“SPENDING AND SAVING HABITS OF COLLEGE

STUDENTS WITH SPECIAL REFERENCE TO CHRIST

COLLEGE IRINJALAKUDA”

Project Report submitted to

CHRIST COLLEGE (AUTONOMOUS) IRINJALAKUDA

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by

ANET SAVIO
(CCASBCM013)

Under the supervision of

Prof. RENSON JOHN

DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE
CERTIFICATE

This is to certify that the project report entitled “SPENDING AND SAVING
HABITS OF COLLEGE STUDENTS WITH SPECIAL REFERENCE TO
CHRIST COLLEGE IRINJALAKUDA” is a bonafide record of project done
by ANET SAVIO, REG NO. CCASBCM013, under my guidance and
supervision in partial fulfillment of the requirement for the award of the degree
of BACHELOR OF COMMERCE and it has not previously formed the basis
for any Degree, Diploma and Associateship or Fellowship.

Prof. Dr. Josheena Jose Prof. Renson John

Co-Ordinator Project Guide
 DECLARATION

I, ANET SAVIO, hereby declare that the project work entitled

“SPENDING AND SAVING HABITS OF COLLEGE STUDENTS WITH
SPECIAL REFERENCE TO CHRIST COLLEGE IRINJALAKUDA” is a
record of independent and bonafide project work carried out by me under the
supervision and guidance of Prof. Renson John, Assistant Professor, Department
of Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda ANET SAVIO

Date: CCASBCM013
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people
who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev. Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. Dr. Josheena Jose, Co-Ordinator of B. Com (Finance), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Mr. Jebin Davis, Class teacher for his cordial support, valuable
information and guidance, which helped me in completing this task through
various stages.

I express my sincere gratitude to Prof. Renson John, Assistant Professor, whose

guidance and support throughout the training period helped me to complete this
work successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college
for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-4

CHAPTER 2 REVIEW OF LITERATURE 5-18

THEORATICAL
CHAPTER 3 19-27
FRAMEWORK

DATA ANALYSIS AND

CHAPTER 4 28-47
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 48-50
& CONCLUSION

BIBLOGRAPHY

ANNEXURE
 LIST OF TABLES

SL. No TITLE Page No.

4.1 Table showing family income of students. 29

4.2 Table showing whether students having income. 30

4.3 Table showing various sources of income of students. 31

4.4 Table showing amount of money received per month. 32

4.5 Table showing monthly spending of students. 33

4.6 Table showing frequency of shopping of students. 34

4.7 Table showing trend of students spending. 35

4.8 Table showing students attractiveness towards the 36

advertisement to buy products.

4.9 Table showing students ranking towards the avenues 37

of spending.

4.10 Table showing factors affecting spending behavior of 38

students.

4.11 Table showing whether students have saving habit. 39

4.12 Table showing how long have been they started 40

saving.

4.13 Table showing the people who encouraged students to 41

have the saving habits.

4.14 Table showing amount of savings per month. 42

4.15 Table showing the purpose of savings. 43

4.16 Table showing spending and saving habits of students. 44

4.17 Table showing the various saving avenues of students. 45

4.18 Table showing factors influencing the saving habit of 46
students.

4.19 Table showing satisfaction of students towards their 47

saving habits.
 LIST OF CHARTS

SL. No TITLE Page No.

4.1 Chart showing family income of students. 29

4.2 Chart showing whether students having income. 30

4.3 Chart showing various sources of income of students. 31

4.4 Chart showing amount of money received per month. 32

4.5 Chart showing monthly spending of students. 33

4.6 Chart showing frequency of shopping of students. 34

4.7 Chart showing trend of students spending. 35

4.8 Chart showing students attractiveness towards the 36

advertisement to buy products.

4.9 Chart showing students ranking towards the avenues 37

of spending.

4.10 Chart showing factors affecting spending behavior of 38

students.

4.11 Chart showing whether students have saving habit. 39

4.12 Chart showing how long have been they started 40

saving.

4.13 Chart showing the people who encouraged students to 41

have the saving habits.

4.14 Chart showing amount of savings per month. 42

4.15 Chart showing the purpose of savings. 43

4.16 Chart showing spending and saving habits of 44

students.

4.17 Chart showing the various saving avenues of students. 45

4.18 Chart showing factors influencing the saving habit of 46
students.

4.19 Chart showing satisfaction of students towards their 47

saving habits.
 CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION

Saving and spending are two sides of a particular coin. Both savings and
spending’s are interrelated. Human wants are unlimited. When one want is fulfilled,
then another want is raised. In early years people spent more on unnecessary items than
the necessary items.

The transaction from childhood to adulthood can be a tough time for young
people. Young people face the challenges and up the level of leaving their parental
home moving in to the world of work and beginning to build a family. But for the young
people today the challenge for them is even more difficult because they must do all of
these in the midst of a struggling economy. The increased pocket allowances and
employment opportunities to earn and spend make the youth of this country as one of
the most important forces in spending. The spending and saving habits of this youngster
not only indicate the economic and life style trends but also larger social trends of the
country.

Two basic characteristics associated with the shopping behavior of the young
generation is its preference for shopping online and increasing brand consciousness.
With information just a click away, youngsters spend a considerable time comparing
various products.

The youth referred to here are college students in under-graduation and post-
graduation. The age group of 15-25 years is the part of society which is immortalized
in advertisements despite they are financially dependent on 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. The study has been undertaken to analyze the spending and saving habit
of college students especially in Irinjalakuda. The main reason behind the study is the
youth spend more than their income and saving habit is declining. This study also
identifies various factors which influence the spending and savings of students.

1.2 STATEMENT OF THE PROBLEM

The spending and saving habits of the youth have changed over the years. Youth has
started to spend more money on entertainment and life style and has become more brand

1
conscious. With the increase in standard of living of adults, the young have also been
empowered with more money and have got more spending power. The spending and
saving habit of college student is a relevant topic in this current scenario because the
income of the students is very low and expenses are very high. It is important to study
that how will they manage their expenses with their limited income. This study is
conducted to understand the various spending patterns of college students.

1.3 OBJECTIVES OF THE STUDY

Main objective of the study is to analyze the spending and saving habits of the college
students with special reference to Colleges in Irinjalakuda.

The specific objectives are;

• To analyze methods of saving and spending among youth.

• To analyze the influential factors of saving and spending pattern of youth.
• To analyze the relationship between satisfaction level of spending and saving.

1.4 SCOPE OF THE STUDY

The scope of the study is limited to the college students of Irinjalakuda. Both
undergraduates and post graduates are considered for the survey. The purpose of the
study is to know the attitude of college students towards saving and spending. This
comprehensive study will benefit a large spectrum of retailers, entertainers,
educationalist employer, academicians and researchers in understanding the behavior
of the students towards saving and spending.

1.5 RESEARCH METHODOLOGY

1.5.1 Research Design

Descriptive research design is followed for conducting the study.

1.5.2 Source of data

Both primary and secondary data sources have been used for the study.

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1.5.2.1 Primary Data

Primary data has been collected using questionnaire.

1.5.2.2 Secondary Data

Secondary data has been collected from books, journals, reports, thesis,
websites, etc.

1.5.3 Population of the study

This study is conducted among the students of Christ College Irinjalakuda.

1.5.4 Sampling Design

The method of sampling design is convenient sampling.

Sample size is 100.

1.5.5 Tools of data collection

Questionnaire is used for data collection.

1.5.6 Statistical tools used

Simple percentage analysis is used for data analysis.

1.6 LIMITATIONS OF THE STUDY

• The study is confined to the view point of students in Christ College Irinjalakuda.
The result of the study may not be applicable to other places.
• An interpretation of the study is based on the assumption that the respondent has
given the correct information.
• Besides, the study has the limitation of time, place and resources.

1.7 CHAPTERISATION

Chapter 1: Introduction – This chapter includes introduction, statement of problem,

objectives of the study, research design, research methodology and limitation of the
study.

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Chapter 2: Review of literature – This chapter focuses on the empirical review of
literature.

Chapter 3: Theoretical framework – This chapter includes the conceptual theoretical

framework

Chapter 4: This chapter includes the analysis and interpretation of data.

Chapter 5: This chapter includes the finding, suggestions and conclusions of the data.

4
 CHAPTER 2
REVIEW OF LITERATURE

5
2.1 LITERATURE REVIEW

A literature review is a text written by some to consider the critical points of current
knowledge including substantive findings as well as theoretical and methodological
contributions to a particular topic. Due to this, this chapter is meant to contain the
review of various literatures considered to be the study.

1. Furnhum (1999) collected data over 250 “British Children and Adolescence on
their source of income, amount saved by them, their purpose of saving”. Young
people are found to be economically active citizen. Most of the young people were
found to borrow, send and save money. The data showed that male receive more
pocket money than females. Sex difference indicates that females are economically
less active and more economically conservative as compared to males.

2. Abhijeet Birari, Umesh Patil (2014) in their study “Spending and saving habits of
youth in the city of Aurangabad”, they say that youth spends more money on
shopping and specially on branded items. It was also noted that both male and
female youths have different spending pattern with a slight similarity.

3. Folorunsho M Ajide (2015) in his study “The spending pattern among the youth
in Lagos, Nigeria”, showed that there was a significant difference in the spending
pattern among the male and female youth and the major source of their income was
pocket money. It was concluded that youth spend most of their income towards fast
food, movies, transportation.

4. Mebin John Mhews (2017) in his study on “Spending and saving pattern of college
students in Idukki district”, clearly shows that only few students are interested to
earn while learning to meet their own expenses and others are expecting from
parents for their personal expenses.

5. Kanting Sechaba Thobejane, Olewale Fatoki (2017), in their study “Budgeting

and spending habits of university students in South Africa”, states that the majority
of the university students do not have a written budget. In addition, majority of the

6
 students spend on groceries and fast food. Female students are more likely than
male students to have a budget.

6. Asta Zokaityte (2017) in her book “Financial Literacy Education; Edu-regulating

our saving and spending habits” explores the issue of consumer financial education,
responding to increased interest in, and calls to improve people’s financial literacy
skills and abilities to understand and manage their money. It reveals how these
international and national calls for ever greater financial education over simplify
and underestimate the complexity of consumer financial decision making in our
modern times.

7. Celia Ray Hayhoe, Lauren J Leach (2000) in his study “Differences in spending
habits and credit use of college students”, states that affective credit attitude and
gender influenced college students’ credit purchasing. Females purchased clothing;
Males purchased electronics, entertainment and food away from home. Gender was
more influential in predicting financial management practices than was affective
credit attitude, with female students employing a greater number of financial
practices.

8. P Jeevitha, R Priya (2019) in their survey “A study on saving and spending habits
of College students with reference to Coimbatore city” attempts to examine the
extend of students saving and spending habits. The survey was administered among
200 college students. Each of the survey responses was entered and analyzed using
Chi-Square test.

9. Mary E Pritchard, Barbara Kimes Myrs, Dabora J Cassidy (1989), in their

study “Factors associated with adolescent saving and spending patterns” examined
the saving and spending behaviors of 1619 employed high school seniors from over
1000 private and public schools across the united states. Students were categorized
as savers, necessity spenders and discretionary spenders based on their responses to
the question, “How do you spend the money that you earn?”. Association of student
spending and saving pattern with individual and family factors were analyzed.
Findings were discussed in light of the importance of families as socializing agents
of their children.

7
10. Katelin Carlson (2016) in her study “Saving and spending habits of college
students” looked at the financial behavior of college students and recent alumni as
it relates to economic theory and life cycle hypothesis. With student loans
increasing dramatically and credit card debt becoming more of a reality, it is critical
to understand what drives financial stability or instability after graduation. The pool
of 230 participants was composed of 174 women and 56 men, representative of 8
years of graduating classes, 2009-2016, from Connecticut college.

11. Wilailuk Sereetrakul, Siriwan Wongveeravuti, Tanakorn Likitapiwat (2013),

in their research “General differences in saving and spending behaviors of Thai
students” studied gender differences in saving and spending behaviors of Thai
students. This was an exploratory study where questionnaire was to collect
information from 455 students. The data were analyzed using Fischer exact test and
a T-Test for 2 independent samples. The result showed that female and male
students did not have different saving behavior, although females had a more
positive attitude towards saving and shopping than males. Females were more
concerned about being rich or having a lot of money than males, while males had a
more positive attitude towards spending money than females.

12. Rekha Attri (2013), in her research “Spending and Saving habits of youth in the
city of Indore” addresses the question of why, where and how the youth spend. The
youth referred to here are of the age group 14-30 years. With the rocketing
economy, the buying trends are also changing. The age group of 15-30 years us 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 15-26 years,
there is a radical difference observed in the spending behavior of the youth of the
country.

13. P.P. Ajeesh (2019), in his research “A study on saving and Spending habit of youth
with reference to Thrissur dt.” He compares the spending and saving habit of youth.
Convenience sampling method is used for this study. 100 samples are taken from

8
 Thrissur dt. Ranking method, rating technique and correlation are used for this
study.

14. Bryce L Georgenson, Jyothi Savla (2010), in their article “Financial literacy of
young adults; The importance of parental socialization”, tests a conceptual model
of perceived parental influence on the financial literacy of young adults. Structural
equation modelling was used to test whether (a) Parents were perceived to influence
young adults’ financial knowledge, attitude and behaviors and (b) The degree to
which young adults’ financial attitudes mediated financial knowledge and
perceived parental influence on young adults’ financial behaviors. A sample
consisting of 420 college students participated in the study. Findings indicated that
perceived parental influence had a direct and moderated significant influence on a
financial attitude, did not have an effect on financial knowledge, and had an indirect
and moderately significant influence on financial behavior, mediated trough
financial attitude.

15. Jamal Mohmmed Ismail Alekam (2018). The purpose of the study “The effect of
family, peer, behavior, saving and spending behavior on financial literacy among
young generations” is to assess the height of financial literacy amid the young
generation of Malaysia. It directs to developing a unique representation of financial
literacy among youthful age as assumed family, peer, attitude, saving and spending
behavior significantly influence financial literacy among young generations. A
sample of 500 respondents were selected. About 410 answers from the respondents
were received. The questionnaire consisted of 42 items. The results revealed a
significant positive relationship between behavior and financial literacy.

16. David M Tucker (1991), begins his study by tracing the thrift culture in which
America was born which continued its dominance for more than a century. Tucker
explores the dangers of the thriftless society, comparing America’s current position
to the economic rise and decline of United Kingdom. With a savings rate that has
fallen from 15% to 4%, and a govt. that routinely appropriates more than 100% of
tax revenues, Tucker sees a moral deficiency in Americans. This unique history and
commentary will be a useful supplement to courses in current affairs, American
history and economics to college, university and public libraries.

9
17. Kavitha Chavali (2020), in her study “Saving and spending habits of youth in
Sultanate of Oman” aims to investigate with the saving and spending habits of youth
in Sultanate of Oman. The extend of peer influence, parental influence and financial
literacy on the saving and spending habit of youth in Sultanate of Oman are
investigated. The adopted method for this study is a survey designed based on
collection of data through a structured questionnaire from randomly selected youth.
Descriptive analysis and correlation results revealed that influence of peers and
influence of parents and financial literacy of youth are significantly correlated with
the saving and spending habit of youth.

18. Ambrose Leung, Cheryl Kier (2010), in their study “Music preferences and young
peoples’ attitude towards spending and saving” aimed to find patterns among young
peoples’ music preferences in relation to their attitude towards saving or spending
money. Using data collected from 178 individuals aged 14-24 through self-report
surveys, principal component analysis was used to group music genres that measure
the same underlying preference. Then regression analysis was applied to examine
the relationship between music preferences and attitude towards saving and
spending money. Results revealed that participants who listened to hip hop, rap,
rhythm and blues, dance, house, electronic, industrial, techno and trance reported a
tendency to spend money. Those who favored classical, opera, musicals, big band,
world music, oldies, contemporary rock and alternative music were more likely to
save money.

19. Melissa Cummins, Janaan H Haskell, Susan J Jenkins (2005) in their study
“Financial attitude and spending habits of University freshmen” finds the attitude
towards, and use of, money affects relationships, family stability and even
employment success. This study will evaluate the financial attitudes and
perceptions as well as the spending habits of University freshmen. Implications are
far reaching and will provide valuable data for administers in enrollment
management and student affairs, high school counselors, economic educators and
parents.

20. Renee Edwards, Myria Watkins Allen, Celia Ray Hayhoe (2007) in their study
“Financial attitudes and family communications about students’ finances; The role
of sex differences” has shown that men value money more than women and men is
10
 less dependent on their parents and financial matters. They examined these issues
in the context of young college students communicating with the parents about their
financial situation by conducting a multistate survey(N=1317). Results revealed
women to be more open with their parents about financial matters even after
controlling for financial independence, which also was related to openness.
Financial attitudes were related to openness.

21. Thi H Pham, Keong Yap, Nicki A Dowling (2012) in their study “The impact of
financial management practices and financial attitudes on the relationship between
materialism and compulsive buying” suggest that financial attitudes and financial
management practices would significantly predict compulsive buying severity even
after controlling for materialism. Results partially supported their hypothesis.

22. Kristi Leclerc (2012) in their study “Influential factors contributing to college
students spending habits and card debt” explores how access to credit, familiarity
with debt and financial education, socialization agents and social identities,
academic performance and financial aid and family income influence college
students’ spending and credit card debt. After a close comparison of eleven studies,
he was able to conclude that easy access to credit cards makes students susceptible
to accumulating debt. Students who perform poorly academically, are female
minorities, and who are older tend to be more likely to be in debt than other students.
Family income and the amount of financial aid a student receives also affects their
financial situation, as does the students’ own level of financial education, and
financial socialization from parents.

23. Dahlia Ibrahim, Rabita Harun, Zuraidh Mohammed Isa (2010) in their study
“A study on financial literacy of Malaysian degree students” explores the issue of
personal finance, particularly money management has tremendously increased in
recent years due to the society’s awareness on its importance. From data analysis,
majority of the students do not practice proper money management skills. Hence
researchers hope there will be measures taken to step aside this scenario.

24. Jodi L Parrotta, Phyllis J Johnson (1998) in their study” The impact of financial
attitudes and knowledge on financial management and satisfaction of recently
married individuals” examined the impact of financial attitudes and knowledge on

11
 financial management and satisfaction with financial status in a sample of 194
recently married individuals. Financial knowledge didn’t moderate the relationship
between attitudes and practices. That is, the relationship was not stronger when
financial knowledge was high.

25. Irfan Ersin, Serkan Eti (2017) in their study “Measuring the waste-conscious and
saving habits of the youth in Turkey; The sample of Istanbul Medipol University”,
it was tried to measure the saving habits and waste-conscious of young people in
Turkey. A survey studies on 503 students was examined by factor analysis. As a
result, the increase in the expenditure trends of young people reduces the savings,
and the increase in waste sensitivity increases the savings.

26. Shaliza Alwi, Irma Zura Amir Hashim, Mhammed Sharook Ali (2015) The aim
of the study “Factors affecting saving habits within millennials in Malaysia; Case
study of Taylor’s University” is to investigate the major factors affecting saving
habits within millennials or Gen Y in Malaysia. This study proved that parental
socialization is a major factor influencing money habits spending among
millennials while self-dominance is the weakest factor. The results will propose a
new factor or changes in major factors affecting saving habits within millennials in
Malaysia.

27. Samantha Villanueva (2014) in her research paper “An analysis of factors
affecting the spending and saving habits of college students” analyzes spending and
saving behavior among students of various class years, ethnicities, and gender at
Skidmore College using data collected from an original survey. Results indicate that
whites and Asians spend significantly more than other ethnicities while blacks save
significantly more. Findings also provide support for the permanent income.
Hypothesis, however, no significance was found regarding Hyperbolic
Discounting.

28. Hashim Hasni (2014) in his study “Factors that influence the saving habits among
Gen Y: case study on students of polytechnic Sultan Azlan Shah” is investigating
the significant relationship between factors that influence saving habits among Gen
Y. The objectives of this study are to investigate the saving habits of Gen Y students
and to identify which factors will be most influential among financial literacy,

12
 parental socialization, peer influence and self-control. The results show the parental
socialization played the most significant role in influencing saving habits among
Gen Y and the weakest is self-control.

29. Karan Sabharwal (2016) in his study “Saving habits of graduates” aims to
examine the saving habits of the students and their preferences towards different
saving methods such as teachings at primary school level, setting goal, recurring
accounts, etc. Data has been collected through personal survey. Most of them chose
the reasons for not being able to save are self-control problems, want to live in the
present, etc.

30. Annamaria Horvathne Kokeny, Adam Balint (2013) in their study “Saving
habits of Hungarian college students” analyzes the theoretical background of
savings of young people. The questionnaire has been filled out with 323 Hungarian
college students. It was obvious, that the individuals’ upbringing parental and
educational influences have an outstanding impact on subsequent financial
perspective.

31. Ron Ivan Perdido, Joyce Infante, Wilhelm Fesalbon, Lailanie Tanalas (2016)
in their study “Spending and saving habits of University students” studied the
money management habits that may lead to costly financial mistakes. The
quantitative survey was conducted to determine the spending and saving habits of
randomly selected students from the college of business. Majority of the students
was females. Of the 90 respondents, 76% received an allowance from their parents.

32. Aynur Yumurtaci, Billal Bagis (2020) in their study “University students’
preferences about Savings and Investments at individual and national level in the
21st century: the case of Turkey” aims to capture the favored both national and
individual saving and investment perceptions of the Turkish youth. A questionnaire
was applied to randomly selected 550 students in Turkey. The results were analyzed
be chi-square test. Students have mostly preferred that investments should be
primarily made to the education sector at national level while investment made for
social security system is placed on the last rank. Another important outcome is that
students prefer to invest their individual savings in gold and real estate investments
respectively.

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33. Sulaeman Rahman Nidar, Snadi Bestari (2012) in their study “Personal Financial
literacy among college students (case study at Padjadjaran university students,
Bandung, Indonesia)” , the objective was to obtain a description of the personal
financial literacy of Padjadjaran University students and analyze the factors
influencing it. Questionnaire were used to collect information from 400 active
students of the university. This research shows that level of personal financial
literacy of students of padjadjaran university comes within the low category, and
therefore needs to be improved especially for the areas of: investment, credit and
insurance.

34. Bijou Yang, David Lester (2016) in their study “Validating the executive personal
finance scale (EPFS) with financial investments and expectations in the university
students” the validity of EPFS was tested in a sample of 93-degree students. Scores
on the motivation drive, organization, and planning subscales of this scale were
associated with having a savings account, owning bank CDs, and self-estimated
knowledge about financial matters, while scores on the impulse control and
motivational drive subscales were associated with expectations for a satisfactory
retirement income. The results provide support for the validity of the EPFS.

35. Adele Atkinson, Flore-Anne Messy, Lila Rabinovich, Joanne Yoong (2015) in
their study “Financial education for long term savings and investments” evaluates
various types of financial education aimed at increasing long term savings and
investments. They identified some promising results. Initial findings suggest the
need for additional, targeted evaluation of education programmes to compare the
effects of different delivery channels and the intensity of provision in order to
identify optimal approaches.

36. Maman Setiawan, Nury Effendi, Teguh Santoso, Vera Intanie, Militcvano
Samuel (2020) in their research paper,“Digital financial literacy(DFL), Current
behavior of saving and spending its future foresight” investigates the relationship
among digital financial literacy, current saving behavior, current spending behavior
and foresight of future spending and saving behavior among Indonesian millennials.
This research uses structural equation modeling to estimate the relationship among
the variables. The research surveyed millennials in the 25-40 age group in several

14
 urban areas of Java island. The result indicates the DFL is influenced by social-
economic standing. It positively affects the current saving and spending behavior.
Moreover, the current saving and spending behavior contributes to future saving
and spending foresight.

37. Ekaterina V Galishnikova (2012) in her research paper “Financial Behavior of the
population: saving and spending” says that positive changes in financial behavior
of the population are one of the key objectives of launching the state program of
financial education in Russia. The objective was to identify the factors and motives
that affect selection of the behavior model: savings, credit, investment or insurance.

38. Francesco D’Acunto, Alberto Rossi, Michael Weber in their study

“Crowdsourcing Financial Information to change Spending Behavior” document
five effects of providing individuals with crowdsourced spending information about
their peers through a FinTech app. Discretionary spending drives the reaction in
both directions and especially cash withdrawals, which are commonly used for
incidental expenses and anonymous transactions.

39. Pierre Martineau in his study “Social Glasses and Spending Behavior” describes
that there is a social class system operative in metropolitan markets which can be
isolated and described. The kinds of things a person will or will not buy are strongly
related to his class membership and also whether he is mobile or stable. Likewise,
individuals’ store loyalties and his spend-save aspirations will in considerable part
be class related.

40. Kristina M Durante, Juliano Laran in their study “The effect of stress on saving
and spending” examines how stress influences saving and spending of people. A
series of studies shows that this strategic allocation of resources occurs in two ways.
respondents experiencing stress may show increased saving behavior, which
assures them that monetary resources will be available when needed. Alternatively,
respondents experiencing stress may show increased spending behavior, directed

15
 specifically towards products that the respondent perceives to be necessities and
that allow for control in an otherwise controllable environment.

41. Leora F Klapper, Annmaria Lusardi, Georgios A Panos (2012) in their study
“Financial literacy and the financial crisis” uses a panel dataset from Russia, an
economy in which consumer loan grew at an astounding rate from about US $ 10
billion in 2013 to over US $ 170 billion in 2008-to examine the importance of
financial literacy and its effects on behavior. Financial literacy is positively related
to participation in financial markets and negatively related to the use of informal
sources of borrowing. The relationship between financial literacy and availability
of unspent income is higher during the financial crisis, suggesting that financial
literacy may better equip individuals to deal with macroeconomic shocks.

42. Stewart Cohen (1994) in his book “For parents: Children’s’ saving and spending
behavior” shows how to use popular children’s tales like “stone soup” or “caps for
sale” to help students grasp saving and spending concepts and factors affecting
saving and spending behaviors.

43. Vladas Griskevicius, Joshua M Tybur, Joshua M Ackerman, Theresa E (2012)

in their study “The financial consequences of too many men: sex ratio effects on
saving, borrowing and spending” shows the ratio of males to females in a population
is an important factor in determining behavior of spending and saving. Using both
historical data and experiment they examined how sex ratio influences saving,
borrowing and spending in US. Findings show that male-based sex ratios lead men
to discount the future and desire immediate rewards. Male biased sex ratios
decreased men’s desire to save for the future and increased their willingness to incur
debt for immediate expenditure. These findings demonstrate experimentally that
sex ratio influences human decision making in ways consistent with evolutionary
biological theory.

44. JTC Bona (2018) The purpose of the study “Factors affecting spending behavior
of college students” was to look at the factors affecting the spending behavior
16
 among college students of Surigao del Sur State University in Cantilan, the
northmost municipality in the province of Surigao del Sur, Philippines in terms of
attitude, family background, lifestyle, and financial knowledge. After having
studied the data, the researcher concluded that college students’ spending behavior
are greatly influenced by their family background.

45. Sorooshian Shahryar, Seng Teck Tan (2014) in their study “spending behavior
of a case of Asian University students” explores the professional financial issues
mainly money management due to societal awareness of its benefits. Stratified
random sampling was used to examine the spending patterns of student population
at one of Malaysia universities. This study emphasizes the need on financial literacy
awareness among the students looking into their background, financial awareness,
attitude and family. Data analysis show that majority of the students do not put to
practice correct skill in money management.

46. Debra Street, Jeralynn Sitting Cossman (2006) in their study “Greatest
Generation or greedy geezers? Social spending preferences and the elderly” use
data from the general source survey to examine whether the preferences for
increased education, health and social security spending expressed by citizens of
various age groups are consistent with age-based self-interest. Their findings
indicate the arguments for generational spending preferences based exclusively on
age are overly simplistic. They find a little empirical support for the negative
connotations of the generational equity as it applies to support for US social
spending.

47. Amirtha Sangeetha Ganesan (2012) in her study “consumption, spending and
investment behavior of Malaysia generation Y” adopts quantitative approach where
data for this study has been conducted by survey method targeted to Malaysian
generation y those age between 19-32. A total of 592 questionnaires were collected
both manually and online survey form responded in 11 capital cities of peninsular
Malaysia. The findings from this study show that the prefer method of
communication between with Malaysian generation y and financial institutions are

17
 through online medium that is through email and online social media
communication.

48. Danny Firmansyah (2014) in his research “The influence of family backgrounds
toward student saving behavior: a survey of college students in Jabodetabek”
examined the influence of family’s background towards students saving behavior.
Using quantitative data analysis, 300 questionnaires are spread to Jabodetabek area
to obtain information about their saving behavior.
49. Mohamed Fazil Sabri, Maurice MacDonald in their research “Savings behavior
and financial problems among college students: The role of financial literacy in
Malaysia” analyzes the relationship of savings behavior and financial problems to
financial literacy among college students in Malaysia. Multivariate analysis of a
sample obtained at 11 colleges and universities demonstrated that students had
higher financial knowledge test scores were more likely to report savings behavior
and also reported fewer financial problems.

50. Herb Goldberg, Robert T Lewis in their book “Money madness: The psychology
of saving, spending, loving and hating money” unravel the psychological threads
that entangle most of us in one form or another of the money madness. They
examine the psychology of money behavior and explore the self-destructive
patterns, magical notions and unrealistic fantasies that surround and generate
peoples’ money attitudes.

18
 CHAPTER 3
THEORETICAL FRAMEWORK

19
Definition of Saving and Spending

According to Jim Chppelow,” Consumer spending is the total money spent on

final goods and services by individuals and households for personal use and enjoyment
in an economy. Contemporary measures of consumer spending include all private
purchases of durable goods, non-durable goods and services. Consumer spending can
be regarded as complementary to personal saving, investment, spending and production
in an economy.”

According to The Editors of Encyclopedia Britannica, “saving, process of

setting aside a portion of current income for future use, or the flow of resources
accumulated in this way over a period of time. Saving may take a form of increases in
bank deposits, purchases of securities or increased cash holdings. The extent to which
individuals save is affected by their preferences for future over present consumption,
their expectations of future income and to some extent by rate of interest.”

Why Saving:

Saving of money is essential for future financial well-being of an individual.

Factors such as high standard of living, change in attitudes, inflation etc. involve money
spending thus making it uphill battle to strike a balance between spending and saving.
Therefore, it becomes important to make a monthly habit to put aside a little money to
ensure future financial stability at an early stage itself.

Despite perceptible benefits in saving, lack of discipline in saving is commonly

observed across people of all age groups. The savings habit of people should be
developed at an early stage of life to ensure continuity and long-term benefits. Young
generation should be encouraged to save and invest to achieve for that purpose. Savings
not only help individuals but also the country as it leads to economic development.

Factors influencing the Saving and Spending habit

1. Taste of individual
2. Family background

20
 3. Amount of income
4. Level of social life they engage in
5. How they are brought up
6. Educational environment
7. Stress levels
8. Emergency situations

Importance of Saving

Save for better education

A good education is an important investment for a better future. Each year, many
graduates are passing out from many institutions to earn their masters or doctorate
degrees. If you have goals of reaching some colleges or universities, you will definitely
need huge fund. So, start saving today for your dream.

Helps in emergency

Our future is full of uncertainties. You never know which unexpected and emergency
expenditure will come knocking at your door. An accident, sudden hospitalization, job
loss, broken roof etc. are the emergency situations.

Helps to finance vacations

Many students like to go on a trip at least once in a year. However, for many students
it is not possible because of lack of fund. It is better to use our savings rather than debt
to go on a trip.

Helps for shopping

Shopping is an emotional relief for many young people. Youngsters now a days save
money to buy things they crave for. By better saving plans they can shop without
depending their parents.

21
Different perceptions exist of being rich and wealthy. For many, it is having financial
independence with saving to depend on. So, whatever the life goals, having right
amount of saving at right time gives financial freedom. Saving money helps in growing
more wealth, faster. The rich have cultivated habits of curtailing expenditures and
saving to grow wealth.

By saving, individuals would have more money every year that can be useful in
emergencies. A saving habit provides plenty of choices that give peace of mind by
reducing stress related to financial instability. By investing prudently, one can enjoy
better returns.

Youth who save and invest even small amount of money and monitor spending do better
in life than who doesn’t. They will be better prepared to meet life changes and handle
emergencies.

Saving money have major effect in quality of life. With high income and low spending,
sound saving and investment strategy can enable one to retire early without
compromising quality of life. Therefore, to retire early in life, one needs to save early.

When small time saving fund is transferred to medium term savings, it grows through
the power of compounding. Regular additions allow further growth as the interest rates
are usually lower than other forms of investment. This also benefits banks as they find
them cheaper at 4% to 6% and can lend them at competitive rates.

Youth save for a dream vacation or down payment for home. Ability to afford large
purchases requires significantly saved funds. Therefore, good saving habits is a good
start to pay off for future goals.

Advantages of Savings

• Money saved is money earned. If you have it you can spend it anytime later. As
long as you have it you have the power.
• Money saved can also be increased by investing it wisely. However, if you don’t
have enough, you can’t invest it.
• Saved money keeps increasing, which can be spent on illness, marriage or
education. However, if you don’t have it, you have to take loans.
• If you have enough money, you can help your relative or friend in need.

22
• If you have enough money, people respect you and hold you in high esteem.

Disadvantages of Savings

• If you spend extravagantly, you don’t have enough of it. And during the need you
will feel helpless.
• If you spend extravagantly, you don’t have enough money and you have to borrow
money on high rate of interest. While paying off you have to spend extra money.
• If you spend extravagantly, you will never have enough money for illness, marriage
function, making a nice house, or buying a nice vehicle.
• In the absence of money, people won’t respect you. You will always live fear and
stress of shortage of money.
• If you spend extravagantly, you will never have money to invest and you will
always remain short of funds.

Avenues of Savings

1. Post Office
Post office saving scheme provides a safe risk free and attractive savings for small
investors. Since post offices are spread all over the country, post office savings are ideal
saving avenues, particularly to small investors with limited income.

2. Savings Bank a/c

In the case of saving deposits, customers can deposit any amount of money at any
number of times. Cheque facility is provided to the saving depositors.

3. Chittis and Kuries

A chit fund is a kind of savings scheme practiced in India. A chit fund company is a
company that manages, conducts, or supervises a chit scheme.

23
4. Recurring Deposits
In the case of recurring deposits, a fixed sum of money is invested every month for a
predetermined period. The rate of interest on these deposits is almost the same as that
of FD.

5. Time Deposit
In this case, money is deposited for a fixed period of time and can be withdrawn only
after the expiry of the period. The rate of interest on this type of deposit is higher than
as compared to other type of deposits.

Spending habits among youth

Monitoring of spending habits enables to improve saving habits among youth.

Today’s youth spend on different elements like food, personal care, education,
entertainment, transport, cell phones, cloths and accessories etc.

• Spending on Food
With change in lifestyle, increased outdoor life during study and work, they spend
considerably on outside food. Food outlets like McDonalds, Pizza Hut, Dominos, Café
Coffee Day attract the youth. Selling food at higher cost than local Vada Pav,
sandwiches or canteen food, youth eat at such food chains purely as a status symbol.

• Personal Care
Personal care includes all such expenses incurred on personal hygiene and medical
costs. It includes money spent on tooth paste, shampoo, beauty treatments, make up
kits, hair care services, expensive perfumes, cosmetics and so on. Branded products and
services are generally sold at a premium.

• Education
Education expenses include college fees, coaching classes fees, text book,
stationaries, photo copies of notes, college project work, presentations and other related
expenses. Now a day’s parents spend a big part of income to provide quality education
to their children with an aim to seek a good career. Cost of education in India has
increased manifold. Consequently, families from lower income group also tend to save
for their kid’s education. A survey determined the spending patterns of youth on
Education.
24
• Entertainment
Changes in lifestyle and attitudes created a demand for entertainment among
modern youth. Today’s youth enjoy spending money on sports, physical fitness, video
gaming, internet, discotheques, watching movies with friends, socializing and so on.

• Transport
In urban India, transport plays a tremendous role in mobility and accessibility.
Despite an overly stressed public transportation system, Mumbai’s transport system
connects to all corners of the city through its dense network of buses and metros. Youth
can therefore travel far to access good colleges in the city. The public transport cost is
relatively cheap through slightly more expensive autos and taxies also flourish. The
cost depends on the distance covered.

• Social Participation
Accompanying social lifestyles, spending pattern is also affected by celebrations on
birthdays and partying, a trend which has been growing lately. Therefore, contributing
towards gift, cakes and parties is common.

• To support family
Spending disposable personal income to support family shows sense of
responsibility and care for the family. These include financial support to members in
the family as well as general household expenditures.

• Mobile phones
Though technological innovation in the communication industry, especially in
mobile smartphone has made life easier, the youth has got emotionally attached to them.
Time is being wasted on Twitter, Facebook, Whatsapp, Social networking and long
conversation with friends.

• Clothes/Shoes
Youth are also technology savvy to shop online on the likes of Amazon and
Flipkart that offer wide range of products with easy and convenient payment
options. Moreover, Goods can be returned subject to certain conditions. All these
features attract more young consumers who tend to spend more clothes or branded
shoes.

25
• Charity
Spending for good causes brings meaning to life. One can experience pleasures
by helping others. The question is whether youth are sensitized towards the needs of
the society. At such young age, are they spending on charity? Therefore, efforts needed
to be taken by parents, schools and colleges to inculcate value system among today’s
youth as they are pillars of the nation.

Saving habit and Banking Habit

To understand the importance of saving, youth should start saving, considering their
life styles. To seek financial freedom, it starts by compelling youth to save money. The
main reason for not saving money is a combination of excessive spending and lack of
banking.

Saving is achieved by good banking habit. Opening a bank saving account can be
the first step. If the money is deposited in a high interest earning account, it will attract
the youth. If the money is deposited for longer term, it would grow further. Banks
generally pay compounded interest, depending on the account- daily, monthly or
quarterly.

For salaried people, pay cheques can be directly deposited into saving account or
through automatic transfers. Carrying less cash would automatically curtail unwanted
spending. Due to automation technology, accounts are opened online, balances
checked, utility bills paid and shopping done using ATM, debit cards and credit cards.
Also, investments in mutual funds and other financial instruments are carried out
online. Prevention of late fees, extra fines or charges saves money.

Awareness of banking among Youth

Banking habit depends on awareness, knowledge and usage of banking

transaction and services. The knowledge of basics of banking is needed to orient the
youth about banking operations.

26
Types of Deposit accounts in India

• Current Account
• Savings Bank Account
• Recurring Deposit Account
• Fixed Deposit Account

Access to Banking Services through various channels:

• Unit Banking
• Branch Banking
• Online Banking
• Mobile Banking
• Use of Plastic Money
• ATM
• Debit Card
• Credit Card
• Demand Draft

27
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

28
 Table 4.1 showing family income of the students.

Particulars No. of students Percentage of students

Below Rs 1 lakh 42 42

Rs 1 lakh –Rs 3 lakh 20 20

Rs 3 lakh – Rs 5 lakh 20 20

Above Rs 5 lakh 18 18

Total 100 100

(Source: Primary Data)

Figure 4.1 showing family income of the students.

Family income of the students

42

20 20
18

BELOW RS 1 LAKH RS 1 LAKH –RS 3 LAKH RS 3 LAKH – RS 5 LAKH ABOVE RS 5 LAKH

Interpretation:

From the above table and figure we can understand that the family income of majority
of the students is below Rs. 1 Lakh. About 40 % have income between 1 lakh and 5
lakh and the rest have family income above 5 lakhs.

29
 Table 4.2 showing whether students have income.

Particulars No. of students Percentage of students

Yes 7 7

No 93 93

Total 100 100

(Source: Primary Data)

Figure 4.2 showing whether students have income.

If students have income

NO 93

Yes
No

YES 7

0 20 40 60 80 100

Interpretation:

The above table and figure show that above most of the students does not have any
income. The rest does not have any income.

30
 Table 4.3 showing various sources of income of the students.

Particulars No. of students Percentage of students

Pocket Money 45 45

Scholarship/ Grant 30 30

Job 2 2

Business 3 3

Others 20 20

Total 100 100

(Source: Primary Data)

Figure 4.3 showing various sources of income of the students.

Various sources of income of the

students

45

30

20

2 3

POCKET MONEY SCHOLARSHIP/ JOB BUSINESS OTHERS

GRANT

Interpretation:

From the above table and figure, we can understand that pocket money is the main
source of income for most of the students. Some have scholarship/ grants and the rest
have various other sources of incomes.

31
 Table 4.4 showing amount of money received per month.

Particulars No. of students Percentage of students

Less than Rs 500 50 50

Rs 500 - Rs 1000 19 19

Rs 1000 – Rs 2000 11 11

More than Rs 2000 20 20

Total 100 100

(Source: Primary Data)

Figure 4.4 showing amount of money received per month.

Amount of money received per

month

50

19 20

11

LESS THAN RS 500 RS 500 - RS 1000 RS 1000 – RS 2000 MORE THAN RS 2000

Interpretation:

The above table and figure show that half of the students receive less than Rs. 500 per
month. Some receive more than Rs. 2000, while some others receive amount between
Rs. 500 and Rs. 2000.

32
 Table 4.5 showing monthly spending of students.

Particulars No. of students Percentage of students

Less than Rs 500 30 30

Rs 500 - Rs 1000 47 47

Rs 1000 – Rs 2000 11 11

More than Rs 2000 12 12

Total 100 100

(Source: Primary Data)

Figure 4.5 showing monthly spending of students.

Monthly spending of students

47

30

11 12

LESS THAN RS 500 RS 500 - RS 1000 RS 1000 – RS 2000 MORE THAN RS 2000

Interpretation:

From the above table and figure, we can understand that most of the students spent
amount between Rs 500 to Rs 1000. Some spent less than Rs 500 while others spent
more than Rs 1000.

33
 Table 4.6 showing frequency of shopping of the students.

Particulars No. of students Percentage of students

Once in a month 25 25

Twice in a month 25 25

Three to Four times in a 40 40

month

Weekly 10 10

Total 100 100

(Source: Primary Data)

Figure 4.6 showing frequency of shopping of the students.

Frequency of shopping of the

students

40

25 25

10

ONCE IN A MONTH TWICE THREE TO FOUR TIMES WEEKLY

Interpretation:

From the above table and figure we can say that majority of the students goes to
shopping three to four time a month. Some goes once or twice in a month and some
others goes weekly.

34
 Table 4.7 showing trend of students spending.

Particulars No. of students Percentage of students

Increasing 40 40

Decreasing 12 12

Fluctuating 48 48

Other 0 0

Total 100 100

(Source: Primary Data)

Figure 4.7 showing trend of students spending.

Trend of students spending

48

40

12
0

INCREASING DECREASING FLUCTUATING OTHER

Interpretation:

The above table and figure show that the trend of most of the students spending is
fluctuating while so others is increasing and the rest’s is decreasing.

35
 Table 4.8 showing student’s attractiveness towards the advertisement to buy
products.

Particulars No. of students Percentage of students

Strongly disagree 21 21

Disagree 26 26

Neutral 30 30

Agree 14 14

Strongly agree 9 9

Total 100 100

(Source: Primary Data)

Figure 4.8 showing student’s attractiveness towards the advertisement to buy

products.

Student’s attractiveness towards the

advertisement to buy products

30
26
21

14
9

STRONGLY DISAGREE NEUTRAL AGREE STRONGLY AGREE

DISAGREE

Interpretation:

From the above table and figure, we can understand that most students have neutral
opinion on their attractiveness towards the advertisement to buy products. Some
strongly disagree that they are attracted towards the advertisement while some others
agree to the same.

36
 Table 4.9 showing student’s ranking towards the avenues of spending.

Particulars No. of students Percentage of students

Entertainment 10 10

Food 8 8

Travelling 9 9

Health and Fitness 11 11

Studies 28 28

Others 34 34

Total 100 100

(Source: Primary Data)

Figure 4.9 showing student’s ranking towards the avenues of spending.

Student’s ranking towards the avenues of

spending

34

28

10 11
8 9

ENTERTAINMENT FOOD TRAVELLING HEALTH AND FITNESS STUDIES OTHERS

Interpretation:

The above table and figure show that most of the students rank other factors rather than
that is given as their avenues of spending while some others rank studies and the rest
on entertainment, food, travelling, health and fitness etc.

37
 Table 4.10 showing factors affecting spending behavior of students.

Particulars No. of students Percentage of students

Friends 15 15

Family 25 25

Income 20 20

Ads 19 19

Necessity 5 5

Others 16 16

Total 100 100

(Source: Primary Data)

Figure 4.10 showing factors affecting spending behavior of students.

Factors affecting spending behavior of

students

25

20
19
16
15

FRIENDS FAMILY INCOME ADS NECESSITY OTHERS

Interpretation:

From the above table and figure, we can understand that family is the main factor that
affects the spending behavior is their family. Some of their spending behavior is
affected by their income. Some others spending is based on the advertisements they see
and some of theirs are affected by their friends.

38
 Table 4.11 showing whether students having saving habit

Particulars No. of students Percentage of students

Yes 56 56

No 44 44

Total 100 100

(Source: Primary Data)

Figure 4.11 showing whether students having saving habit

If students having saving habit

NO 44

YES 56

0 10 20 30 40 50 60

Interpretation:

From the above table and figure we can understand that majority of the students have
the saving habit and rest doesn’t have the saving habit.

39
 Table 4.12 Table showing how long have been they started saving.

Particulars No. of students Percentage of students

Less than 1 year 60 60

1-3 years 20 20

3-5 years 11 11

More than 5 years 9 9

Total 100 100

(Source: Primary Data)

Figure 4.12 Table showing how long have been they started saving.

How long have been they started

saving

60

20
11 9

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

Interpretation:

The above table and figure show that majority of the students started saving from less
than a year while some others have been saving from 1-3 years and some from 3-5 years
and others have been saving for more than 5 years.

40
Table 4.13 showing the people who encouraged students to have the saving habit.

Particulars No. of students Percentage of students

Friends 7 7

Family 68 68

Teachers 8 8

Myself 11 11

Others 6 6

Total 100 100

(Source: Primary Data)

Figure 4.13 showing the people who encouraged students to have the saving
habit.

People who encouraged students to

have the saving habit

68

7 8 11 6

FRIENDS FAMILY TEACHERS MYSELF OTHERS

Interpretation:

From the above table and figure, we can understand that family of most of the students
encouraged them for the saving habit. Some of them were encouraged by themselves,
friends, teachers etc.

41
 Table 4.14 showing amount of savings per month.

Particulars No. of students Percentage of students

Less than 500 79 79

Rs 500 – Rs 1000 9 9

Rs 1000 – Rs 2000 7 7

More than Rs 2000 5 5

Total 100 100

(Source: Primary Data)

Figure 4.14 showing amount of savings per month.

Amount of savings per month

79

9 7 5

LESS THAN 500 RS 500 - RS 1000 RS 1000 – RS 2000 MORE THAN RS 2000

Interpretation:

The above table and figure show that, majority of students save less than Rs 500 per
month. Some save between Rs 500 and Rs 1000 and others more than Rs 1000.

42
 Table 4.15 showing the purpose of savings.

Particulars No. of students Percentage of students

Habit 12 12

Higher studies 8 8

Shopping 55 55

To help my parents 5 5

Travelling 20 20

Others 0 0

Total 100 100

(Source: Primary Data)

Figure 4.15 showing the purpose of savings.

Purpose of savings

55

20

12
8 5 0

HABIT HIGHER SHOPPING TO HELP MY TRAVELLING OTHERS

STUDIES PARENTS

Interpretation:

From the above table and figure, we can understand that shopping is the main purpose
of saving of majority of the students. Some students save money for travelling, some
save as a habit while some others save for their future studies and to help their parents.

43
 Table 4.16 showing spending and saving habits of students.

Particulars No. of students Percentage of students

Saving more than spending 74 74

Spending more than savings 17 17

Equal spending and savings 9 9

Other 0 0

Total 100 100

(Source: Primary Data)

Figure 4.16 showing spending and saving habits of students.

Spending and saving habits of

students
74

17
9 0

SAVING MORE THAN SPENDING MORE EQUAL SPENDING AND OTHER

SPENDING THAN SAVINGS SAVINGS

Interpretation:

The above table and figure show the spending and saving habits of students. Most of
the students saves more than spending. Some spend more than savings. Some of the
students have equal spending and saving.

44
 Table 4.17 showing the various saving avenues of students.

Particulars No. of students Percentage of students

Post office savings 5 5

Savings account 71 71

Chittis and Kuries 9 9

Recurring Deposit 8 8

Time deposit 2 2

Others 5 5

Total 100 100

(Source: Primary Data)

Figure 4.17 showing the various saving avenues of students.

Various saving avenues of students

71

5 9 8 2 5

POST OFFICE SAVINGS CHITTIS AND RECURRING TIME DEPOSIT OTHERS

SAVINGS ACCOUNT KURIES DEPOSIT

Interpretation;

From the above table and figure, we can understand that majority of the students save
their money in the savings account. Only some save their money in RD, Chittis and
Kuries, post office savings etc.

45
 Table 4.18 showing factors influencing the saving habits of students.

Particulars No. of students Percentage of students

Interest rate 0 0

Expenses 8 8

Future needs 72 72

Income level 9 9

Others 11 11

Total 100 100

(Source: Primary Data)

Figure 4.18 showing factors influencing the saving habits of students.

Factors influencing the saving habits

of students

72

0 8 9 11

INTEREST RATE EXPENSES FUTURE NEEDS INCOME LEVEL OTHERS

Interpretation:

The above table and figure show that the future needs of the students are the main factor
that influence the savings habit of students. Some other factors which influence are their
expenses, income level etc.

46
 Table 4.19 showing satisfaction of students towards their saving habit.

Particulars No. of students Percentage of students

Highly dissatisfied 1 1

Dissatisfied 12 12

Neutral 20 20

Satisfied 54 54

Highly satisfied 13 13

Total 100 100

(Source: Primary Data)

Figure 4.19 showing satisfaction of students towards their saving habit.

Satisfaction of students towards their

saving habit

54

20
12 13
1

HIGHLY DISSATISFIED NEUTRAL SATISFIED HIGHLY SATISFIED

DISSATISFIED

Interpretation:

From the above table and figure we can understand that more than half of the students
are satisfied with their savings habit and some are of neutral opinion while others are
dissatisfied with their savings habit.

47
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION

48
5.1 FINDINGS

• Most of the students do not have any kind of income.

• Parent’s money is the main source of income of students.
• Half of students receives income less than Rs. 500 Per month from various sources.
• For majority of the students, monthly spending is between Rs. 500 and Rs. 1000.
• More than half of the respondents doesn’t shop every week.
• For most of the students, spending habits are fluctuating rather than increasing or
decreasing.
• Most of the students responded neutral for their attractiveness towards the
advertisement to buy products.
• Majority of the student’s avenue of spending is for travelling.
• For majority of students, it is the availability of money that influence their spending
behavior.
• More than half of students have saving habit.
• Majority of the students have started their savings habit for less than one year.
• It is by the family majority of the students are encouraged to maintain their own
saving habit.
• More than half of the students have savings of less than Rs. 500 per month.
• Majority of students save their money for the purpose of shopping.
• The spending and saving status of majority of students show that their spending is
greater than saving.
• Most of the students prefer savings bank account as their saving avenue.
• It is the future needs of the students mainly influence their saving habit.
• More than half of the students are satisfied with their savings habit.

49
5.2 SUGGESTIONS

• It is better to cultivate the habit of savings.

• Students can re-invest their savings into productive channels like post office and
banks.
• Students can consult their parents for budgeting before spending.
• Students can avoid unnecessary spending in order to increase their savings.

5.3 CONCLUSION

The study was conducted to know the spending and saving habits of college
students of Irinjalakuda. It helps to understand about the spending and saving habits of
college students and also help to understand about the spending pattern of college
students. It helps to identify various factors affecting the spending and saving of
students. It was found that most of the students spent 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 savings bank account as their
saving avenue and post office savings and chit funds are very popular among students.
From the study on spending pattern of students, they are spending higher o=amount on
shopping and travelling.

50
APPENDIX

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 QUESTIONNAIRE

SPENDING AND SAVING HABITS OF COLLEGE STUDENTS WITH

SPECIAL REFERENCE TO CHRIST COLLEGE IRINJALAKUDA.

Name:

Family Income:

• Below Rs. 1 Lakh

• Rs. 1 Lakh – Rs. 3 Lakh
• Rs. 3 Lakh – Rs. 5 Lakh
• Above 5 Lakh.

1. Do you have any income?

• Yes
• No

2. What are the various sources of your income?

• Pocket Money
• Scholarship/ Grant
• Job
• Business
• Others

3. How much will you earn per month?

• Less than Rs. 500
• Rs 500 – Rs 1000
• Rs 1000- Rs 2000
• More than Rs 2000

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4. How much do you spend per month?
• Less than Rs 500
• Rs 500 – Rs 1000
• Rs 1000 – Rs 2000
• More than Rs 2000

5. How often do you go for shopping?

• Once in a month
• Twice a month
• Three to four times in a month
• Weekly

6. What is the trend of your spending?

• Increasing
• Decreasing
• Fluctuating
• Other

7. I am attracted to buy the product shown in the advertisements.

• Strongly disagree
• Disagree
• Neutral
• Agree
• Strongly Agree

8. Please rank the following according to your avenues of spending.

• Entertainment
• Food
• Travelling
• Health & Fitness
• Studies

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• Others

9. Which of the following factors affect your spending behavior?

• Friends
• Family
• Income
• Ads
• Necessity
• Others

10. Do you have saving habit?

• Yes
• No

11. How long have you been started to save?

• Less than one year
• 1 year – 3 year
• 3 year – 5 year
• More than 5 year

12. Who encourage you to save?

• Friends
• Family
• Teachers
• Myself
• Others

13. How much amount do you save per month?

• Less than Rs 500
• Rs 500 – Rs 1000

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• Rs 1000 – Rs 2000
• More than Rs 2000

14. What is the purpose of your saving?

• Habit
• Higher Studies
• Shopping
• To help my parents
• Travelling
• Others

15. What is your spending and saving status?

• Saving more than spending
• Spending more than saving
• Equal spending and saving
• Others

16. What are your various avenues of saving?

• Post office saving
• Savings account
• Chittis and Kuries
• Recurring Deposits
• Time deposits
• Others

17. What are the factors influencing your saving habits?

• Interest rate
• Expenses
• Future needs
• Income level
• Others

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18. Are you satisfied with your saving habit?
• Highly dissatisfied
• Dissatisfied
• Neutral
• Satisfied
• Highly satisfied

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BIBLIOGRAPHY

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 BIBLIOGRAPHY

Websites

1. www.dealsunny.com
2. www.bugetingin.com
3. www.slideshare.net
4. www.thehindubusinesslines.com
5. www.investinganswers.com

Books

1. Peter Rose, “Money and Capital Markets”, Mc Grow – Hill Publication, 6th
edition.
2. Dr. A P Philip, “Capital Market and Investment Management”, 4th edition,
Shobha publication, Changanassery.
3. E Gordon, P K Gupta, “Banking and Insurance”.

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