Madhuban Institute of

Professional Studies, Indore

(DEVI AHILYA VISHWAVIDYALAYA INDORE)

Major Research
Project On

“A COMPARATIVE STUDY OF FINANCIAL

LITERACY AMONG ENGINEERING AND
MANAGEMENT STUDENTS"

(For the partial fulfillment of the requirement for award of the degree of
Masters of Business Administration [Full Time] 2years Programme
2017-19)

Submitted to
DEVI AHILYA VISHWAVIDHALAYA, INDORE

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 GUIDED BY: PREPARED
BY:
Vikas Jain Suradhi
Kabra
(Principal) MBA (FT) IV Sem
Roll no. 72630052
Enroll No. DC1207615

DECLARATION

I hereby declare that the present work is embodied in the

dissertation title “ A Comparative Study of Financial

Literacy Among Engineering and Management

Students” was carried out by me and is genuine work and

all the information collected was authentic to the best of my

knowledge.

Suradhi Kabra

MBA (FT) 2 Years Roll no. : 72630052

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 Madhuban Institute of Professional Studies, Indore

CERTIFICATE

This is to certify that Suradhi Kabra, student of MBA (FT) 2

years 4th Semester in the year 2017-19 with Finance and HR,
specialization from Madhuban Institute of Professional Studies
has completed her Research project on “A Comparative
Study of Financial Literacy Among Engineering and
Management Students " under my guidance and supervision
and her work is original and genuine.

To the best of my knowledge and belief the report:

1) Embodies the work of the candidate herself.

2) Has duly been completed.
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 3) Fulfills the requirements of the ordinance relating to the
MBA degree of the university.

Internal Examiner External

Examiner

PREFACE

The bookish knowledge of any program, which we get from

educational institutions, is not enough to be used in our day-to-day
life. The more practical knowledge we have, the more beneficial it is
for our learning.

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To make the students aware of the working of the business world
every student of MASTER OF BUSINESS ADMINISTRATION (IV
Sem) has to undergo a major research project where they experiences
many aspects of business under the supervision of Professional
Managers.

I strongly believe that the knowledge gained from this experience is

more than the knowledge gained from the theories in the book.

PLACE: INDORE
DATE:

Suradhi
Kabra
M.B.A. II nd
Year,
Semester –
th
4
Roll No.
72630052

ACKNOWLEDGEMENT

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The duration of the project report was the one etched in my memory for the
long time to come. I do have certain people to thank for it being a
memorable experience.
Dr.Vikas Jain, (Principal) has been a source of inspiration and I would like
to thank him in all my humbleness.

Mr. Sandeep Patil my guide during the project period has been
the ever present pillar of support and guidance throughout. I am indeed
indebted to him for the experience and information he shared with me. His
suggestions and comments have made the report more valuable.

I would like to thank my family members, my friends and entire staff

of Madhuban Institute of Professional Studies, Indore for making the
atmosphere amicable and makes me feel at ease at the time of stress.

I sincerely thank for allowing me to conduct this project in their

Company and even provided me with every possible support in the
fulfilling of this project.

At last I am thankful to all those persons who help me directly

and indirectly to cover the wide aspect of Research Project.

With Sincere Thanks

Suradhi Kabra

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 CONTENTS

CHAPTER 1 INTRODUCTION
1.1: Meaning
1.2: Definition
1.3: The nature of financial literacy
1.4: Why financial literacy is so important
1.5: Objective of financial literacy
1.6: Summary
CHAPTER 2 LITERATURE REVIEW
CHAPTER 3 OBJECTIVES & HYPOTHESIS
CHAPTER 4 RESEARCH METHODOLOGY
4.1 Research design:
4.2 Research type
4.3 Data source:
4.4 Primary data:
4.5 Secondary data:
4.6 Sampling size:
4.7 Sampling technique:

CHAPTER 5 SCOPE AND LIMITATION

CHAPTER 6 ANALYSIS AND INTERPRETATION
CHAPTER 7 FINDINGS, SUGGESTIONS AND CONCLUSION
BIBLIOGRAPHY
ANNEXURE

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 CHAPTER-1
INTRODUCTION

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INTRODUCTION

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 1 Financial literacy is based upon providing individuals sound financial
knowledge and skills so that they can make informed financial decisions
and take effective actions regarding their personal money management
2 Financial literacy is the ability to understand how money works: how
someone makes, manages and invests it, and also expends it (especially
when one donates to charity) to help others. In-depth knowledge of
financial literacy is required to understand how money works and how it
can work for you – even when you’re sleeping – by investing in profitable
areas like the stock or money market.To understand money and how it
works, it’s important to understand common financial literacy principles
such as; financial goals, budgeting, investments, superannuation, contracts
and employment.
3
4

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This concept is applicable to both individuals and organizations. Individuals
must be able to balance a checkbook, comprehend personal income taxes, and
understand the concept of budgeting in order to make wise decisions with
money. These skills are vitally important; yet, many individuals lack this basic
knowledge and consequently are unable to meet their daily expenses.

Businesses, on the other hand, must have management who

understands financial statements, production schedules, costs sheets, and many
other types of reports in order to make decisions about the future of the
company

DEFINATION

Financial literacy is the confluence of financial, credit and debt management

and the knowledge that is necessary to make financially responsible decisions –
decisions that are integral to our everyday lives Financial literacy is the
education and understanding of knowing how money is made, spent, and
saved, as well as the skills and ability to use financial resources to make
decisions. These decisions include how to generate, invest, spend, and save
money.

THE NATURE OF FINANCIAL LITERACY

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Why financial literacy is so important

 Choice is everywhere: With so many options available to consumers, it’s

hard to know which one is the best. From different kinds of credit cards to
loans to investments, how do you know which option to choose? It’s like a
buffet with a variety of yummy looking selections. You can’t try them all
because your plate is only so big. Having a basic understanding of your
options is key to making sound financial decisions.

 Increases your confidence: I used to feel so stressed out when faced with
anything financially related. I relied on other people to tell me what to do.
Now, as an informed consumer, I feel better in the choices I’m making. If I
want to compare my options, I can easily check out what’s available
on RateSupermarket.ca. Their goal is to help Canadians find the best rate
for mortgages, credit cards, bank accounts, savings accounts, GICs, and
insurance quotes.

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Teach your kids: As parents, it’s up to us to teach our children how money
works. This way when they do venture out on their own, they don’t have to
learn the hard way! My parents taught me a little bit. I knew money was a
finite resource with my dad’s slogan, “Money doesn’t grow on trees”. I had
zero inkling about debt and its consequences. It will be different with my
daughters as I’m working on raising money smart kids.

Spot a scam: As someone who has been a victim of credit card fraud, I can
tell you from experience that it is awful! I made many mistakes with my
credit card and allowed myself to be an easy target for thieves. Boy, have
times changed! I’m well aware of what credit card scams to watch out for.
Don’t be a victim

Get the best value for your hard earned dollars: Before I make any big
financial decision, I research as much I can on the subject. For instance, I
recently purchased life insurance. I needed to figure out what kind of life
insurance I should buy and where I would find the best deal.

Manage debt before it manages you : I’m a prime example here with my high
interest loan for that stereo system. If I knew then what I know now, it
would have never happened. Prevention is great, but if you find yourself
already in a bad situation carrying lots of debt, learn your options and how
you can reduce it starting today.

Set financial goals: I’m a firm believer in setting goals and then tracking
progress towards it. Whether your financial goal is to buy a home, save for
retirement or a vacation, you’ll be ahead of the game by making a plan
how your going to reach that goal and then putting it into action. Setting
goals allowed me to buy a home and now I’m currently focusing on saving
for my daughters’ post-secondary education

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 Better quality of life: Understanding your finances means less stress. You’ll
always know where you stand financially and you have a plan in place to
reach your goals. I hated feeling confused about where my money is going
and felt like I never would have enough to cover my bills. By taking
control of my finances through budgeting and learning about money, I’m
in a better position now to handle whatever life throws my way. I don’t
feel like I’m in the dark anymore.

OBJECTIVE OF FINANCIAL LITERACY:

Know your financial self inside and out.: The number one key to becoming
truly smart about your money is to make sure that you know exactly where
you stand financially. This involves many different things. It can mean
doing an honest appraisal of your current net worth or it can mean working
with a therapist to get to the deepest roots of your money problems.

Learn to communicate appropriately about money with friends, family

members and others: Talking about money is a great way to get a better
education about finance. Unfortunately, this isn’t something that a lot of us
are good at. Money is a loaded topic and learning to talk honestly, calmly
and fairly about it takes time. The one small step that you can make today
is to choose a single person with whom you want to speak more about
money.

 Pay off debt, increase savings: Depending on where you are with your
finances, your goal might be to pay off existing debts or you may have
done that and are now ready to increase your savings. Whatever the case,
the goal here is to start putting more money into these things. You can start
small this month by making a single deposit into one of these accounts.
Give up something that costs you a bit of money this month and put the
money towards your debt of savings instead
.

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 Put together a personal finance team: You need professionals that can
assist you with your personal finances. This includes having a great bank,
a good mortgage provider, an attorney who understands your financial
goals and a tax preparer who can get you the most back on your taxes each
year. You may or may not need all of these people but surely you need
someone. The small step that you can take today is to identify a list of
professionals who you would like to have as a part of your team one day in
the future.

 Keep learning about money: Financial literacy means that you never stop
learning about money. There is always more to study. Make a commitment
to yourself to keep on top of this education. The one small step that you
can take today is to order a new book or sign up for a new finance class.
Consider exploring an area of personal finance that you’re not familiar
with yet to really challenge yourself with this first small step.

 There are many small steps that you can start taking immediately in order
to begin gaining literacy in finances. The important thing is that you not
only set those big goals but also start to take those small steps that will get
the ball rolling.

SUMMARY: Financial literacy means the ability to understand how money

works in a business and in personal life.

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Page 16
 CHAPTER-2
LITERATURE REVIEW

Defining financial literacy

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 Lusardi and Mitchell (2007) used the definition of OECD (2005).
Accordingly, financial education is defined as “the process by which
financial consumers/investors improve their understanding of financial
products and concepts, and through information, instruction, and/ or
objective advice, develop the skills and confidence to become more aware of
financial risks and opportunities to make informed choices, to know where to
go for help, and to take other effect actions to improve their financial well-
being”.

 Wachira& kihiu (2012) states that financial literacy helps consumers in being
prepared for difficult times by determining risk mitigate strategies, and in
using financial products effectively, most importantly in making plausible
decision

Financial literacy impacts financial decision making

 (Gale & Levine ,2010,holden Charles, Laura, Deanna & Beatriz, 2009)
Financial literacy matters a lot for financial decision-making. Financial
literacy is the ability to use knowledge and skills to manage financial
resources effectively for financial well being

 Pandey (2009) financial literacy provide people with cleaned transparent

information to help them make the best decision to full fill financial needs

 Cole and Shastry (2008) describes four-part model of education in which

financial education aims to increase financial knowledge, which improve
decision and finally financial outcomes such as money saved. Consumer
Bankers s financial behaviors and

 Matthew martin, (June 2007): effectiveness of financial education This

survey summarizes current research on financial literacy efforts. there is a
causal connection between increases in financial knowledge and financial
behavior; and the benefits of financial education appear to span a number of
areas including retirement planning, savings, homeownership, and credit use.

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 Luce Edward (2008): identified that the population that plays an activity part
in the economic process much more likely to identified with the rest of the
society

 Chakarborthy,K.C.(2009): affirms that economic growth can leave many

people in persistent poverty, if they do not have the necessary capacity to
participate in and benefit from the growth process.

 Hustun (2010): purposed at the financial literacy must also include

application of knowledge an individual can not be regarded as being
financially literate

 Chandan upadhyay & surjit mishra(2011): find that finance has become an
integral part of economy there is two way relationship between financial
system development & real sector growth.

 OCED INFE,(2011): A combination of awareness of knowledge, skill,

attitude ,&behavior necessary to make sound financial decision and
ultimately achieve individual financial wellbeing

 Xu & zia (2012): summarize the finding of various financial literacy studies
conducted across the world

 Maarten Cj vaan Rooji (2012): Relying on comprehensive measures of

financial knowledge, we provide evidence of a strong positive association
between financial literacy and net worth, even after controlling for many
determinants of wealth. We discuss two channels through which financial
literacy might facilitate wealth accumulation.

 Cole et al (2013): drawing the individual & firms working in informal sector
into the formal financial sector would be one of the fastest ways to faster
financial development in emerging market.

 Maratha MC cormick (2013): This review of the literature explores the state
of youth financial education and policy, including definitions and measures
of effectiveness.

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 Lusardi & Mitchell (2014): in the literature financial literacy is
interchangeably used with financial capability & economic literacy

CHAPTER-3

OBJECTIVES OF STUDY

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 OBJECTIVES OF THE STUDY

 To know the financial literacy level among Engineering and Management

students.

 To make a comparison of financial literacy level among Engineering and

Management students.

 To identify the financial literacy level of male respondents and female

respondents.

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 CHAPTER-4

RESEARCH METHODOLOGY

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MEANING OF REASEARCH

Research refers to a search for knowledge. Research simply put, is an

endeavour to discover answers to problems (intellectual and practical) through
the application of scientific method. The Webster’s International Dictionary
gives a very inclusive definition of research as “as careful, critical inquiry or
examination in seeking facts or principles, diligent investigation in order to
ascertain something". The 20th Century Chamber Dictionary defines research
as: a careful search or systematic investigation towards increasing the sum of
knowledge.

Research is essentially a systematic enquiry seeking facts through objective,

verifiable methods in order to discover the relationship among them and to
deduce from them broad principles or laws. Research is really a method of
critical thinking. It comprises defining and redefining problems, formulating
hypothesis or suggested solutions, collecting, organizing and evaluating data,
making deductions and making conclusions and at last, carefully testing the
conclusions to determine whether they fit the formulated hypothesis.

So a summary of some of the characteristics of research may help to clarify the

spirit, meaning, and methodology of research. The summary of characteristic
features of research follows:

o Research is highly purposive,

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 o Research involves the quest for answers to unsolved problems.

o Research is characterized by patient and unhurried activity.

o Research is logical and objective.

o Research is carefully recorded and reported.

o Research emphasizes the development of generalization of principles or

theories that will help in predicting future occurrences.

o Research is based upon observable experience or empirical evidence.

o Research generally involves a hypothesis or set of hypotheses concerning

explanation of a phenomenon.

o Research demands accurate observation and description.

o Research involves gathering new data from primary or first hand sources,

The system of collecting data for research project is known as research

methodology My research is exploratory research where problem is not
defined clearly

In my research following methodology is adopted:-

a. Review of available literature has been carried out for study of financial
literacy.

b. Questionnaire method is used for data collection.

RESEARCH DESIGN

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 A research design is a guideline for collecting and utilizing the data so that
desired information can be obtained with sufficient precision and hypothesis
can be properly used.

A research design is arrangement of condition of collection and analysis of data

in a manner aims to combine relevance to the research purpose with economy
and procedure.

Task of define the research problem is the preparation of research project,

popularly known as “research design” decision regarding what ,where, when,
how much, by what mean concerning an inquiry or a research study constitute
a research design.

I collect the data the data through questionnaire; I used convenience sampling
technique for collecting data from individual.We have received statistics through
engineering and manager students. First of all, we got a questionnaire from all the
students, then given the number of according their choosing answer then the average
of them all. which helpful for knowing individuals knowledge for financial
literacy

DATA SOURCES

For the purpose of the study data has been collected through two sources
among that –

 Primary sources

 Secondary sources

Primary data : Primary data means original data that has been collected
specially for the purpose in mind. It means someone collected the data from the
original source first hand. Data collected this way is called primary data.

Primary data methods include:

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 Questionnaires.
 Interviews.
 Focus group interviews.
 Observation.
 Case-studies.

In this study I have collected the data through questionnaire got filled by
management and engineering students.

Secondary data: Secondary data refers to data that was collected by someone
other than the user. Common sources of secondary data for social science
include censuses, information collected by government departments,
organizational records and data that was originally collected for other research
purposes.

Secondary data methods include:

 Financial Statements

 Customer details, like name, age, contact details, etc.

 Reports and feedback

There are several external sources from where the secondary data can be
collected. These are

 Information from other government departments, like social security, tax

records, etc.

 Business journals

 Social Books

 Business magazines

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  Libraries

 Internet, where wide knowledge about different areas is easily available.

In this study secondary data is gathered through personal research papers.

Sample size

Sample size determination is the act of choosing the number of observations or

replicates to include in a statistical sample. The sample size is an important
feature of any empirical study in which the goal is to make inferences about a
population from a sample.

In my research target sample size is 50

Sample techniques

Convenience

CHAPTER-5
SCOPE
&
LIMITATION

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 Scope of the study

In this study the researcher has evaluated the awareness level about the
financial literacy and this report gives a clear view of the role of developing
financial literacy among the engineering and management students. The
findings of the study and conclusion drawn are based on the analysis of the
information collected by intern through questionnaire and communication.

Limitations of the study

 The respondents were limited and cannot be treated as the whole population.

 The respondents may be biased.

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 Time was the major constraint.

 The accuracy of indications given by the respondents may not be considered

adequate.

CHAPTER-6
ANALYSIS

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 AND
INTERPRETATION

DATA ANAYLYSIS & INTERPRITETION

Respondent profile

Table no 1

(gender of respondent)

Frequency % Valid % Cumulative %

Valid Male 24 48.0 48.0 48.0

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 Female 26 52.0 52.0 100.0
Total 50 100.0 100.0

Figure no. 1

Object 3

Interpretation:

The above pie chart shows 52% respondent are female and 48 %
male

Table no 2
( Qualification of respondent )

Frequency % Valid Cumulative

BBA % %

PURSUING 9 18 18 18
BE.\ B.TECH
Valid pursuing 16 32 32 50

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 M.E. \
M.TECH
PURSUING 9 18 18 68
MBA
PURSUING 16 32 32 100
Total 50 100 100

Figure no. 2

Object 5

Interpretation
The above pie chart shows 48% Respondent of public sector
bank are Graduate where as 60% Respondent of private sector bank employees
are Graduate.

Table no 3

(gender of respondent)

SCHOOLING

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 Frequenc Percent Valid Cumulative
y Percent Percent
CBSE 13 26.0 26.0 26.0
MP
Valid 37 74.0 74.0 100.0
BOARD
Total 50 100.0 100.0

Figure no. 3

The above pie chart shows 74% Respondent of MP board and 26% Respondent
of CBSE

Questions about financial literacy

Table no 1

Engineering students Management students

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Personal financial planning involve Personal financial planning involve
Frequency % Frequency %
Establishing Establishing
an adequate an adequate
financial financial
record record
keeping 3 12 keeping 1 4
Minimize Minimize
Valid Valid
expenses 2 8 expenses 1 4
Prepare Prepare
plan for plan for
future 8 32 future 3 12
Both A & C 10 40 Both A & C 14 56
All of these 2 8 All of these 6 24
Total 25 100 Total 25 100

Figure no. 1

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 Interpretation

Majority of the respondent have given the incorrect answer that personal
financial planning involve maintaining adequate financial record and
prepare plan for future.

Table no 2

Engineering students Management students

The most liquid assets The most liquid assets

Frequency % Frequency %

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 Money Money
in fixed in fixed
7 28 3 13
deposit deposit
account account
Money Money
Valid in Valid in
9 36 15 60
saving saving
account account
A car 3 12 A car 5 20
A house 5 20 A house 2 8
Total 25 100 Total 25 100

Figure no. 2

Object 7

Object 9

Interpretation

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 Majority of the respondent have the correct answer that the most liquid
assets money in saving account.36% engineering students has given the
correct answer rather than 60% management student given correct answer.

Table no 3

Engineering students Management students

You can receive your credit card You can receive your credit card
from from
Frequency % Frequency %
A
commercial
CIBIL 3 12 bank 20 80
A
commercial
bank 16 64 Post office 3 12
Post office 6 24 CBIL 2 8
Valid Total 25 100 Valid Total 25 100

Figure no. 3

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 Object 11

Object 13

Interpretation

Majority of the respondent have the correct answer that you can receive
your credit card from commercial bank 64% engineering students has given
the correct answer rather than 80% management student given the correct
answer

Table no 4

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 Engineering students Management students

You will improve your credit You will improve your credit
worthiness by worthiness by
Frequency % Frequency %
Visiting Visiting
your local your local
5 20 3 12
commercial commercial
bank bank
Showing Showing
no record 6 24 no record 10 40
Valid Valid
of defaults of defaults
Paying Paying
cash for all cash for all
14 56 12 48
goods and goods and
service service
Total 25 100 Total 25 100

Figure no. 4

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 Object 15

Object 17

Interpretation

Most of the student says that creditworthiness can be improved by

showing no record of default where as engineering student says that it can
be improve by paying cash for all goods and service.

Table no 5

Engineering students Management students

Your main reason to purchase insurance Your main reason to purchase insurance
Frequency % Frequency %

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 Protect you Protect you
from loss from loss
1 4 3 12
recently recently
incurred incurred
Provide Provide
you with you with
excellent 7 28 excellent 3 12
investment investment
Valid Valid
return return
Protect you Protect you
from from
13 52 17 68
sustaining sustaining
future loss future loss
Decrease Decrease
the chance 4 16 the chance 2 8
of accident of accident
Total 25 100 Total 25 100

Figure no. 5

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 Object 20

Object 23

Interpretation

Majority of the respondent have the correct answer that your main reason to
purchase insurance 52% engineering students has given the correct answer
rather than 68%management student given the correct answer.

Table no 6

Engineering students Management students

Would not ordinarily be covered Would not ordinarily be covered

under a homeowners policy under a homeowners policy
Frequency % Frequency %
Valid War 1 4 Valid War 2 8

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Earthquake 3 12 Earthquake 2 8
Flood 9 36 Flood 2 8

Your being Your being

sued by sued by
7 28 7 28
someone someone
for slander for slander

All of the All of the

5 20 12 48
above above
Total 25 100 Total 25 100

Figure no. 6

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 Object 25

Object 27

Interpretation

Most of the student says that would not ordinarily be covered under a
homeowners policy by all of the above options where as engineering
student says that Your being sued by someone for slander.

Table no 7

Engineering students Management students

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Normally by which assets displays Normally by which assets displays
the highest fluctuation over time the highest fluctuation over time

Frequenc
Frequency % %
y
saving saving
1 20 5 4
a\c a\c
Bond 5 32 Bond 8 20
Valid Stock 12 16 Valid Stock 4 48
Don’t Don’t
7 28 7 28
know know
Total 25 100 Total 25 100

Figure no. 7

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 Object 30

Object 32

Interpretation

Most of the student says that stock is the assets display the highest
fluctuation over the time. Where as engineering students says that bond is
the assets display the highest fluctuation over the time.

Table no 8

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 Engineering students Management students

Among which are the following are Among which are the following are
post office saving post office saving
Frequency % Frequency %
Canara Canara
robeco 2 8 robeco 2 8
fund fund
Public Public
provident 4 16 provident 7 28
Valid fund Valid fund
National National
saving 9 36 saving 15 60
certificate certificate
Both b & Both b &
10 40 1 4
c c
Total 25 100 Total 25 100

Figure no. 8

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 Object 34

Object 36

Interpretation

Most of the student says that among the following are post offices (60%)
Management students says that national saving certificate where as only
(36%) engineering student says that both a&c. Most of the student has
given the correct answer

Table no 9
Engineering students Management students

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How often do you borrow How often do you borrow
Frequenc
% Frequency %
y
Never 14 56 Never 13 52
Once Once
in the 8 32 in the 5 20
month month
Valid 2-3 Valid 2-3
time in time in
3 12 7 28
a a
month month
Total 25 100 Total 25 100

Figure no. 9

Object 38 Object 40

Interpretation

Majority of the respondent have the correct answer that how often do you
borrow. They all say that never.

Table no 10

Engineering students Management students

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What do you do with your pocket What do you do with your pocket
money money
Frequenc
% Frequency %
y
Spend Spend
5 20 9 36
it fully it fully
Save a Save a
portion portion
of it in 8 32 of it in 7 28
Valid the Valid the
bank bank
save it save it
cash in 12 48 cash in 9 36
hand hand
Total 25 100 Total 25 100

Figure no. 10

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 Object 42

Object 44

Interpretation

Most of the respondents have given the incorrect answer they says that
save their pocket money cash in hand. But not save in the bank is correct
answer

Table no 11
Engineering students Management students

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Do you intimate your parents Do you intimate your parents
about the expenditure at the about the expenditure at the
collage in advance collage in advance

Frequency % Frequency %

yes 11 44 yes 17 68
no 5 20 no 2 8
Valid Valid
sometimes 9 36 sometimes 6 24

Total 25 100 Total 25 100

Figure no. 11

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 Object 46

Object 48

Interpretation

Majority of the respondent have the correct answer that they intimate your
parents about the expenditure at the collage in advance. 44% engineering
students says yes rather than 68 % management student says yes.

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 Table no 12

Engineering students Management students

Auto insurance companies Auto insurance companies

determine your premium determine your premium
Frequenc Frequenc
% %
y y
Type and Type and
age of 11 44 age of 8 33
vehicle vehicle

Completio Completio
n of a n of a
Valid driver 6 24 Valid driver 3 4
education education
course course
all of all of
8 32 14 63
above above
10 10
Total 25 Total 25
0 0

Figure no. 12

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 Object 50

Object 52

Interpretation

Majority of the respondent have given the correct answer that auto
insurance companies determine your premium by type and age of vehicle.

Table no 13

Engineering students Management students

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The main reason to purchase The main reason to purchase
medical insurance medical insurance
Frequency % Frequency %
You are You are
normally normally
covered for 4 16 covered for 6 24
pre-existing pre-existing
conditions conditions
You have a You have a
better better
chance to 4 16 chance to 1 4
Va
Valid chose chose
lid
doctor doctor
Compensate Compensate
for future for future
15 60 12 48
medical medical
expenses expenses
None of the None of the
2 8 6 24
above above
Total 25 100 Total 25 100

Figure no. 13

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 Object 54

Object 56

Interpretation

Most of the respondents have given the incorrect answer the main reason
to purchase medical insurance is compensated future medical expenses.

Table no 14

Engineering students Management students

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Financial planning helps in Financial planning helps in
achieving our financial goals achieving our financial goals

Frequency % Frequency %

yes 16 64 yes 18 72
No 3 12 No 1 4
Valid Don’t Valid Don’t
6 24 6 24
know know
Total 25 100 Total 25 100

Figure no. 14

Object 58 Object 60

Interpretation

Most of the respondent says that yes! Financial planning helps in

achieving our financial goals.

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 CHAPTER-7
FINDINGS
CONCLUSION
AND
SUGGESTION

Financial literacy is the education and understanding of various financial areas.

This topic focuses on the ability to manage personal finance matters in an efficient

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manner, and it includes the knowledge of making appropriate decisions about
personal finance such as investing, insurance, real estate, paying for college,
budgeting, retirement and tax planning

Financial literacy helps individuals become self-sufficient so that they can

achievefinancial stability. Those who understand the subject should be able to
answer several questions about purchases, such as whether an item is required,
whether it is affordable, and whether it an asset or a liability.
In the earlier chapters, detailed examination of various variables affecting
financial literacy among engineering and management students The findings of
the study have been mentioned earlier, but to further throw light on the
interpretations, the following concluding observations were found to be
important.The present chapter is divided into three parts findings, suggestions
and conclusion.

5.1: FINDINGS
 When it was asked that what is involved in financial planning very few
students have given correct answer that it involves establishing an
adequate financial record keeping, minimizing expenses and preparing
plan for future.
 To identify the knowledge about liquidity concept it was identified that
few engineering students are aware of liquidity concept whereas more
management students know that money in savings account is more
liquid.
 Maximum students of both management and engineering discipline
know that they can receive credit card from commercial banks.
 Very few engineering students know that how creditworthiness can be
improved on the contrary a marginally higher percentage of
management students are aware about the same.
 Majority of engineering and management students are aware of the fact
that reason to purchase insurance is to get protection from future losses.

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  When it was asked that what would not ordinarily be covered under a
homeowner’s policy the correct answer i.e. you being sued by someone
for slander is given by very few management and engineering students.
 Very few Engineering students know that stocks are more fluctuating
financial asset as compared to bonds and money in savings account.
However more management students are aware of this fact.
 When I tried to know about the awareness regarding post office savings
scheme I came to know that some engineering students were aware
about that whereas surprisingly management students didn’t know that
Public provident fund and National Savings certificate are post office
saving schemes.
 When it was asked how often you borrow both management and
engineering students answered that they never borrowed except few
students.
 When asked what you do with your pocket money most of the students
didn’t given correct answer. They have chosen other options like save it
as cash in hand or spend it fully. This reflects their spending behavior.
 More management students intimate their parents in advance about the
expenditures at college as compared to engineering students.
 Engineering and management students have poor knowledge about the
fact that premium on vehicles is based on the type and age of vehicles.
 More engineering students know that the main reason to purchase
medical insurance is that it compensates for future medical expenses.
 Most of the students think that proper financial planning helps in
achieving our financial goals.

5.2 : SUGGESTIONS

On the basis of above findings of the study, a few suggestions are put forward,
and if followed by students of both disciplines may help them in the future
financial planning

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 I suggest more emphasis on financial education should be given to college
students as there is a low level of literacy prevalent amongst them.

. 5.3 CONCLUSION

There are still many students of management and engineering discipline who
have given many incorrect answers which show that their awareness towards
basic financial concepts is very poor. Hence their is a high need for educating
them and making them financial literate
However it can be seen that both engineering and management student do not
have a high score of financial literacy which shows that there does a high need
of giving them know about financial literacy as it will help them in making
better financial decision in life. If any individual is earning good but is not
able to control his/ her expenses is not able to do budgeting and not able to
invest systematically and regularly than it will affect his financial well being.
So for the economic prosperity of the country it is very essential that the
younger generation of over country should be financially literate.

Page 62
BIBLIOGRAPHY

Page 63
BIBLIOGRAPHY :

 LUSARDI, Annamaria, MITCHELL, Olivia S. (2007a). Baby boomer

retirement security: the roles of planning, financial literacy, and housing wealth.
Journal of Monetary Economics, Vol. 54, PP 205-254

 LUSARDI, Annamaria, MITCHELL, Olivia S. (2007b). Financial literacy and

retirement preparedness: Evidence and implications for financial education,
Business Economics, Vol.42, Iss.1, pp.35-44.

 COLE, Shawn, SAMPSON, Thomas, ZIA, Bilal. (2008). Prices or knowledge?

What drives demand for financial services in emerging markets?, Journal of
Finance, Vol. 66, No. 6, pp. 1933-1967.

 Chakraborthy, K.C. (2009) Introductory Notes. In Sameer Kochaar (Ed.)

Speeding Financial Inclusion, pp 19-23, New Delhi, Academic foundation.

 HUSTON, Sandra J. (2010). Measuring Financial Literacy, Journal of

Consumer Affairs, Vol. 44, No. 2, pp. 296-316.

 VAN ROOIJ, Maarten, LUSARDI, Annamaria., ALESSI, Rob. (2011).

Financial literacy and stock market participation, Journal of Financial Economics,
Vol. 101, pp. 449-472.

 ATKİNSON, Adele. and MESSY, Flore-Anne (212). Measuring financial

literacy: Results of the OECD / International Network on Financial Education

Page 64
 (INFE) Pilot Study, OECD Working Papers on Finance, Insurance and Private
Pensions, No. 15, OECD Publishing. http://dx.doi.org/10.1787/5k9csfs90fr4-en

 VAN ROOIJ, Maarten., LUSARDI, Annamaria, ALESSI, Rob. (2012).

Financial literacy, retirement planning and household wealth, Economic Journal,
Vol. 122 (May), pp.449-478.

 LUSARDI, Annamaria, MITCHELL, Olivia S., and CURTO, Vilsa (2014) :

Financial literacy among the young, Journal of Consumer Affairs, Vol. 44, No. 2,
pp. 358-380.

ANNEXURE

Page 65
QUESTIONNAIRE
FOR THE PURPOSE OF REASEARCH PROJECT MBA

A comparative study of financial literacy among engineering and

management students

PART -A

Please tick (√ ) the appropriate answer –

 Gender

 MALE

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  FEMALE

Qualification

 BBA PURSUING

 B.EB.TECH PURSUING

 M.E./M.TECH

 MBA PURSUING

Schooling

 CBSE

 MP BOARD

 ICAE

PART –B

Please tick (√ )the appropriate answer –

1. Personal financial planning involve –

A) Establishing an adequate financial record keeping

B) Minimize expenses

C) Prepare plan for future

D) Both A & C

E) All of these

2. The most liquid asset –

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 A) Money in fixed deposit account

B) Money in saving account

C) A car

D) A house

3. You can receive your credit card from –

A) CIBIL

B) A commercial bank

C) Post office

D) University

4. You will improve your creditworthiness by –

A) Visiting your local commercial bank

B) Showing no record of defaults

C) Paying cash for all goods and service

D) Donating money to charity

5. Your main reason to purchase insurance –

A) Protect you from loss recently incurred

B) Provide you with excellent investment return

C) Protect you from substance future loss

D) Decrease the chance of accident

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6. -------- would not ordinarily be covered under a homeowners policy

A) War

B) Earthquake

C) Flood

D) Your being sued by someone for slander

E) All of the above

7. Normally which assets displays the highest fluctuation over the time.

A) Saving account

B) Bond

C) Stock

D) Don’t know

8. Among which are the following are post office saving-

A) Canara robeco fund

B) Public provident fund

C) National saving certificate

D) Both B & C

E) None of the above

9. How often do you borrow?

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 A) Never

B) Once in a month

C) 2-3 time in a month

10. What do you do with your pocket money?

A) Spend it fully

B) Save a portion of it in the bank

C) Save it cash in hand

11. Do you intimate your parents about the expenditures at the collage in
advance

A) Yes

B) No

C) Sometimes

12. auto Insurance companies determine your premium based on –Record of

accidents

A) Type and age of vehicle

B) Compilation of a driver education course.

C) All of the above

13. The main reason to purchase medical insurance –

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 A) You are normally covered for pre-existing conditions

B) You have a better chance to chose doctor

C) Compensate for future medical expenses

D) None of the above

14. Do you think that proper financial planning helps in achieving our
financial goals ?

A) Yes

B) Know

C) Don’t know

THANK YOU

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