as books, magazines,
research papers, news paper articles and internet.

1. Questionnaire:

Set of questions for obtaining statistically useful or personal information from individuals Written or
printed questionnaire often with spaces for answers Survey made by the use of a questionnaire

2. Interview Method:

Interview is a verbal communication or two way conversation between two persons like interviewer and
interviewee to get information’s about a problematic situation.

3. Observation Method:

Observational research (or field research) is a type of co relational (i.e., non-experimental) research in
which a researcher observes ongoing behaviour. There are a variety of types of observational research,
each of which has both strengths and weaknesses. These types are organized below by the extent to which
an experimenter intrudes upon or controls the environment.

Secondary Data:

1. Articles

2. Book

3. Periodical
4. Internet

5. Newspaper

Sample Size - The population being large the survey was carried among 100 respondents. They will be
considered adequate to represent the characteristics of the entire population.

Sample Size – 100

Sample Design – Data has been presented with the help of bar diagram etc.

HYPOTHESIS:
1) H0 There is no significant difference in saving habits of boys and girls.
H1 There is significant difference in saving habits of boys and girls.
2) H0 There is no significant difference in Saving habits and undergraduate and
postgraduate students.
H2 There is significant difference in Saving habits and undergraduate
and postgraduate students.
CHAPTER 5
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

TABLE 5.1
MALE FEMALE

UNDER 13 37
GRADUATION
POST 7 43
GRADUATION

FIGURE 5.1

No Of Male & Female

50
45
40
35
30
25
20

MALE
FEMALE

15
10
5
0

UNDERGRADUATEPOST GRADUATE

INTERPRETATION:

The study is conducted in UG and PG level. In 13 male students and 37 female students and in
PG 7 male students and 43 female students are taken for the study.
 EDUCATION WISE CLASSIFICATION OF RESPONDENTS

TABLE 5.2

UNDER 50
GRADUATION

POST 50
GRADUATION

FIGURE 5.2

No of Undergraduate & Postgraduate Students

60

50

40
UNDERGRADUATE
30
POSTGRADUATE
20

10

0
NO OF UNDERGRADUATE AND POSTGRADUATES

INTERPRETATION:
For this study 50 UG students and 50 PG students are taken.
 SOURCE OF INCOME
(EDUCATION WISE)

TABLE 5.3

Source of Income UG PG Total

Pocket Money 38 40 78

Scholarship/ Grant 21 11 31

Job (Part time/ Weekend) 4 4 8

Others 11 6 17

FIGURE 5.3

Sources Of Income
45

40

35

30

25
UG
20 PG

10
15

0 POCKET MONEY SCHOLERSHIP GRANT JOB(PART TIME/ OTHERS

WEEKEND
INTERPRETATION:

From the above graph it is evident that about 57.78% of income of student is from pocket money.
And of 23.7% is from scholarship and Grand. Here 6% of incomes from part time or weekend job and
that of 12.6
% income from other sources.

SOURCES OF INCOME
(GENDER WISE)

TABLE 5.4

Source of Income Male Female Total

19 59 78
Pocket Money (59.375%) (57.28%) (57.78%)

6 26 32
Scholarship/ Grant (18.75%) (25.24%) (23.7%)

4 4 8
Job (Part time/ (12.5%) (3.89%) (6%)
Weekend)
3 14 17
Others (9.37%) (13.6%) (12.6%)
FIGURE 5.4

Sources Of Income
70
60
50
40
30
20
10

MALE
FEMALE
0

INTERPRETATION:

About 78% of students get their income through pocket money. 59% male students have pocket
money. Among females, their majority source of income is pocket money. 12.5% male students
do part time job to earn money. Only 4 % female students do part time jobs. 18% males get
money through scholarships and grant and 25% of girls get scholarships and grants.
 AMOUNT OF MONEY GETTING PER MONTH
(EDUCATION WISE)

TABLE 5.5

Class UG PG Total/ Percentage

<500 31 27 58

500 – 1000 12 12 24

1000 – 2000 4 9 13

>2000 3 2 5

FIGURE 5.5

Amount Of Money Getting Per Month

35

30

25

20
UG
15 PG

10

0
<500 500 - 1000 1000 - 2000 >2000
INTERPRETATION:

Here, majority of students have income less than Rs 500 per month. That is about 58% of
students have income less than Rs500. Only 5% of students have income more than Rs 2000.
About 24% is in between the class 500 – 1000. Here about 13% of students have income in the
class of 1000 -2000.

AMOUNT OF MONEY GETTING PER MONTH

(GENDER WISE)
Table 5.6

Class MALE FEMALE Total/ Percentage

<500 10(50%) 48(60%) 58

500 – 1000 5(25%) 19(24%) 24

1000 – 2000 1(1%) 12(15%) 13

>2000 4(20%) 1(1.25%) 5

FIGURE 5.6

60
AMOUNT OF MONEY GETTING PER MONTH

50

40

30 MALE
FEMALE

20

10

0
<500 500 - 1000 1000 - 2000 >2000

INTERPRETATION:

The above table and figure shows that only 20% of males are getting more than Rs 2000
per month. About 58% of students have income less than Rs 500. In male it is 50% and
in female it is 60%.
 SPENDING PATTERN OF STUDENTS

(EDUCATIONALWISE)

POST GRADUATE STUDENTS

TABLE 5.7

Spending Avenue Weighted Score Rank

Entertainment 199 5

Fast Food 184 6

Health & Fitness 181 7

Mobile & Laptop 295 3

Expenses

Studies & Tuition fees 334 1

Shopping 255 4

Transportation 301 2

Cosmetic & Beauty 156 8

care
FIGURE 5.7

SPENDING PATTERN OF PG STUDENT

400

350

300

250

200

150
WEIGHTED SCORE
100

50

0
INTERPRETATION:

When studying the spending pattern of post graduate students it is clear that they give first rank
to studies and tuition as their top most spending area. Students give second rank to transportation
and third rank to mobile and laptop expenses.
Shopping is an important factor in their spending and it is comes in the fourth rank. Students are
not much interested in spending on entertainment activities. Students less spends on fast food
and health and fitness and they give last ranks to these area of spending. Only a minor portion of
students give importance to cosmetics and beauty care

UNDER GRADUATE STUDENTS

Table 5.8

Spending Avenue Weighted Score Rank

Entertainment 203 6

Fast Food 212 5

Health & Fitness 157 8

Mobile & Laptop 227 4

Expenses
Studies & Tuition fees 273 3

Shopping 302 1

Transportation 285 2

Cosmetic & Beauty care 175 7

Figure 5.8

SPENDING PATTERN OF UG STUDENT

350

300

250

200

150

100 WEIGHTED SCOEW

50

INTERPRETATION:

When studying the under graduate students spending habits, students give first preference to
shopping. Most of them are ranked shopping as their top most spending area. Transportation
comes in the second position. They also incurred expenses on studies and tuitions. Mobile and
expenses comes in the fourth rank and fast food comes in the fifth rank. They are not much
interested in spending on entertainment. UG students are beauty conscious as compared to PG
students, they give seventh rank to this area and health and fitness comes in the last position.
 SPENDING PATTERN OF STUDENTS

(GENDER WISE)

MALE STUDENT

Table 5.9

Spending Avenue Weighted Score Rank

Entertainment 110 1

Fast Food 82 5

Health & Fitness 52 8

Mobile & Laptop 102 2

Expenses
Studies & Tuition fees 73 6

Shopping 88 4

Transportation 96 3

Cosmetic & Beauty care 60 7

Figure 5.9
SPENDING PATTERN OF MALE
120

100

80

60

40
WEIGHTED SCORE
20

INTERPRETATION:

When studying the spending pattern of male student’s entertainment rank. All most all male
students are spending more on entertainment. Gadgets expenses hold the second position and
transportation in the third rank. These three areas are denoted as the most spending area in the
case of male students. Shopping comes in the fourth position and spending on fast food comes in
the fifth position. As compared to female students male students have more consumption of fast
food. Males are less conscious about beauty care and health and fitness.
FEMALE STUDENTS

Table 5.10

Spending Avenue Weighted Score Rank

Entertainment 255 4
Fast Food 210 7
Health & Fitness 194 8
Mobile & Laptop Expenses 273 3
Studies & Tuition fees 290 1
Shopping 278 2
Transportation 247 5
Cosmetic & Beauty care 228 6

Figure 5.10

SPENDING PATTERN OF FEMALE

350
300
250
200
150
100
50
WEIGHTED SCORE
0
INTERPRETATION:

When studying the spending pattern of female students it is evident that the female spend
more on studies and tuition fees. Shopping hold the second rank in the spending pattern
of female youth. Mobile and laptop expenses is the another area where females tempt to
spend. The expenses on entertainment are lesser in females as compared to males.
Transportation and beauty care is another areas where females have adequate amount of
spending. Only a small number of female students spend in maintaining health and
fitness.

NUMBER OF STUDENT HAVING SAVINGS

(EDUCATION WISE)

Table 5.11

Savings UG PG Total

Yes 46 49 95

No 4 1 5
Figure 5.11

60
NO OF UG AND PG STUDENTS HAVING SAVINGS

50

40

30 UG
PG

20

10

0
YES NO

INTERPRETATION:

About 95% of students have savings. Also about 5% of students do not have savings. Out of 50
students in UG, 46 of them have savings and 4 students do not have savings. In the case of PG
students, 49 students having savings and 1 don’t save any amount.
 STUDENTS HAVING SAVINGS

(GENDER WISE)

Table 5.12

Savings Male Female Total

Yes 17 78 95
(85%) (97.5)
No 3 2 5
(15%) (2.5%)

Figure 5.12

90
NO OF MALE AND FEMALE HAVING SAVINGS
80

70

60

50
MALE
FEMALE
40
30

20

10

0
YES NO
INTERPRETATION:

From the above table it is clear that 85% of males save money and 97.5% of females save money.
It is also given that about 15% of females do not save any amount and only 2.5% of females do
not have any saving.

AMOUNT SAVES PER MONTH

(EDUCATION WISE)
Table 5.13

Class UG PG Total Percentage

Less than 500 29 38 67 69.56%

500 – 1000 12 12 24 26.08%

1000 – 1500 1 Nil 1 1.08%

More than 3 Nil 3 3.26%

1500

43
Figure 5.13

40
AMOUNT SAVES PER MONTH

35

30

25

20 UG
PG

15

10

0
LESS THAN 500 500 - 1000 1000 - 1500 MORE THAN 1500

INTERPRETATION:

The above table and figure shows the amount of money save per month for UG and PG students
separately. It is understood that majority of students save less than 500. In UG, 29 students save
per month less than Rs 500 and in the case of PG students 30 save less than 500. In total, 69.56%
of students save less than 500. In the class of 500 – 1000, 12 PG Students and UG students come
under the class. Only 1 student saves in UG in the class of 1000 – 1500 and no one save in PG in
this class. There are 3 students in UG only save more than Rs 1500 per month.
 AMOUNT SAVES PER MONTH

(GENDER WISE)
Table 5.14
Class Male Female Total
10 60
Less than 500 (58.82%) (76.92%) 70

5 16
500 - 1000 (29.41%) (20.51%) 21

Nil 1
1000 – 1500 (0%) (1.28%) 1

2 1
More than (11.76%) (1.28%) 3
1500

Figure 5.14

70
AMOUNT SAVES PER MONTH
60

50

40
MALE
FEMALE
30

20

10

0
LESS THAN 500 500 - 1000 1000 - 1500 MORE THAN 1500
INTERPRETATION:

Both the table and figure show the gender wise amount of savings per month. It is clear that about
76.92% of female students save per month less than Rs 500 and 58.82% of males save in the same
class. Only 29.41% of males and 20.51% of female students save in the class of 500 – 1000. Only
1 female saves in the class of 1000 – 1500. Only 2 males and 1 female save more than 1500 per
month.

SAVING AVENUES

(EDUCATION WISE)

Table 5.15

Saving
Avenues UG PG Total Percentage
Bank Deposit 32 31 60
65.25%
Post office savings
bank 2 1 3 3.26%
Chit funds 2 2 4 4.34%

Others 10 15 25 27.17%
Figure 5.15

35
SAVING AVENUES
30

25

20

15 UG
PG

10

0
BANK DEPOSIT POST OFFICE SAVING CHIT FFUNDS OTHERS
BANK

INTERPRETATION:
The above table and figure shows the saving avenues of UG and PG students. Most of the students are
channelizing into bank deposits (That is about 65.2%) students having post office savings and chit funds
are less in number compared to bank deposit. About 27.17% of students invest their savings into other
avenues
 . SAVING AVENUES
(GENDER WISE)
Table 5.16

Saving Avenues Male Female Total

Bank Deposit 4 56 60
(20%) (70%)
Post office 1 2 3
savings bank (5%) (2.5%)
Chit funds 2 2 4
(10%) (2.5%)
Others 5 20 25
(25%) (25%)

Figure 5.16

60
SAVING AVENUES

50

40

30 MALE
FEMALE
20

10

0
BANK DEPOSIT POST OFFICE CHIT FUNDS OTHERS
SAVING BANK
 INTERPRETATION:

The above table shows the way in which respondents save their surplus money. Out of 20
males, 20% divert their savings into bank deposit. About 25% of males save through
other sources. Out of 80 females, 56 (70%) respondents save their money in bank
deposits and 25% of females in other sources. The number of males and females having
post office savings and chit funds are very less when compared with other avenues of
savings.

REGULARITY IN SAVINGS

(EDUCATION WISE)

Table 5.17

UG PG Total Percentage

Save 10 16 26 26%
Regularly

Not Save 40 34 74 74%

Regularly
Figure 5.17

45
REGULARITY IN SAVINGS OF UG AND PG STUDNENTS

40

35

30

25

UG
20 PG

15

10

0
SAVE REGULARLY NOT SAVE REGULARLY

INTERPRETATION:

There is a higher irregularity in savings. About 74% of students do not save regularly. Only 26%
of students have regularity in their savings. In the case of UG students 10 students save regularly
and 40 students not save regularly. In the of PG students 16 students save regularly and 34 of
them not save regularly.
 REGULARITY IN SAVINGS
(GENDER WISE)

Table 5.18
Male Female Total
Save 10 16
Regularly (50%) (20%) 26

Not Save 10 64
Regularly (50%) (80%) 74

Figure 5.18

70REGULARITY IN SAVINGS OF MALE AND

FEMALE
60

50

40
MALE
FEMALE
30

20

10

0
SAVE REGULARLY NOT SAVE REGULARLY
 INTERPRETATION:

The above table and figure shows regularity in savings of males and females. About 50%
of males save regularly and 50% not save regularly. In females, 20% save regularly and
80% not save regularly.

PURPOSE OF SAVINGS
(EDUCATIONAL WISE)
Table 5.19

Purpose UG PG Total Percentage

As a habit 13 23 36 38%

For higher 14 3 17 18%

studies

For future 5 10 15 15.78%

shopping

Others 14 13 27 28.42%
Figure 5.19

25 PURPOSE OF SAVINGS OF UG AND PG STUDENT

20

15

UG
PG
10

0
AS A HABIT FOR HIGHER STUDIES FOR FUTURE OTHERS
SHOPPING

INTERPRETATION:

The above table and figure shows the purpose of savings in UG and PG students. About 38% of
students save money as a habit. And 18% of students save money for higher studies. And about
15.78% of students save money for future shopping and 28.42% save for other purposes.13
students in UG and23 students in PG save money as a habit. 14 students in UG and 3 in PG save
for future higher studies. 5 students UG and 10 students in PG save money for future shopping
purposes. About 14 students in UG and 13 students in PG save money for other purposes.
 PURPOSE OF SAVINGS
(GENDER WISE)
Table 5.20

Purpose Male Female Total

As a habit 8 28
(40%) (37.33%) 36
For higher 4 13
studies (20%) (17.33%) 17

For future 2 13
shopping (10%) (17.33%) 15

Others 6 21
(30%) (28%) 27

Figure 5.20

30PURPOSE OF SAVINGS OF MALE AND FEMALE

25

20

15 MALE
FEMALE

10

0
AS A HABIT FOR HIGHER STUDIES FOR FUTURE OTHERS
SHOPPING
INTERPRETATION:

The above table and figure shows the purpose of savings among students. From the table it is
evident that 40% of male students and 37.33% of female students save money as a habit. 20% of
males and 17.33% of female students save for future higher studies.10% of male students and
17.33% of female students are saving for future shopping. About 30% of males and 28% of
female students save for other purposes.

SPENDING AND SAVING STATUS

(EDUCATIONAL WISE)

Table 5.21

UG PG Total Percentage

Spending > 26 29 55 57.89%

Savings

Spending = 8 7 15 15.78%
Savings

Spending < 12 13 25 26.31%

Savings
Figure 5.21

35
SPENDING OF SAVING STATUS OF UG AND PG STUDENT

30

25

20
UG

15 PG

10

0
SPENDING>SAVINGS SPENDING=SAVINGS SPENDING<SAVINGS

INTERPRETATION:

The above table and figure shows saving and spending status of UG and PG students. More than
50% of students spend more than they save. Small portion students have an equilibrium status,
that is saving is equal to spending. About 26.31% of students save more than they spend. 26
students in UG and 29 students in PG have spending greater than savings. 8 students in UG and 7
students in PG have an equilibrium status i.e., spending equal to saving.12 students in UG and 13
in PG have spending less than savings.
 SPENDING AND SAVING STATUS
(GENDER WISE)

Table 5.22

Male Female Total

Spending > 7 49 55
Savings (41.17%) (62.82%)
Spending = 4 11 15
Savings (23.525) (14.1%)
Spending < 6 18 25
Savings (35.29%) (23.07%)

Figure 5.22
60
SPENDING AND SAVING STATUS OF MALE AND FEMALE

50

40

30 MALE
FEMALE

20

10

0
SPENDING>SAVING SPENDING=SAVING SPENDING<SAVING

58
INTERPRETATION:

The above table and figure shows gender wise spending and saving status of students. About
41.17% of male students and 62.82% female students have spending more than savings. About
23.52% of male students and 14.10% of female students have an equilibrium position that
spending is equal to savings. About 35.29% of male students and 23.07% of female students
spend less than their savings.

DURATION OF SAVINGS
(EDUCATION WISE)
Table 5.23

Class UG PG Total Percentage

Less than 1 13 13 26 27.36%

year
1 – 3 years 21 21 37 38.94%

3 – 5 years 5 5 8 8.42%

More than 5 7 7 24 25.26%

years
Figure 5.23

25
DURATION OF SAVINGS

20

15
UG
PG
10

0
LESS THAN 1 YEAR 1 - 3 YEARS 3 - 5 YEARS MORE THAN 5 YEARS

INTERPRETATION:

The above table and figure shows the duration of savings of UG and PG students. About 27.36%
of students save for less than 1 year. About 38.94% of students have been saving money for 1 – 3
years. Some of the students have been saving since 3 – 5 years and about 25.26% of students have
been saving for more than 5 years. 13 students in UG and 13 students in PG have savings for less
than 1 year.21 UG students and 16 PG students have savings for 1 – 3 years. 5 students in UG and
3 students in PG have saving for 3 – 5 years. 7 students in UG and 17 students in PG have savings
for more than 5 years.
 DURATION OF SAVING

(GENDER WISE)
Table 5.24

Class Male Female Total

Less than 1 5 21 26
year (25%) (28%)

1 – 3 years 8 29 37
(40%) (38.67%)

3 – 5 years 3 5 8
(15%) (6.67%)
More than 5 4 20 24
years (20%) (26.66%)

Figure 5.24

DURATION OF SAVINGS
35

30

25

20 MALE
FEMALE
15

10

0
LESS THAN 1 YEAR 1 - 3 YEARS 3 - 5 YEARSMORE THAN 5 YEARS
INTERPRETATION:

The above table and figure shows gender wise duration of savings. About 25% of males and 28%
of females have been saving for less than 1 year. 40% of male and 38.67% of female students
have been saving since 1 – 3 years. About 15% of males and 6.67% of females have been saving
for 3 – 5 years. About 20% of males and 26.66% of females have been savings for more than 5
years.

GENERAL OPENION ABOUT SAVINGS AMONG COLLEGE STUDENTS

Table 4.25

Total Percentage

Increasing 28 28%

Decreasing 37 37%

Don’t know 35 35%

 Figure 4.25

GENERAL OPINION ABOUT SAVINGS AMONG COLLEGE STUDENTS

40

35

30

25
TOTAL
20
15

10

0 INCREASING DECREASING DON'T KNOW

INTERPRETATION:

When analyzing the general opinion about saving among college students 35% students don’t know about
the importance of savings. 28% of students have increasing opinion about savings. Most of students don’t
know about the importance of savings

63
CHAPTER 6

CONCLUSIONS AND SUGGESTIONS

CONCLUSION:

The biggest obstacle to saving money is our own saving and banking habits. Various strategies can be
developed with the help of banks to keep our money safe from spending. Arrangements can be to remove
access to savings account from bank card and online banking. Visiting a bank to make withdrawal will
postpone the desire to purchase and will give more time to think about spending money. It is also important
to grow money through investments. Banks can invest our money with a company where it will take
number of days for withdrawal of money. Such withdrawals are also questioned by bank representatives. It
will create another barrier and keep our money safe from impulsive spending behavior. Example is term
deposits, mutual funds and all types of RRSPs (Registered Retirement Saving Plans). It depicts saving can
be done in a better way by developing good banking and investing habit

Through the study of saving and banking habits among youth, researchers bring out the significance of
financial inclusion among youth and inclusive growth. Inclusive growth is directly related to economic
development of a country. It ensures involvement of disadvantaged and excluded segments of the society in
development process. Many groups in the society are excluded from development process due to lesser
agricultural growth, lower human development, rural-urban divides, gender, social inequalities, and regional
disparities and so on.

Financial inclusion plays a significant role in inclusive growth. It ensures easy access of financial services at
affordable cost to the underprivileged and unbanked sections of the society. Unbanked and rural areas can
get easy access to banking operations like deposits, payments, balance enquiry and statement of account
using fingerprint authentication.

In this study researcher exhibits the significance of saving and banking habits to achieve financial inclusion
among youth in the process of eradication of poverty and achieving inclusive growth. India’s youth face
several developmental challenges, including access to education, gainful employment, gender inequality,
child marriage, absence of youth-friendly health services and adolescent pregnancy. Yet with investments in
their participation and leadership, young people can transform the social and economic fortunes of the
country. As India has maximum youth population, there is lot of potential to be tapped in the economic and
social advancement of the nation. Hence it is concluded that

Financial status of youth is a significant parameter which influences financial inclusion among youth. Youth
with less disposable income in hand cannot save. Hence there is lot of unbanked population belonging to
lower income group. The Government needs to overcome obstacles faced by young population. It all starts
with access to education by lowering education cost, creating awareness among illiterates, providing training
and marketable skills to youth at reasonable cost. Skill building should be linked with market opportunities.
It will increase their financial status thereby increase money at their disposal.

Inclusive growth can also be attained by providing equal opportunity to all, male as well as female youth.
Families should be encouraged or rewarded for educating female child. An initiative need to be taken to
create awareness on adverse consequences of early marriage and child birth for female youth. Female youth
can be empowered through education, by addressing their nutritional needs, orientation on sexual and
reproductive health. They should be encouraged to take up jobs and take part in financial decisions taken at
home.

Though Indian financial market is efficient in terms of technology, regulation and system, most Indians do
not have regular saving habit. They only try to save surplus money without preparing budget or financial
planning. This hinders monetary development. Hence saving and banking habits is another important
parameter to monitor financial inclusion among youth. Saving and banking habits are studied with the
intention to guide youth in the right direction.

With increased disposable income youth are spending or consuming even more due to changes in attitudes,
desire to indulge in luxurious lifestyle, peer pressure, media and so on. Hence it is primary responsibility of
the parents to take initiatives to inculcate saving habits at an early age. Parents should through their act teach
children value for their money, watch their spending and money management for financial freedom.
Activities conducted at school levels would also help to bring significant changes in their thinking and to
inculcated saving and banking habits. Various strategies can be developed with the help of banks to keep our
money safe from spending. Arrangements can be made to remove access to savings account from bank card
and online banking. Visiting a bank to make withdrawal will postpone the desire to purchase and will give
more time to think about spending money. It is observed that lack of understanding and ability to manage
financial resources leads to overspending, debt, no saving, and no money during emergencies. Saving also
facilitate efficient use of scare resources, increase the size of national output and resolve the problem of
inflation and unemployment. Families should acquire discipline of saving/spending wisely and make proper
investment planning to achieve financial goals.

Growth of banking and saving goes hand in hand. Saving is dependent upon the power of people to save and
their will to save whereas banks play a significant role to mobilize people’s savings as capital to potential
investors that produce goods and services. Hence growth of banking sector is another important parameter in
achieving inclusive growth. With digitalization, banks globally have been effectively deploying innovative
technology enable products and delivery channels. Internet banking, ATM’s, debit & credit Cards, mobile
banking, EFT (Electronic Fund Transfer) are technology driven channels helping banks to enhance their
efficiency, productivity and competitiveness. They are increasingly shifting their physical branches to digital
only formats and initiated to divert their staff towards retail centric approach. With more customer
involvement banks have plans to automate over 90% of their banking transactions. PWC estimated that
mobile banking transaction in India will exceed 340 million in 2015. It will result in cost savings of
approximately 1,100 crore INR. There won’t be much difference between transaction cost of mobile and
internet banking transactions. Digital banking will help banks to strengthen their existing relationship with
branch customers and to provide new value to them. Therefore to achieve financial inclusion it is important
to spread awareness for the usage of basic banking operations through online and mobile banking. Banks
need to design strategy and come up with innovative financial product to attract new customer and retain the
existing one which in turn will bank the unbanked and result in inclusive growth. Hence to achieve financial
inclusion everyone in the society who is the part of the system need to be financially literate. By spreading
financial education one can understand the aspects like financial goals, budgeting, investment, compound
interest, financial planning.

The economy is growing, the job market has been doing well and there has been a rise in the graph for
salaries. The new generation of youth in India will have money in its pockets and ample opportunity to put it
to good use, if they can shift from the traditional bank account savings to the capital market. They
understand the importance and benefits of investing and know how they want to use their money now and in
the future. They need lucrative options to put their money in for days to come but are understandably afraid
or confused due to lack of practical understanding.

Traditional saving options like post office schemes and fixed deposits are now passé. Options like post office
schemes and fixed deposits are not very popular with the youth as the rate of interest on them is lower as
compared to other investment options available. But somehow savings accounts are still seen widely. Safety
and security which were always important reasons for investment are still influential in determining the
direction of investment. However their hold is loosening. With money in hand and age on their side, the
young investors are becoming more inclined towards taking risk. Fixed deposits are not a very attractive
investment option for youngsters these days.

Tax saving is one of the reasons behind investment by the youth. Traditional saving schemes do not provide
any tax benefits and are, therefore, keeping the youngsters away from them. There seems no rationale for
investing in fixed deposits and post office schemes when they provide no tax rebates and the rate of return on
them is fixed and also lower than other investment options. There is exemption for capital gains arising out
of Equity Shares and Equity Oriented Mutual Fund units subject to certain conditions under the Income Tax
Act. Mutual fund has gained the favor of the youngsters today.

Investment in mutual funds through the Systematic Investment Plan (SIP) is a favored investment option for
the youngsters. This is especially true of the young salaried class which has just started earning and does not
have a fat bank balance as yet. In case of Systematic Investment Plans, instead of bulk payment, a small
amount is to be paid every month. This makes them very popular with the salaried class who find it difficult
to shell out a large amount at one-go. Mutual Funds also have the benefit of requiring lesser financial
competence as they are managed by experts while providing higher returns and better prospects than Bank
Accounts.

Other traditional investment options like the Fixed Deposit or the Post Office schemes (PPF/ NSC /NSS/
KVP/IVP) are losing their way due to blocking of funds and lower returns. Gold is still preferred to some
extent especially when it comes to females. Due to rise in price of gold from somewhere around 4,000-5,000
in 2003 to around 17,000 in 2010, gold is still shining an investment option. However it is also an expensive
investment and requires a fat purse to start with in the hope of having a fatter purse.
Youngsters today are aware of what is happening around them and are intelligent enough to decide what is
best for them. Every option is considered and the pros and cons of each weighed carefully before the
decision to invest the hard-earned money is taken.

Youngsters today do know about the options available to them due to the rapid spread of information in
recent times; they are not always sure about how to go about investing in newer ways actively. An informed
investor is a good investor; there is opportunity for providing them with guidance and information but it has
to be done in a way that is in accordance with their lifestyle – seminars and workshops are no longer the kind
of options to peruse. Podcasts, online videos, forums and tutorials are the way of learning of the young
generation. The social media platforms specially Face Book, what’s app, Twitter, LinkedIn along with e-
groups and websites can be a medium to spread awareness about various options available for the young
investors. Thus, investor education can play a vital role in improving the active participation of the investors
in the market, which can help them in the informed investment and in getting good returns.
Media too can highlight young investors through newspaper columns, which would encourage more
participation in the capital market from the young generation.
CHAPTER 7
FINDINGS:
1. Among UG and PG students, most of them have income from pocket money. In gender
wise classification, both males and females meet their expenses by using pocket money.

2. Only a small percentage of students earn money through part time or weekend jobs. A
minor portion of students get scholarships and grants.

3. Majority of our respondents get less than rupees 500 per month. There is only a minor
portion of them get more than rupees 2000 per month.

4. When study the spending habit of UG students, we find that their major spending
segment is shopping. Shopping of branded lifestyle products and accessories are taking
first position in their spending.

5. When we consider PG students, both males and females prefer studies and tuition as
their highest spending area. More than half of our respondents are females and they
marked that their spending is mainly concentrated in the area of studies and tuitions, but
the male students prefer entertainment as their highest spending area.

6. Majority of students in both UG and PG have savings. Most of them prefer bank
deposit as their interested saving avenue. In gender wise classification, most of the male
and female students have savings. A minor portion of students do not have savings.

7. Most of the students in UG and PG save less than 500 rupees per month. When we
consider gender wise, the study shows that male and female students have a savings of
less than 500 rupees per month.

8. Most of the students prefer savings bank deposits as their savings avenue. Both male
and female students are also interested in savings bank account.

9. Post office saving and chit funds have an equal role in the saving habit among college
students.

10. Only a small portion of students have regularity in their savings most of the students
save irregularly. When we consider male and female separately, about half portion of male
students have regularity in savings.

11. In the case of female students, only a minor portion of them have regularity in their
savings.

12. Most of the students in PG save their portion of income as a habit. But in the case of
UG students, they save money for the purpose of future studies. While classifying gender
wise purpose of savings both male and female students save their money as a habit. Most
female students in UG and PG are interested to save money as a habit but some of them
save for future studies.

13. Most of the students in UG and PG have similar spending and saving status. That is
every one save less than they spend. The gender wise analysis of students shows that both
male and female students spend more than they save.

14. The duration of savings of students in UG and PG are 1 – 3 years. About one-fourth
of students save for less than 1 year. Female and male students are also

Interested in medium term savings. Only a minor portion of them save money for long
team.

15. The general opinion about saving among college students shows a decreasing trend.
Only a small portion of students have knowledge about th youth saving
The study conducted on “The spending and saving habit of college students” was
undertaken to know the spending and saving habit of college students. It was found that
most of our respondents spend more than they save but their spending avenues are
different. Most of the students have savings and they know about the importance of
savings. Students commonly prefer saving bank account as their saving avenue and post
office savings and chit funds are very popular in female students. Students save as a habit
and a small portion save for their higher studies. From the study on spending pattern of
students, male students are spending higher amount in entertainment, shopping and
transportation. Female students mainly spend in the area of studies and tuition fees
expenses.

From this, we conclude that the students have savings but they spend more than they save
and the students are not aware about the importance of savings.
CHAPTER 8
SUGGESTIONS

To quote J. Kenfield Morley, “In investing money, the amount of interest you want should
depend on whether you want to eat well or sleep well”.An individual investor should keep the
following points in mind while taking the decisions related to savings and investment of the
savings:

(1) Safety of Investment

While making an investment decision, the factors that an investor needs look out for
would vary with the type of investment. For example, in the case of shares, the safety may
be partially gauged from quantitative data such as the past trend in the price of the stock,
the financial performance of the company; it also may be supplemented with qualitative
factors such as the reputation of the company.

Analyzing balance sheets and project reports, however, require a great deal of expertise
and time, which is usually beyond the scope of the retail investor. Therefore, the
reputation of the issuer remains the only guide available.

(2) Credit Rating

When it comes to deposits or bonds issued by public companies or financial institutions, an

investor can rely on credit ratings. A Credit Rating is an evaluation of the safety of an
instrument made by an agency. These agencies undertake a detailed analysis of the issuer's
strengths and weaknesses. The rating is allotted based on a formula that also incorporates
past performance and volatility. They have a large and expert infrastructure that allows
them to make the kind of financial judgement, beyond the scope of an individual retail
investor.

(3) Type of Return

The return on investment may consist of appreciation in the value of the investment or
receipt of income or both. The first type of return is typical of real estate whereas the
second type is obtained as interest on loans or fixed deposits, savings certificates, bonds or
debentures. Both income as well as appreciation in value could be got from equity shares
of good companies.

(4) Risk - Return Linkage

The investor needs to be aware that there is a direct relationship between ' Return' on
investment and the 'Risk' of losing them. Higher the return, greater is the possibility of loss.
The Savings bank account under the present rules laid down by the Reserve Bank of India,
gives interest depending on the duration of the deposit. A long-term deposit gives a higher
rate of interest. The possibility of losing money in the savings bank account is almost
negligible, except in remote cases of small-time co-operative banks. While the risk of
losing money is almost absent. For instance, the saving bank accounts and bank fixed
deposits offer interest in the range of 4.5 to 9% per annum respectively. The Company
Fixed Deposits offer somewhat better rates of 12 to 15 % per annum. Building contractors
and film producers offer very high returns such as 24 to 36 % per annum, but the
probability of losing the entire principal amount in this case is very high.

(5) The Inflation Factor

As mentioned earlier, real return is return that is post tax and post inflation. The value of
the investment depends on the amount that the money can buy, and this goes down as
inflation goes up. Therefore while evaluating the return from a scheme; one needs to see
whether it is giving returns beyond the inflation rate.
The greatest problems with the investment avenues such as gold, silver, diamond and
jewelry have been that they have not served as an effective hedge against inflation.

(6) High Risk and High Returns

And finally, equity shares of listed companies as an avenue of investment can be

extremely rewarding. But they are also risky and call for a special mental makeup and
unusually sharp skills on the part of the investor. As Peter Lynch, the acclaimed
American fund manager said, "common stocks are not for everyone, nor for all times in
the life of the same person".

(7) Being Cautious

It has been noticed world over that an investor's greatest and most portent enemy is GREED
FOR HIGHER RETURNS. Many a times, rational thinking people tend to behave in the
most irrational manner while investing their savings. A well-known investment guru has
analyzed this uncanny behavior in one sentence - "Investor, protect thyself from thyself".
While analyzing, the popular savings options, an investor should consider two key factors:
Taxation and inflation along with risk and return. Thus, a sound investment is one which
gives the investor reasonable return after deducting outgo of tax as well as the invisible tax
of inflation.
CHAPTER 9
BIBLIOGRAPHY
BOOKS:

1. Peter S Rose, Money and Capital Markets, McGraw-Hill Publication, 6th

Edition

2. Dr. A P Philip, “Capital Market & Investment Management”- 4th Edition, Sobha
Publication Changanashery.

3. E Gordon, P K Gupta “Banking & Insurance”

4. S.N Maheswari, S K Maheswari, “Banking Law and Practice”.Kalyani

Publishers, New Delhi, 13th Edition, 2010

5. Neelam C. Gulati, “Banking and Insurance”, Excel Books, New Delhi 1st Edition
2011.

6. AbhijeetBirari&UmeshPatil“Spending & Saving Habits of Youth in

the City of Aurangabad” The Standard International Journals (The SIJ), May 2014

WEBLIOGRAPHY:

1. www.worldeconomy.com

2. www.aboutmoney.com

3. www.investopedia.com

4. www.sebi.org.in

5. www.businessdictionery.in

6. www.google.com
CHAPTER 10
APPENDIX

QUESTIONNAIRE

1) Name:

2) Age:

3) Gender: Male Female

4) Educational Qualification: a) Graduation b) Post Graduation

5) Source of Income:

a) Pocket Money
b) Scholarship/Grant
c) Job (part time/weekend)
d) Others

6) How much money will you get per month?

a) Less than 500

b) 500 - 1000
c) 1000 - 2000
d) More than 2000

7) Please rank the following according to your spending:

Entertainment
 Fast Food

Health and Fitness

Mobile/Laptop Expenses

Studies/ Tuition Fees

Shopping

Transportation/Petrol

Cosmetics and
Beauty care

8) Do you have savings:

i) Yes No

9) If yes, How much amount you save per month ?

a) Less than 500

b) 500 - 1000
c) 1000 - 1500
d) More than 1500

10) In which way you make savings?

b) Bank Deposit
c) Post office Savings
d) Chit funds
e) Others

11) Do you have regularity in savings?

i) Yes No

12) What is your purpose of savings?

f) As a habit
 g) For higher studies
h) For future shopping
i) Others

13) What is your spending and savings status:

j) Spending greater than savings

k) Spending equal to savings
l) Spending less than Savings

14) How long have you been saving money for?

m) Less than 1 year

n) 1 – 3 years
o) 3 – 5 years
p) More than 5 years

15) What is your general opinion about savings?

q) Increasing
r) Don’t Know
s) Decreasing