2016

A study on financial
literacy among the
self-finance course
students of Dibrugarh
University

SUBMITTED BY
XYZ
MBA (FT)
CLASS ROLL NO- 001
EXAM ROLL NO- 001
CENTER FOR MANAGEMENT
STUDIES
DIBRUGARH UNIVERSITY
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CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
Post global financial crisis, Financial Literacy and Financial Inclusion has become a subject of
considerable interest among policy makers, researchers and other stakeholders. This heightened
interest, reflects a better understanding of the importance of financial inclusion for economic as
well as social development. Across the nations, both economically rich and fiscally poor, it is being
increasingly recognized that access to financial services has a critical role in reducing extreme
poverty, boosting shared prosperity, and supporting inclusive and sustainable development.
Similarly, financial literacy is rapidly being recognized as a core skill, essential for consumers
operating in an increasingly complex financial landscape.
Financial literacy is a basic concept in understanding money and its use in daily life. This includes
the way income and expenditure are managed and the ability to use the common methods of
exchanging and managing money. Further, financial literacy incorporates an understanding of
everyday situations that need to be understood such as insurance, credit and an appreciation of
savings and borrowings. The understanding of financial terms and concepts includes an
understanding of key financial concepts central to investing and managing funds to increase wealth
and security.
Financial literacy is mainly concerned with better planning of retirement life, gradual wealth
accumulation and better financial decision making. So to be financially literate becomes important
from the initial stages of one’s career. But due to some personal or professional hindrances they
become financially illiterate. This leaves them with inadequate knowledge about financial
dealings, inappropriate decisions etc. so, they have to be enhanced with financial knowledge and
tools which are needed to make informed decisions. Financial literacy impacts the promotion of
financial inclusion which ultimately results in financial stability of any economy. The need for
financial literacy in India has gained importance because of low level of literacy and large section
of population which is financially excluded from the formal financial set up.
Financial literacy is important at several levels. It has major implications for the welfare of
individuals in the management of their financial affairs. Financial literacy influences how people
save, borrow, invest and manage their financial affairs. It therefore affects their capacity to grow
their wealth and income, and has significant implications for people’s lifestyle choices.
Financial literacy helps individuals to improve their level of understanding of financial matters
which enables them to process financial information and make informed decisions about personal
finance. Having financial literacy skills is an essential basis for both avoiding and solving financial
problems, which, in turn, are vital to living a prosperous, healthy and happy life. Most importantly,
the lack of financial literacy may lead the young adults, the future labor force contributors, to
become involved in a higher level of financial problems during school life, which has a significant
effect on their present and future family, and professional life.
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This study aims at assessing the level of awareness of financial literacy among undergraduate
as well as post graduate students of Dibrugarh University. It is believed that university students
eventually will need to face and tackle financial decisions, be it savings, insurance or future
investment projects. As such, the study assesses aspects in financial literacy such as, its level
and importance to students, their perceptions about finances, constraints and measures to
improve financial literacy. The perimeters and definition of financial literacy in this study
attempts to understand the literacy of university students in Dibrugarh University with respect
to financial decisions.

1.2 NEED OF THE STUDY

To our knowledge a few studies were conducted in India as the concept is relatively new,
therefore, an attempt has been made to study the level of financial literacy of university
students. This study aims to clarify the financial literacy level and the financial habits of
university students so future researchers and practitioners can use the information to identify
and assist students at differing financial literacy levels. With the increased interest in the
financial literacy level of university students this study will add to the body of knowledge and
lead to continued research on the university student population by providing a reference point
for future researchers. Through this study we are aiming to inform, enlighten and heighten
campus awareness of the level of financial preparedness of recent university graduates. The
study would help to know the need or steps to be taken to improve or update the existing level
of financial literacy

1.3 OBJECTIVE
 To determine the level of financial literacy of Dibrugarh University students
 To study the financial habits of university students
 To suggest measures so as to increase the Financial Literacy and awareness among the
students

1.4 RESEARCH METHODOLOGY

Research design: Quantitative research is conduct through using the survey research, using
the methods like questionnaires. In this research, SELF-FINANCED Course’s students are
treated as target population in order to complete this research.

Sample design:
Target population: The main target population for this study of financial literacy among
university students will be the students of self-financed courses. The population of
university students is 1855.
Sampling Technique: In this research we used convenience sampling due to the high
accessibility for the research. Plus, this technique is considered easiest, cheapest and least
time consuming.
Sampling Size: There are 66 questionnaires forms have been distributed to University
students in order to retrieve data in this quantitative research. 66 samples were collected.
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Data collection method: This data collection method consists of two sources, which are
primary sources and secondary sources. In this case, our studies only use the primary data.

1.5 LIMITATIONS OF THE STUDY

 Several limitations had been encountered during the research including small sample size,
design of the questionnaires, limited resources, and limited geographic coverage.
 The study focuses on the level of financial literacy they possess and the results may not
ensure the financial wellbeing of the sample.
 Data was collected among the students of Dibrugarh university, therefore the results cannot
be generalized
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CHAPTER II
2.1 LITERATURE REVIEW
As the financial landscape changes and the populations‟ economic safety net erode, employees
have to be financially savvy to be able to wisely manage their finances to reduce financial
insecurities (Center for Responsible Lending & Demos, 2005). Workers are now responsible for
managing their retirement accounts, the future availability of social services are unsure and health
insurance benefits are no longer guaranteed with employment (Center for Responsible Lending &
Demos, 2005; Braunstein &Welch, 2002; Chen &Volpe, 1998). With these social and societal
changes, the financial arena gets harder to navigate. It is imperative that everyone, including
university students, know how to manage their finances. After two years of post-secondary
education, upon entering the working environment, graduates are expected to make decisions
regarding their financial future. These trends and issues demonstrate the importance of being a
financially literate university graduate.

Research has endeavored to provide analytical insights to shape policy interventions. Evidence
from around the world presents disturbing and widespread deficiency in financial literacy. The
evidence has led to the launch of financial literacy programs in many countries. While the
programs vary widely in their scope and approach across countries, the underlying objectives are
to improve the financial attitude, the financial behavior and the financial knowledge of individuals
to enable them and their families to make choices that improve their financial well-being.

[1]VISA study ranks India at the 23-rd position among the 28 countries surveyed. Their
study found that the children and the young have significantly lower level of literacy
compared to adults. The findings suggest that high financial knowledge is not widespread
among Indians. Less than one-fourth rank among the highly knowledgeable by the OECD
approach. The financial knowledge among Indians appears to be low by global standards.
The basic principles of money and household finance, such as compound interest, impact
of inflation on rates of return and prices, and the role of diversification are not well
understood. As most personal financial decisions involve these concepts, their limited
understanding is a serious matter.
[2]The Financial Literacy (2012) stated that most young people had a relatively poor
financial literacy and a got difficulties to even budget. As such, being older is not
necessarily wiser in terms of decisions when it comes to money and finance matters.
According to Ambre (2012) and the Economic Times (2012) state that financial literacy
starts at home itself where children are educated about how to handle money such as to
save and spend wisely. However, Huston (2010) found it essential to measure financial
literacy in order to understand educational impact and barriers to financial decisions.

[3]Beal and Delpachitra ,the findings of all the Australian study, shows that there is a
definite lack of financial skills and knowledge among people with certain demographic
characteristics and that this problem needs to be addressed by focusing on education,
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evaluation and monitoring of national education programs and other initiatives, as well as
the ongoing maintenance of realistic benchmarks for the continuation of measuring
financial literacy.

[4]Mandell, Huddleston-Casas et al, Williams-Harold , the National Council on Economic

Education (NCEE, 2005) and the Jumpstart Coalition investigated financial literacy levels
among US high school students and concluded that they demonstrated a lack of both
personal financial skills and knowledge. Studies have also shown that university students
in the US have inadequate knowledge on personal Finance
[5]In Financial Service Authority (FSA) the survey consisted of 5328 people aged 18-40.
It assessed patterns of attitude and behavior and also included a ‘money quiz”. The survey
represented financial capability as encompassed by four different areas like managing
money, planning ahead, making choices and getting help, many people are failing to plan
ahead and many people are taking on financial risks without realizing it. Younger people
are on average less financially capable than their elders. One in twelve people in the United
Kingdom do not have access to a bank account, so they have limited financial choices and
incur higher costs
[6]Mitchell, Poterba et al. reports inadequate financial literacy which raises serious
concerns about the ability of individuals to secure their financial well-being. There is
evidence that individual’s under-save, fails to invest wisely and are often indebted. . Such
behavior is also evident among youth, across nations.

Financial Planning enables an individual to frame appropriate budgets which in turn helps them to
track his finances and meet the ends. Financial literacy is a global concern. The level of financial
literacy required depends upon the financial needs and behavior of an individual. From the above
studies, it is inferred that financial literacy is highly influenced by age, region or country in which
the individual resides, the financial environment which he experiences, the level of income, socio
demographic factors etc. The need to know the level of financial literacy of various groups is
inevitable. This study focuses on measuring the level of financial literacy among the university
students.

2.2CONCEPTUALIZATION OF FINANCIAL LITERACY

2.2.1 LITERACY
To fully understand and appreciate the concept of financial literacy a full understanding of the
meaning of the word “literacy” is necessary. Literacy as defined by the Oxford English Dictionary
is “the quality or state of being literate; knowledge of letters; condition in respect to education
especially the ability to read and write.” The Merriam-Webster definition of literacy is “the quality
or state of being literate.” Both the Oxford English Dictionary and Merriam-Webster defined
literacy as “the quality or state of being literate,” but what does it mean to be literate? Oxford
English Dictionary defined literate as “acquainted with letters or literature; educated, instructed,
learned; of or pertaining to letters, literary men or literature; a liberally educated or learned person;
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one who can read and write.” Merriam-Webster defines literate as “educated, cultured; able to read
and write; versed in literature or creative writing; lucid, polished; having Knowledge or
competence.”
The preponderance of the emphasis on language in definitions is understandable given the origins
of the word literacy. The word literacy was derived in 1886 from the word literate. Literate is the
current evolution of the 1432 word literate which was derived from the Latin word litterae which
means letters or literature. It is now being recognized that literacy is not limited to language.
Knowledge of a particular subject or a particular type of knowledge and having knowledge or
competence as defined by Cambridge Dictionaries Online and Merriam-Webster respectively and
the state of being educated, instructed or learned as defined by Oxford English Dictionary
recognizes the evolution in the use of the word literate.

2.2.2FINANCIAL LITERACY
A review of synonyms in Roget’s New Millennium Thesaurus (2006) for the words “literate,
knowledge and competence” reveals that “proficiency, resourcefulness and skilled” create a theme
for synonyms. A person proficient in a skill area is able to understand and evaluate issues
pertaining to the skill area while being aware of the potential consequences. A resourceful person
is aware of when they lack the necessary knowledge to make informed decision and they have the
forethought to obtain the information to ensure that the best possible decision is made.

Mason and Wilson (2000) defined financial literacy as “an individual’s ability to obtain,
understand and evaluate the relevant information necessary to make decisions with an awareness
of the likely financial consequence.” This shows that being proficient, skilled and knowledgeable
in financial manners and being able to make decisions with an understanding of their consequences
shows your level of financial literacy. Being financially literate is not limited to persons who are
proficient and knowledgeable. The resourceful person who is aware of their limitation in certain
financial matters but is able to find the appropriate sources to gain the necessary knowledge to be
able to make an informed decision is also financially literate. Mason and Wilson (2000) made it
clear that being financially literate does not guarantee that a person ill make sound financial
decisions, once a person is aware of the consequences of their financial decisions and choices they
are financially literate even if the consequence will be negative.
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CHAPTER III
ANALYSIS AND INTERPRETATION OF DATA

In this chapter an attempt has been made to analyze and interpret all information collected
from students of Dibrugarh University to examine the financial literacy level among students. All
interpretations are based on the objectives taken for the study. Here we are doing analysis and
interpretation with the help of different table and diagrams on the basis of criteria’s to arrive at
conclusion.
TABLE NO 3.1
Categorization of respondents on the basis of gender

Particulars No of respondents Percentage (%)

Male 38 58
Female 28 42
Total 66 100%

FIGURE NO 3.1
Categorization of respondents on the basis of gender

Gender

28, 42%

38, 58% MALE

FEMALE
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Interpretation:
The above table and figure showing the gender wise distribution of 66 respondents in which
38 respondents are male the rest 28 respondents are female. From the above table the observed
ratio of male and female is 19:14 and in percentage wise their distribution is 58 percent and 42
percent respectively.

TABLE NO 3.2
Categorization of respondents on the basis of age
No of Percentage
Age groups respondents (%)

18-22 years 47%

31
23-26 years 23 35%
27-30 years 12 18%
30 above 0 0%
Total 66 100%

FIGURE NO 3.2
Categorization of respondents on the basis of age

Age
30 ABOVE
27-30 0%
18%

18-22
47%

23-26
35%
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Interpretation:
Above table and figure showing the division of 66 respondents according to their belonging
age group. Out of 66 respondents 31 respondents are between the age of 18-22 years i.e. 47%
percent, 23 respondents are between the age of 23-26 years i.e. 18% percent, 12 respondents
belongs to the age group of 23-30 years i.e. 18% percent and no respondent belongs to the age
group of 30 years and above. Majority of respondents are belongs to the age group of 18-22 years

TABLE NO 3.3
Categorization of number of respondents on the basis of departments
No. of Percentage
Department respondents (%)
CMS 9 14%
DUIET 36 54%
CCS 12 18%
CJS 9 14%
total 66 100%
Source: Field study
FIGURE NO 3.3
Categorization of number of respondents on the basis of departments

Department
CJS, 9, 14% CMS, 9, 14%

CCS, 12, 18%

DUIET, 36, 54%

Interpretation:
Above table and figure showing the showing respondents on the basis of their departments. 14%
belongs to CMS, 54% belongs to DUIET, 18% belongs to CCS and 14% belongs to CJS.
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TABLE NO 3.4
Categorization of respondents on the basis of educational qualification
Educational No. of Percentage
qualification respondents (%)
Undergraduate 43 65%
Post graduate 23 35%
Total 66 100%

FIGURE NO 3.4
Categorization of respondents on the basis of educational qualification

Educational qualification
undergraduate post graduate

post graduate
35%

undergraduate
65%

Interpretation:
The above table and figure showing the categories of respondents on the basis of their educational
background. In the study out of total 66 respondents 43 students are undergraduate and 23 students
are post graduate. In percentage term it is 65% and 35% for undergraduate and post graduate
respectively.
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Table 3.5
The level of financial literacy among university students
Strongly Strongly Not
Sl agree Agree Neutral Disagree disagree responded
no Statements (%) (%) (%) (%) (%) (%)
I am able to read analyses, manage and
1 communicate financial matters 23 38 23 9 7 0
I know the basic concept of management of
2 money 9 45 21 14 11 0
3 I understand financial terms and concepts 6 36 33 12 11 2
I know the basic difference between saving and
4 investment 20 32 23 13 9 3
I have knowledge about all the financial products
5 available in the market 15 11 32 27 14 1
6 I know how to set up a personal budget 20 30 27 15 8 0
I know about the financial awareness program to
7 improve financial knowledge 17 17 26 26 13 1
8 I know how to make financial plans for future 15 14 21 21 26 3
I know how to save money in different financial
9 avenue 20 15 15 26 23 1

Interpretation of statements in table 3.5

Perception of definitions and theories of financial literacy
Statement 1 depicts that respondent’s agree with the statement that they have the Ability to read,
analyze, manage and communicate regularly financial theories definitions
Statement 2 depicts that respondents agree that they know the basic concepts of the management
of money. It implies that respondents lack in the basic information
Statement 3 is again on the agree side that respondents can understand financial terms and
concepts. This means there is a lack of financial literacy among them
Statement 4 is depicting that respondents have a basic knowledge regarding savings and
investment.
Ability to manage finance
Statement 5 depicting that majority of the respondents disagree with the statement that they knowledge
about all the financial products available in the market
Statement 6 is again on the disagree side that respondents do not know how to set up a personal budget.
Statement 7 is on disagree side as most of the respondent disagree with the statement that they know about
the financial awareness program to improve financial knowledge.
Statement 8 depicting that majority of the respondents do not know how to make financial plans for future.
Statement 9 is depicting that more than half of the respondents do know regarding how to save money.
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Table 3.6
Financial products known by respondents
YES NO
SAVING BANK 63 3
FIXED DEPOSITE 52 14
NATIONAL SAVING CERTIFICATE 29 37
PUBLIC PROVIDENT FUND 38 28
MUTUAL FUND 37 29
BONDS 33 33
INSURANCE 48 18
SHARES 36 30

Figure 3.6
Financial products known by respondents

Knowledge about financial products

70
63
60
52
48
50

37 38 37 36
40
33 33
29 28 29 30
30
18
20 14

10
3
0
SAVING BANK FD NATIONAL PUBLIC MUTUAL BONDS INSURANCE SHARES
SAVING PROVIDENT FUND
CERTIFICATE FUND

YES NO

Interpretation:
Above table and figure depicts that majority of the respondents have knowledge about products
like SB A/C, FD, insurance, mutual funds but respondents are not very responsive for products
like national saving certificates, shares, bonds.
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Table 3.7
Decision for day-to-day financial matter
No of Percentage
Particulars respondents %
YOU 13 20%
YOUR PARENTS 47 71%
OTHER FAMILY 6%
MEMBERS 4
SOMEONE ELSE 0 0%
DON’T KNOW 2 3%

Figure 3.7
Decision for day-to-day financial matter

Maintainance of accounts

DON’T KNOW 2

SOMEONE ELSE 0

OTHER FAMILY MEMBERS 4

YOUR PARENTS 47

YOU 13

0 5 10 15 20 25 30 35 40 45 50

Interpretation:
In the above table we can see that for majority of the respondent day to day financial decisions
were taken by their family. For 47 respondents decision were taken by family, 13 respondents take
decision regarding financial matters, 4 respondent say other member of the family take decisions
for them and 2 respondent tick on don’t know option.
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Table 3.8
Ability to manage own finance
Options Responses Percentage %
Not sure at all 13 20%
Not too sure 22 33%
Somewhat sure 17 26%
Very sure 11 17%
Can’t say 3 4%

Figure 3.8
Ability to manage own finance

Ability to manage finance

CANT SAY, 3, NOT SURE AT
VERY SURE, 11, ALL, 13, 20%
4%
17%

SOMEWHAT
SURE, 17, 26% NOT TOO SURE,
22, 33%

Interpretation:
Above table and figure depicts that most of the respondents were not sure to manage their own
finance. 13 (20%) respondent select not sure at all, 22 (33%) respondents select not too sure, 17
(36%) select don’t know, 11 (17%) were very sure and 3 (4%) can’t say about their status
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Table 3.9
Money received for Personal spending
>1000 3
1000- LESS THAN
3000 23
3000- LESS THAN
5000 29
5000- LESS THAN
10000 4
MORE THAN 10000 4

Figure 3.9
Money received for Personal spending

Money received

6% 5%
6%

>1000
1000- LESS THAN 3000
37%
3000- LESS THAN 5000
5000- LESS THAN 10000
MORE THAN 10000
46%

Interpretation:
5% of sample received less than 1000 every month for spending,
37% respondents received more than Rs.1000 but less than Rs. 3000
46% respondents received more than Rs.3000 but less than Rs. 5000
6% respondents received more than Rs.5000 but less than Rs. 10000
6% respondents received more than Rs.10000 every month for their expenses.
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Table 3.10
Pocket money cover the monthly expenses or not
YES NO
Does your Pocket money covers monthly
expenses 38 28

Figure 3.10
Pocket money cover the monthly expenses or not

Pocket money covers monthly expenses

28, 42%
YES
NO
38, 58%

Interpretation:
42% respondents says that their pocket money is not enough to cover their monthly expenses.
58 % respondents says that their money covers their monthly expenses.
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Table 3.11
Preparation of budget for spending
YES NO
DO YOU PREPARE BUDGET 27 39

Figure 3.11
Preparation of budget for spending

Preparation of budget for spending

YES
41%

NO
59%

Interpretation:
41% respondents says that they prepare budget for their spending but 59% of the respondents
were not maintain budget for their spending.
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Table 3.12
Maintenance of record of incomes and expenditures
No of Percentage
Options respondents %
maintain no record 29 44%
maintain minimal record 24 36%
maintain very detail record 13 20%

Figure 3.12
Maintenance of record of incomes and expenditures

record of incomes and expenditures

20%

44% maintain no record

maintain minimal record
maintain very detail record

36%

Interpretation:
Out of 66 respondents only 20% of respondents are maintaining detail records of their expenditure,
36% respondent maintain minimal record and 44% are not maintain records at all.
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Table 3.13
Saving habits

SINO OPTIONS PERCENTAGE

(%)
1 Save Cash At Home Or In Wallet 27
2 Saving Money In Bank Accounts 20
3 Giving Money To Family To Save 14
4 Saving In Any Other Way 6
5 Buying Financial Products 1
6 Not Saving At All 23
7 Saving Money In More Than One Option Mention Above 9

Figure 3.13
Saving habits

Saving habits
30% 27%
25% 23%
20%
20%
14%
15%
9%
10%
6%
5%
1%
0%
Save cash at Saving money Giving money Saving in any Buying Not saving at Saving money
home or in in bank to family to other way financial all in more than
wallet accounts save products one option
mention
above

Interpretation:
It is clear from the above analysis that majority (27%) of the students like to save cash in home/wallet and
20% respondents prefers to savings bank accounts. 23% respondents were not saving at all.
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Table 3.14
Make-Up the Expenses
No of
respondents Percentage %
Borrow from friend 14 21%
Using your savings 10 15%
Ask parents for extra money 23 35%
Manage on your own by spending less 12 18%
Do part time job 4 6%
Choose more than one option 3 5%

Table 3.14
Make-Up the Expenses

M a ke u p e x p e n s e s
40%
35%
35%

30%

25%
21%
20% 18%
15%
15%

10%
6% 5%
5%

0%
Borrow from Using your Ask parents for Manage on your Do part time job Choose more
friend savings extra money own by spending than one option
less

Interpretation:
In short of money students normally ask from their parents i.e. 35% of the analysis and 21% says that they
borrow from their friends, 15% respondents uses their own savings ,18% of them spends less and 6% of
them do part time job to cover extra expenses.
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Table 3.15
Surplus of cash
No of Percentage
Options respondents %
keep it for entertainment purpose 16 24%
keep it in cash 32 48%
deposited it in bank 13 20%
invest in stock 5 8%

Figure 3.15
Surplus of cash
Ways to utilize extra money
60%

50% 48%

40%

30%
24%
20%
20%

10% 8%

0%
Keep it for Keep cash in hand Deposite it in bank Make investment
entertainment purpose

Interpretation:
In case of excess of money, majority of the students like to keep the extra cash in hand. 24% respondents
use it for entertainment purpose. 20% respondents keep the extra money in bank and only 8% prefers to
make investment.
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Table 3.16
Income Slabs
less than 10000 7
more than 10000- less than 30000 31
more than 30000- less than 50000 17
more than 50000 11

Figure 3.16
Income Slabs
Total income of family
35
31
30

25

20 17
15
11
10 7
5

0
less than 10000 more than 10000- less than more than 30000- less than more than 50000
3000 50000

Interpretation:
Family income slab of 31 respondents are between RS10000-30000, 17 respondents are between
Rs30000-50000, 11 respondents are more than RS50000 and of 7 respondents income slab is less than
RS10000.
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Table 3.17
Existing Product of Family
Product hold by family Yes Percentage %
SAVINGS BANK ACCOUNT 58 88
FIXED DEPOSIT 32 48
NATIONAL SAVINGS CERTIFICATE 12 18
PUBLIC PROVIDENT FUND 14 21
MUTUAL FUND 15 23
BONDS 9 14
INSURANCE 25 38
SHARES 6 9
ANY OTHER 10 15
TOTAL 66 100

Figure 3.17
Existing Product of Family

Products of family
70 60
58 57 56
60 54 52 51
50 41
40 32 34
30 25
20 12 14 15
8 9 10
10 6
0
SAVINGS FIXED NSC PPF MUTUAL BONDS INSURANCE SHARES OTHERS
BANK DEPOSIT FUND
ACCOUNT
yes no

Interpretation:
88% respondents are have a savings bank account, 18% have a NSC, 21% have PPF account, 23% have
Mutual Funds, 14% invested in bond, 38% hold insurance, 9% in share, 15% have other financial products
hold by their families.
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Table 3.18
Financial Decision
No of Percentage
Options respondents %
yes 32 48%
no 34 52%

Figure 3.18
Financial Decision

Comfort in making decision

yes
no 48%
52%

Interpretation:
48% are comfortable in making financial decision while 52% are not in making it so.
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Table 3.19
Increase Financial Knowledge
No of Percentage
Options respondents %
Not interested 12 18%
Somewhat uninterested 16 24%
Not sure 10 15%
Somewhat interested 17 26%
Very much Interested 11 17%

Figure 3.19
Increase Financial Knowledge

Increase Financial Knowledge

11, 17% 12, 18%

17, 26% 16, 24%

10, 15%

not interested somewhat uninterested not sure

somewhat interested very much interested

Interpretation:
Out of 66 respondents 17% respondents were very much interested to learn about the financial concepts,
26% were somewhat interested, 15% were not sure, 24% were not interested and 18% were not at all
interested to learn.
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Table 3.20
Way to Increase Knowledge
No of Percentage
Options respondents %
Taking a special course for finance 16 24%
Taking help of digital mediums 20 30%
Consult with experts 14 21%
Attend seminars 7 11%
More than one potion 9 14%

Figure 3.20
Way to Increase Knowledge

Options to increase financial knowledge

35%
30%
30%

24%
25%
21%
20%

14%
15%
11%
10%

5%

0%
Taking a special Taking help of digital Consult with experts Attenend seminers More than one
course for finance mediums potion

Interpretation:
Out of 66 respondents 30% respondents will take the help of digital media while 21% will consult with
experts, 24% and 11% respondents have opted for financial courses and seminars respectively.
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CHAPTER IV
FINDINGS

Findings from the first objective:

1. Majority of the respondents are comfortable to read, analyze and communicate financial matters.
Since 23% were strongly agree with the statement that they are able to read analyses, manage and
communicate financial matters 38% Were agreed with it and only 7% is disagree with this.
2. 45% of the respondents knows the basic concepts of money management.
3. Majority of the respondents knows the basic financial terms and concept and understand the
difference between saving and investment.
4. Regarding the knowledge related to money management most of the responses were negative.
Since, 27% disagree that they have knowledge about all the financial products available in the
market, 26% disagrees that they know about the financial awareness program to improve financial
knowledge, 21% disagrees that they know how to make financial plans for future
Findings from the second objective:
5. Out of the total sample of 66 respondents only 17% respondents were able to deal with financial
matters have confidence to manage their own finance.
6. 42% respondents says that their pocket money is not enough to cover their monthly expenses. 58
% respondents says that their money covers their monthly expenses
7. 41% respondents prepare budget for their spending but 59% of the respondents were not maintain
budget for their spending.
8. Out of 66 respondents only 20% of respondents are maintaining detail records of their expenditure,
36% respondent maintain minimal record and 44% are not maintain records at all.
9. In case of excess of money, majority of the students (48%) like to keep the extra cash in hand. 24%
respondents’ use it for entertainment purpose. 20% respondents keep the extra money in bank and
only 8% prefers to make investment.

10. In case of shortage of money majority of the students (35%) ask their parents for extra money.
11. 87% of the respondent’s family hold savings bank account, 48% invest in fixed deposit, 53% invest
in insurance policy while most of the other financial product are ignored
12. 52% of the respondent were not comfortable/ cannot take financial decision.
13. Majority of the respondents prefers to take special course in finance and also prefers digital
mediums to increase their financial knowledge.
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CHAPTER V
RECOMMENDATION AND CONCLUSION

5.1 Recommendations

• Create awareness among students about the financial products in the market and also the financial
schemes provided by the government.
• University can organizing seminars, investors meet on the different financial products and services.
• Introduce special financial course or programme to generate interest and impart knowledge on the
need and importance of financial products and services among students.
• Courses in managing personal finances can be offered to students in campus. These courses should
provide practical experience, promoting involvement as well as transfer of knowledge and financial
management skills to students.
• Websites can be launched which offer free independent financial information to youth. These
websites must be committed to educate the public on a wide range of financial topics. No jargon.
No selling. Just the facts.
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5.2 Conclusion
The purpose of the study is to assess the level of awareness of financial literacy among
university students. The results of the study indicate that those students, on overall, don’t have a
satisfactory level of knowledge and skills in financial literacy. As majority of the students were
disagree with the fact that they have knowledge regarding how to manage their money in day-to-
day life. For the measures and ways as to improve financial literacy, students have a good
perception of the ways. In addition, the results of the analysis suggest that the students do prefers
special financial courses and digital mediums as an effective way to improve financial literacy.
They do believe that financial awareness programs in college and university curriculum will be a
good and effective initiative to improve financial literacy.

Higher education is viewed by the public as an environment that prepares students to be

fully functioning and productive members of society. The public expects university graduates to
develop maturity, organizational skills, self-direction, self-discipline, critical thinking skills,
problem solving skills and the ability to manage on their own. These expectations transcend a
student’s academic life and incorporate their personal and financial lives. As a nation, if we do not
prepare our most educated members to fully participate in society then the nation becomes a part
of the problem.
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References:
1. http://journal-archieves33.webs.com/279-299.pdf
2. http://www.journal.mufad.org/attachments/article/767/11.pdf
3. http://www.futurpreneur.ca/en/2013/meaning-financial-literacy/
4. http://tmgt.lsrj.in/SeminarPdf/148.pdf
5. Australian Government’s report on Financial Literacy among Marginalised Women

6. IIM A report on A Survey of financial literacy among Students, Young employees and the
retired in India.
7. Kenichiro Chinen, Hideki Endo (2012). Effects of Attitude and Background on Students’
Personal Financial Ability: A United States Survey. International Journal of Management,
29(2), 778-793