Financial Planning: Finance and Non-Finance Major

Students of East West University

Project Report Submitted to the Department of Business Administration

to Fulfill the Degree of Bachelors of Business Administration

Prepared for
Dr. Javed Bin Kamal
Assistant Professor
Department of Business Administration
East West University

Prepared By
Abu Ubaydah Rohan
2019-3-10-093
Major in Finance
22 December 2023
Declaration

I hereby declare that,

1. The project report submitted is my/our original work while completing a degree at

East WestUniversity.

2. This report never has been, and never will be reproduced for any other BBA

course or anyother purpose.

3. This report does not contain material previously published or written by a third

party, exceptwhere this is appropriately cited through full and accurate referencing.

4. I have acknowledged all of the main sources of help.

Student’s Full Name & Signature:

Abu Ubaydah Rohan

2019-3-10-093

Supervisor’s Full Name & Signature:

Dr. Javed Bin Kamal

Assistant Professor, Department of Business Administration
East West University
Letter of Transmittal

Javed Bin Kamal

Assistant Professor
Department of Business Administration
East West University
Aftabnagar, Dhaka-1212, Bangladesh

Subject: Submission of project report on “Currency Depreciation: A Comparative Study on

Developing Economies”

Dear Sir / Ma’am,

As a requirement for the completion of a project under the BBA program of East West
University, I would like to submit my project report titled “Financial Planning: Finance and
Non-Finance Major Student of East West University”. I have completed my 10-week project
work period in East West University under your supervision, starting on 1 October 2023.

I sincerely hope that this report fulfills the objectives and requirements of my project and that it
finds your acceptance. I have attempted my best to finish the report with the essential data and
recommended proposition in a significant compact and comprehensive manner as possible.

I am grateful to you for your guidance and kind cooperation at every step of my endeavor on this
report. I shall remain deeply grateful if you kindly take some pen to go through the report and
evaluate my performance.

Sincerely yours,

Abu Ubaydah Rohan

2019-3-10-093
Department of Business Administration
East West University
Date: Decembar-2-2023

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Acknowledgement

First of all, I would like to thank my honorable faculty supervisor, Dr. Javed Bin Kamal sir,
Assistant Professor, Department of Business Administration, East West University, for his
support, direction and invaluable insights throughout the entire research process. His knowledge
and support have been invaluable in helping me shape this thesis.

I would also thank my family for their constant encouragement, understanding and belief in me.
Their affection and encouragement gave me the strength to complete this academic adventure.

I would like to thank my friends also. They contributed through meaningful discussion and
valuable insight which enhancing the depth and breadth of this research.

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Table of Contents
Executive Summary.......................................................................................................................5
Chapter: 1 Introduction................................................................................................................6
1.1 Objective of the Study.........................................................................................................................7
1.2 Methodology of the study....................................................................................................................7
1.3 Scope and Limitation...........................................................................................................................8
Chapter 2: Literature Review.......................................................................................................9
Chapter 3: Discussion..................................................................................................................13
3.1 Key findings of the study:..................................................................................................................13
3.2 Importance of financial planning among finance and non-Finance student......................................14
3.3 Personal Finance among East West University student.....................................................................15
3.4 Financial Concept literacy between Finance and non-Finance major student...................................17
3.5 Finance and non-finance major student involvement in investment.................................................18
3.6 Finnacial Planning chllanges face by students:.................................................................................19
3.7 Post-Graduation consideration among Finance and non-Finance major student..............................20
Chapter 4: Findings.....................................................................................................................21
4.1 Quantities Analysis from Survey.......................................................................................................21
Chapter 5: Recommendations and Conclusion.........................................................................25
5.1 Recommendations..............................................................................................................................25
5.2 Conclusion:........................................................................................................................................27
References.....................................................................................................................................28
Appendix:.....................................................................................................................................29

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Executive Summary

This study discovers the East West University finance and non-finance major students’
awareness about financial planning. Financial planning is a step-by-step process for future
financial achievement. This research finds out how East West University students prepare
themselves for achieving financial goals in the future. Financial planning is very important for
both finance and non-finance major students. Without financial planning, students may face
challenges in the corporate world. The real world is much different from the theoretical terms.
After the graduation student will find themselves in various job sectors. That’s why it’s very
important to know how a student thinks about the financial planning at this moment. This study
shows how students will invest, which investment tools they apply, how they create budget for
their future. The importance of financial planning, financial concept literacy among students,
student investment, and the importance of budgeting are all discussed in this research paper.

This report is created based on primary and secondary data. Most of the data of this report
contain primary data which is collected from the survey. For this report data has been collected
through survey questions. 30 students from East West University took part in this survey and
provided their thoughts on financial planning. The survey has been taken online.

The major findings of this research are that finance major students are more aware of future
financial planning compared to non-finance major students. Even finance major students do not
get practical financial planning knowledge, as if East West University does not offer any courses
related to financial planning.
This research paper consists of 5 chapters. Chapter 1: Introduction; Chapter 2: Literature
Review; Chapter 3: Discussion; Chapter 4: Findings; and Chapter 5: Recommendation and
Conclusion.

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 Chapter: 1 Introduction

Financial planning is a future planning one may needed to achieve financial goals. It is a process
to expect a better future. Through this a student may able to know how funds are raised and how
it is utilized according to business plan and how to manage the risk included with the investment.
Financial planning will be a beginning process for finance and non-finance major student to
understand about micro and macro level economy of a country. Financial planning may include
finance, investments, taxes, savings, retirement, insurance and many more. The primary
objective of financial planning is to help students make informed decisions about how to allocate
their resources to meet short-term and long-term financial goals. As the world is moving toward
continuous investment, budgeting and decision making with various disciplines, that’s why it’s
important to understand the unique perspectives and challenges of these student cohorts becomes
increasingly important.

Financial planning is important for both finance and non-finance student. After graduation
students want to think about long term objectives like planning to buy house, saving for children
education etc. To get those long term objective they may need budgeting. Trough saving and
investment they can get the budget. Saving money in bank for a certain amount of interest or
invest to share. Also, on income how the tax should be paid and how much cash should be in
hand after retirement. Without having the knowledge of financial planning ensuring long term
and short objective aren’t possible. Both departments face various challenges on their financial
planning journey. This study will recognize those challenges and helps East West University to
arrange their course planning to eliminate those challenges.

Students majoring in finance take off on a journey that includes exploring the fundamental ideas
of risk management, investment, and financial analysis. They possess the knowledge necessary
for effectively navigating the complicated world of asset allocation, money management, and
financial decision-making. However, even though they focus on a variety of subjects like the
humanities, sciences, or arts, students who do not major in finance still need to understand the
significance of financial planning. In a time when financial literacy is deemed essential for all
students, all students need to understand the basic concepts of investing, saving, and budgeting.

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Many non-major students only complete introductory finance course of finance that’s why they
may know less about financial planning. That’s why East West University should design a
course to increase non-major finance students view point about finance. With their extensive
knowledge, finance majors might choose vast investment tools, while non-finance majors might
stick to more traditional methods.

1.1 Objective of the Study

The primary objective of this report is evaluating the financial knowledge among students
majoring in finance and those not, taking into account their knowledge of debt management,
investing, budgeting, and basic financial concepts. Identify the particular areas of financial
planning that students majoring in finance or non-finance may not know enough about to enable
focused educational interventions. Analyze both groups' financial practices, routines, and
attitudes while taking investment preferences, risk tolerance, and savings behavior into account.
Identify the long and short term plan of both department students. Examine whether a student's
major choice affects their long-term financial planning outlook, keeping in mind their financial
goals, and income expectations. Based on the findings, provide recommendations for students
enhance financial literacy and planning skills, and educational structure. To better prepare
students for managing their personal finances in the future, consider the possibility of
incorporating financial planning education into the curricula of both finance and non-finance
majors.

1.2 Methodology of the study

Type of Study: This is report is conducted by cross- sectional study to capture snapshot of
financial planning knowledge and practice among finance and non-finance major students.

Data Collection: For this report data has been collected from both primary (East-West
University student) and secondary (Internet) sources. Primary data is collected through Survey
questions. Create a comprehensive questionnaire that addresses issues like debt management,
investing knowledge, budgeting, financial literacy, and financial objectives. This survey is

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conducted on 30 students. Survey questions are both qualitative and quantities. Survey is
conducted online through Google form. Reason behind choosing this method is online survey is
time consuming and participate will get enough time to think before giving any answer. Primary
question was financial planning practices, attitudes towards financial planning of finance and
non-finance major students.

Data Analysis: Employ statistical tool to analyze the collected data from survey. Compare
financial planning awareness and habits between finance and non-finance student.
Recommendation: Provide recommendation for improving financial literacy or financial
planning program for both finance and non-finance student.

1.3 Scope and Limitation

The scope of this research is not just limited to East West University students. Rather, the
analyses carried out in this report can be used to evaluate the financial planning knowledge of
students around the country in order to develop Bangladesh university student’s financial
awareness.

Major Limitation of the study:

 This research is conducted based on the demand of a project (BUS 498) to complete the
semester. That’s why there was only 2 months time to complete the research. This is a
major drawback of this research.

 Due to short time frame this researchable to collect data only from 30 students.

 Due to political issues, offline surveys aren’t possible to take. That’s why online surveys
have been taken.
 Participants might inaccurately report their financial behaviors, leading to a potential bias
in the collected data.

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 Chapter 2: Literature Review

Financial planning is important for students of all backgrounds and educational levels. Non-
finance majors have some lack in knowledge and abilities needed to manage their finances
successfully in the future, despite finance majors having a solid foundation in financial concepts
and tools. This literature review explore the knowledge regarding financial planning for both
finance and non-finance major students, highlights the major differences in their challenges, gap
and potential learning object for their future betterment.

Numerous studies have explored the financial literacy levels of university students. It’s important
to have financial knowledge to make the right financial decisions in the future. Financial
knowledge not only benefits individuals but is also good for developing the economy of a
country. According to Lusardi and Mitchell (2014), financial literacy is a crucial factor in sound
financial decision-making and future economic well-being. Their study finds that, on average,
university students showed limited financial knowledge, with gaps in areas such as budgeting,
debt management, investment portfolios, risk management, etc. This study shows the results of
both departmental performance and gaps. The literature also points out that differences may arise
because of family background. In Bangladesh, there are still families where children choose their
subject based on their family background. In our country, students came to learn that those who
study science can earn more in the future. This thought let them keep away from financial
knowledge. But finance is related to every aspect of life. Because of this lack of financial
knowledge, they will make wrong decisions in the future. However, the literature often brings
attention to the differences in financial literacy levels between various academic majors.
(Annamaria Lusardi, 2014)

According to research on “The Impact of Financial Literacy Education on Subsequent Financial

Behavior," finance major students tend to score higher on financial literacy compared to non-
finance major students. This report supports the idea that financial concepts learned in university
have a beneficial impact on financial knowledge. They also added that students who took a
management finance course in university tended to save a higher proportion of their incomes
than others who did not. It’s because finance major students get enough chance to practice
financial planning by taking finance-related courses. On the other hand, non-finance students get

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less time to gather knowledge about finance before graduation. This research also mentions how
a university should offer courses to non-finance major students. Many universities encourage
students from other majors to take at least one finance-related course as an open credit hour.
Additionally, the study indicates that, when compared to their non-finance counterparts, finance
majors do not always show better financial planning skills. The difficulty is in the knowledge
gap that exists between the theoretical understanding of financial concepts learned in finance
classes and their actual practical implementation. University students do not get enough practical
knowledge about the future financial market. Sometimes, because of booring textbook
knowledge, they lose interest, which results in average finance knowledge, and they make wrong
financial decisions in the future. Financial students may underestimate the importance of
personal finance and give more importance to their career goals than financial security. (Lewis
Mandell, 2009)

According to a another research which suggest that students who do not major in finance
commonly lack the confidence and knowledge needed to create and carry out successful
financial plans. They don’t get financial knowledge from early stage that’s why they don’ know
which investment should be good for them, how they should make expenditrue plan or how
creat a budget for long term. Findings of this research suggest that university education helps
most to build financial plaaning knowledge among students.This research also suggest that
university should create a financial literacy course for non-finance major students. That course
will provide basic financial knowledge such as budgeting, relation betwwen risk and investment,
saving etc. Many non-finance major student don’t have the idea about short term or long term
financial goal. They get confused whey they are asked how they going to utilize the fund they
earned. (Bernheim, 2001)

According to a resrch titled “Essentials of Financial Planning” finds that majority of students
have not enough preparation or their future, but they are determined to achieve long term goals
such as purchasing hour or car. Students make an expenditure plan before graduation rather than
thinking about how to make a budget plan to get those things. Research also suggests that only a
few students know about budgeting plans. That’s why it’s very important to provide personal
budgeting knowledge at an early stage. According to a survey, 30% of students have no
retirement plans, and 70%t have not made any preparations for an unexpected drop in income.

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Students who practice discipline in their spending, saving, and investing can achieve financial
stability. University should create program where students can practice their theoretical
knowledge in order to gain confidence. Many of these issues could be resolved if students were
aware of and knowledgeable about financial matters, also this personal finance subject should be
offered by every university in their academic curricula. (Williams, 2008)

Most of the researcher give importance on financial behaviour. FInacial behavour tailor a student
toward financial literacy. Research explores the decision-making processes, risk perceptions, and
behavioral biases of finance and non-finance majors. Because investment depend on the nature
of someone attitutude. So, its proves that postive behavior is needed in order to have effective
financial planning knowledge. Creating effective educational programs requires an
understanding of the psychological influences on financial planning decisions. Carrer aspiration
is another factor creating difference behind finance and non-finance major student. Finance and
non-finance major student have different expections and ambitions ro financial planning to based
on their carrer paths. That’s why more specific educational program is needed in order to tailor
them.

Universsities need to creat practical program to provide financeial knowledge. Where students
sell and buy shares from market to create portfolio and how they manage it. From bookish
knowledge its hard to define the real world market for both department students. While finance
majors may benefit from traditional finance courses, non-finance majors must be engaged
through other methods. In order to find out their effect on enhancing knowledge of finances and
planning skills, technology-enhanced learning, experiential programs, and interactive tools
should be added in the education curricula.

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Gaps in the research:
 There is a lack of research on the effects of different financial education strategies on
particular financial behaviors.

 Further research is required for understanding the ways in which cultural and
socioeconomic elements impact the financial planning requirements and practices of
students from different backgrounds.

Implications for Practice:

 Regardless of major, comprehensive financial education programs should be a top
priority for universities.

 These programs should be guided to the particular need and learning style of different
major student.

 Financial education need to be collaborate with other campus resources and events rather
than being limited to classroom settings. It will provide practical literacy among student
about finance.

 University should arrange different finance seminar for non-finance major student timely
in order to motivate and provide the knowledge about financial planning among them.

The literature review concludes by highlighting the importance that financial literacy plays in
affecting financial planning behavior, especially among undergraduates. It highlights the
necessity of successful financial education programs to enhance student’s ability to make sound
financial decisions and enhance their general well-being.

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 Chapter 3: Discussion

This research is conducted to find out the financial planning awareness among finance and non-
finance major (CSE, English, HRM, Accounting, Marketing, EEE) student of East West
University. Financial Planning is important for both finance and non-finance major student. As if
finance is co-related with every aspect of life. From personal to business finance is important.
When student from both departments asked this question they provide positive responses.
Because they know if they want to purchase a book or printout of their assignment they need
finance for that. Both major students future path will be different but still financial knowledge is
important for both of them. After the graduation they will start raising fund for their future
spending. But if they have no idea how to utilize the fund they have they will take wrong
decision and lose all the money they earned by working hard. This research focused on personal
finance. How student of East West University view their personal finance.

3.1 Key findings of the study:

Finance Major: Finance major student have higher financial literacy compared to non-finance
major students. Because of academic exposure from early stage. But, the survey result also
suggests that finance major student have the literacy about financial planning but they neglect the
personal finance part. Most of them answered what financial planning is, but they weren’t able to
answer how to manage budgeting for personal financing. But they answered properly when they
asked about financial concept question such as which investment method will be good, what is
the relation between risk and return. These questions are based on their course learning but they
lack when they are asked about personal financing.

Non-Finance Major: On the other hand, non-finance major student lack financial planning
knowledge because of lack of financial knowledge and confidence. This indicates that they need
specific financial knowledge education. Most of the non-finance major student unable to answer
what is financial planning and also all other finance knowledge related questions. East West
University should design a course where non-finance major students can take it as an open credit.

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This course will help non-finance major students tailor their basic financial knowledge so that
they can make further financial decisions.

Teaching method: East West University offer many finance related courses like Managerial
finance, International Finance, Risk Analysis, Banking. But when student asked are they taken
any specific financial planning courses mass answer was no. Which indicate East West
University still don’t offer any specific course related to personal finance which help to make
financial planning or future decision. Finance major student theoretically understand finance
concept but they have less knowledge when they practice those things practically. Practical
learning process will create more broaden view among finance major student about financial
planning. Holistic financial planning education should be implemented in order remove those
gapes. Students majoring in finance or non-finance are vulnerable to behavioral biases that affect
how they make decisions. Recognizing these biases is essential to creating educational programs
that foster practical skills in preventing conceptual mistakes in alongside providing financial
knowledge. The discussion makes it necessary to think about flexible and specific teaching
methods in order to meet the various learning requirements of students with various academic
backgrounds.

3.2 Importance of financial planning among finance and non-Finance student:

Finance students may believe that they have an advantage, but it can reinforce their knowledge
by using it in real-world situations by making plans ahead of time. Investing, managing debt, and
creating a budget are all practical skills. Financial planning takes into consideration risk
management and life goals beyond numbers. Finance students may understand how financial
decisions affect their personal goals, entrepreneurship, or early retirement by making early plans.

Financial planning helps non-finance students become more financially literate, enabling them to
overcome obstacles in the economy, make wise decisions, and improve their overall financial
health. Financial illiteracy shouldn't result from not studying finance. Early planning gives non-
finance students the skills and self-assurance they need to successfully negotiate the complicated
world of money. These are essential skills for everyone, regardless of educational background:
managing debt, investing, and budgeting. Financial planning provides a foundation for making
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informed decisions that are in line with one's unique needs and goals, whether it's renting vs.
buying a home, choosing a career path, or managing student loans for non-finance students.

Findings suggest that most students save their money for future purposes such as higher
education, future expenditures, etc. This indicates that East West University students are aware
of future planning. Students mentioned that they want to purchase a house or car or want to be
financially stable in the future. Which require planning from an early stage. The university stage
is the best time to make a future financial plan. Financial planning will help them reach their
long-term goals. Financial planning is a step where students set objectives in order to achieve the
final goal. Practical financial planning knowledge will motivate students to save money for the
future and set future budgeting methods.

In conclusion, financial planning is a universal need across all academic fields. Both finance and
non-finance major students gain many benefits from learning the concepts and abilities related to
efficient financial planning. It gives you the ability to make wise decisions, negotiate the
complicated world of finance, and create a stable financial future.

3.3 Personal Finance among East West University student:

When students are asked if they have any budget planning for managing their personal finances,
the survey results show that a large majority of people (86.7%) do not have a budget for
managing their personal finances. Even the majority of finance major students don’t know how
to plan for the future budget. This suggests that a large number of students might not understand
the value of budgeting as a tool for handling finances and reaching financial objectives. Making
informed spending decisions, saving money for the future, and keeping track of income and
expenses are all made possible with the help of budget planning. Even though finance majors
understand the importance of budgeting, they would likely acknowledge the challenges involved.
They might discuss common challenges like unexpected expenses, lack of motivation, and
difficulty tracking spending. But a non-finance major student is totally unaware of budgeting.
But because of a lack of personal finance education, both department students lack budget
planning for their personal lives. That’s why personal finance is important for both department
students. Findings suggest students haven't taken any financial planning courses for their

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personal finance literacy. It could happen because students might not be aware of the existence
of financial planning courses or their benefits, or East West University doesn’t provide any
financial planning courses in their academic curricula. The majority of the students are keenly
aware of financial planning. Most of them responded that financial planning is a process to create
a strategy in order to gain financial success in the future. Students studying finance are probably
more focused on their financial objectives and are aware of the value of saving money. Finance
major students are more aware compared to non-finance students because they know when to
invest their savings. Non-finance major students have less access to financial education or
resources, and they may be more likely to make financial mistakes. These findings suggest that
through theoretical knowledge, students have knowledge about financial planning, but they don’t
have an idea about how to utilize it in their personal lives. This gap is created by not giving
proper education on personal finance at the university stage.

This table shows courses East West University offer to their finance major:

Course Code Course Title Major Focus

Fin 425 Investment Analysis. underlying concepts, theories,
and models related to the
analysis and management of
investment in financial
market
place
Fin 435 Managerial Finance making decisions in companies
and firms with efficiency
Fin 465 International Finance theoretical and practical aspects
of financial management of
multinational companies
Fin 408 Financial Analysis and Control Proper analysis of financial
statement of business
organizations.
Fin 410 Insurance tools and techniques of risk
management and insurance
Fin 335 Financial Institution and Financial Markets and
finance Institutions in Bangladesh
Fin 380 Real Estate Finance comprehensive understanding
of real estate valuation, house
price dynamics,
Fin 350 Banking Importance of commercial
banking in the economic
development
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This table suggests that East West University have no course offered related to personal finance
or financial planning. All of the above courses help finance major students increase their
theoretical knowledge of the financial market and the performance analysis of organizations.
Managing Personal financial education is very important alongside market and organization.
Practical Personal finance education will boost up finance major students confidence in creating
future personal financial plan to achieve long term goal.

This below table shows financial courses East West University offer to their non-finance major
students: (data is taken from East West University website)

Course Code Course Title Major Focus

Fin 101 Principle of finance basic concepts, principles, of
finance
Fin 201 Business Finance Both theoretical and practical
issues of financial decision
making tools for the students.

Both these courses helps non-finance major student to gather some theoretical knowledge about
finance. From those course they may able to know how fund raised, how to utilize it. But they
also get neglected the personal finance part and make more wrong decision in future as if they
have less theoretical knowledge about financial market. East West University should offer a
universal course designed on financial planning so that students can make their own financial
plan in order to achieve financial goal.

3.4 Financial Concept literacy between Finance and non-Finance major student:

The majority of respondents (56.7%) rated their understanding of financial concepts as medium.
Most of them are financial majority student. Non-finance majority student (33.3%) rated their
understanding as poor. This can lead to gaps in their understanding of key concepts like time
value of money, risk and return, and diversification. The findings demonstrate that both major
students, regardless of background or educational attainment, require improved financial
education. 80% student from both departments believes that portfolio investment will be the best

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for building wealth in long term. Which indicates non-finance major student have certain
knowledge about investment. But financial student will make more accurate decision compare to
non-finance major student findings suggest that majority non-finance student are not involved in
any investment.

3.5 Finance and non-finance major student involvement in investment:

From that graph, we can see that most of the students (80%) invest their money in the stock
market. Most of them are finance major students. Non-finance major students have less
knowledge about the share market. But finance majors have theoretical knowledge about stock
beta, CAPM, Share valuation, etc. As a result, the majority of students (80%) major in finance.
Few non-finance majors invest in the share market alongside online businesses and saving
schemes.

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3.6 Finnacial Planning chllanges face by students:

According to an article in “The Daily Star," financial planning for university students is
challenging because of global crises and economic inflation. Increasing tuition costs and the
volatility of the job market can influence the financial planning process. They also added that, in
this challenging economic condition, budgeting tools will help students. By creating a budgeting
plan, students can take control of their funds and build a strong financial base. Another challenge
students may face is that they think about their recent economic condition rather than thinking
about the future. Future financial instability may result from concentrating only on short-term
requirements and ignoring long-term objectives like retirement or emergencies. (Purna, A guide
to planning your finances as a college student, 2023)

Not having enough practical education is also a reason behind financial planning failure. After
getting theoretical knowledge, students have no space to utilize it practically. Students should be
provided with knowledge related to the share market and personal budgeting. Students should
create a budget chart based on their preferences, which will increase their financial planning
abilities.

Makret situation is changing everyday that’s it will be a hard task for non-finance major student
to take financial decision. When student asked abou the relation between risk and return only a
few students responded correctly which indicate most of the non-finance student will risk averse.
Overcoming this fear by undertsanding financial concept is essential for successful financial
planning.

Both finance and non-finance major students require overcoming different challenges to achieve
financial goals in the future. Finance major students need to close the gap between theoretical
knowledge and practical application. On the other hand, non-finance major students need to
develop basic financial literacy and confidence.

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3.7 Post-Graduation consideration among Finance and non-Finance major student:

Findings suggest that 60% of students have planned their post-graduation lives. But the majority
of non-finance major students weren’t able to consider it yet. The majority of finance students
want to join the corporate world, and some others want to do business or join a CA firm. After
graduation, both department students will have different career paths. But finance major students
are well aware of which career will be beneficial for them. The university should create a career-
building program for non-finance major students, which helps to build their confidence.
Financial education helps you choose the right career plan. If students have no planning before
their graduation, it will be hard for them to achieve their long-term goal. Non-finance students
will struggle when they face the real world because market conditions are changing daily. That’s
why it’s essential to have financial planning before graduation.

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 Chapter 4: Findings

4.1 Quantities Analysis from Survey:

Findings collected from 30 student responses.

Figure 1:

Among finance and non-finance student of East West University 74% student have moderate
financial literacy knowledge. Very few (10%) student have high knowledge and 10% student
doesn’t have any knowledge about finance. So, it indicates majority of students have basic
financial knowledge from both departments.

Figure 2

Majority (77%) of student believes that finance is co-related with every aspect of life. Without
finance one can’t achieve his long term goal. This also indicates that both department students
are aware of basic financial concept.

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Figure 3

The understanding of basic financial concepts among finance and non-finance students is very
high. The majority of students (60%) understand how risk is related to return, what
diversification is, and how inflation and other things influence the value of money.

Figure 4

The majority of students (70%) believe that investing in more than one asset will hedge the risk.
Both finance and non-finance major students showed that they have basic knowledge about the
financial market.

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Majority of students (90%) don’t take any specific course releted to financial planning. It
indicates East West University doesn’t offer any courses related to personal finance.

Figure 5

90% of students didn’t have any plans for their future budgeting. Even finance major students
lack here. Budgeting helps to ensure that the savings are enough to fulfill the expenditure. It
indicates both finance and non-finance major students are lacking in financial planning. Only a
very few (10%) students have a budget plan for their future, like a part-time job or a home tutor.

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Figure 6

Majority of the student (84%) from both department save their money for their long term
expenditure. But as if majority student didn’t follow budgeting they couldn’t able to track their
savings. 16% non-finance student aren’t saving it’s indicate that they are not well aware of future
market up-down

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 Chapter 5: Recommendations and Conclusion

5.1 Recommendations:

This research finds out various challenges faced by both finance and non-finance major students
while making financial plans. I have discussed many solutions regarding this research topic, and
in this section, I will provide some crucial points for the readers.

Financial planning literacy is important alongside financial concept literacy. Financial planning
helps both department students guide themselves in order to achieve long-term goals. Research
findings suggest that finance major students are more aware of their future financial planning
compared to non-finance major students. Because finance major students have theoretical
knowledge from their courses, non-finance major students only have basic knowledge. In order
to increase non-finance major student financial planning literacy, the university should offer the
following suggestions:

1. Personal Finance Related seminar:

The university may arrange a seminar for non-finance major students where students will learn
the importance of personal finance. How a goal should be set and what will be the objective to
achieve that. Through question and answer, students' literacy levels can be measured. These
types of seminars will boost non-finance major students’ confidence. Fundamental ideas like
investing, saving, and budgeting should be covered in these seminar to establish the groundwork
for effective financial planning. Through this seminar financial market, risk-return relation and
investment can be made more understandable among non-finance major student.

2. Offering Financial Planning related course:

The university can offer financial planning-related courses as per open credit hours. Where non-
finance major students will practice the lessons they came to learn from the seminar. This will
create interest in finance and make them more aware that the future market will be dynamic.

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On the other hand, finance major students bring plenty of theoretical knowledge to topics like
quantitative analysis, risk management, and financial instruments. However, they also face
challenges in applying that knowledge in a real, dynamic world. This is why they also make
wrong decisions in the future. According to the research findings, finance majors at East West
University aren’t as aware of budgeting as non-finance majors. They don’t get the space to
exhibit that knowledge properly. This decreases their confidence. To increase their practical
knowledge, I would like to suggest on-campus simulations that simulate the real dynamic market
and real-world-based case studies. Also, ethical financial decision-making should be included in
the academic curricula; it will prepare finance major students for the complexity of the real
market.

3. Cross Collaboration Opportunities:

Collaboration between finance and non-finance major students should be encouraged so that
students can develop a holistic understanding of financial planning. Joint workshops and case
studies for both department students can provide valuable insight and close the gap. This
collaborative approach not only enhances overall learning but also increases confidence in the
professional financial world.

4. Access to Resources:

East West University should ensure that students have access to essential financial resources.
Organized mentorship programs, access to finance faculty, and creating self-motivating
programs can bridge the gap between theoretical knowledge and practical implications for both
finance and non-finance major students.

East West University can provide their students with the abilities and information needed to
effectively deal with the complexities of personal financial planning by putting the suggestions
mentioned above into practice.

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5.2 Conclusion:

After graduation, students may find themselves on various work paths. They will start earning
money in order to fulfill their short- and long-term goals. But if they don’t have any financial
planning before and jump into work life, they will get confused. Because of political conditions,
inflation can influence their financial decisions. That’s why, for future success, financial
planning is required for both department students. Identifying the specific problems of each
group and implementing targeted solutions can remove the gap between theoretical and
application-based knowledge. Preparing students at an early stage can be beneficial for the
country's economy as well. However, by using a holistic approach, simulations, and motivations,
East West University can make their students aware of financial planning.

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References:

1. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial

literacy: Theory and evidence. American Economic Journal: Journal of Economic
Literature, 52(1), 5-44.
2. Bernheim, B. D., Garrett, D. M., & Maki, D. M. (2001). Education and saving:: The
long-term effects of high school financial curriculum mandates. Journal of public
Economics, 80(3), 435-465.
3. Mandell, L., & Klein, L. S. (2009). The impact of financial literacy education on
subsequent financial behavior. Journal of Financial Counseling and Planning, 20(1).
4. Williams, A. E. (2008). The essentials of financial planning for college graduates.
5. Purna, A. T. (Wed Apr 5, 2023). A guide to planning your finances as a college student.
Retrieved from The Daily Star: https://www.thedailystar.net/shout/news/guide-planning-
your-finances-college-student-3289711

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 Appendix:

Qualitative Question:

1. What is Your Major Area?

2. What do you understand about the term "financial planning" and what will be the
importance of financial planning in the future?

3. What are your long-term and short-term financial goals?

4. What types of investments, if any, are you currently involved in?

5. Discuss the relationship between risk and return in financial investments. How might
an investor balance the two when making investment decisions?

6. Have you started considering your post-graduation career and income prospects?

7. Do you believe there is a need for more financial education in academic curricula? If
yes, what specific topics do you think should be covered?

8. How do you think current economic conditions influence your financial decisions and
planning? Provide an example if possible.

Qualitative Question:

1. How would you rate your level of financial awareness?

 Very Low
 Low
 Moderate
 High
 Very High

2. "Finance is co-related with every aspect of life." Do you agree with this statement?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

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 3. How would you rate your understanding of financial concepts such as time value of
money, risk and return, and diversification?
 High
 Medium
 Poor

4. Do you currently have a budget for managing your personal finances?

 Yes
 No

5. Are you currently saving money for specific financial goals (e.g., emergencies, education,
future investments)?
 Yes
 No

6. Which investment approach do you think is best for building wealth over the long term?
 Portfolio Investment (Investing in Group of Asset)
 Individual Asset Investment
 Combination of both

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