INTRODUCTION

Financial literacy can means that one is literate in the issues of managing money
(including , saving, budgeting , investing , credit , insurance and taxes ) and utilizes that
knowledge to gain personal welfare through financial security. Financial literacy is a
major challenge faced by all countries globally. Financial literacy is the mix of one’s
acquaintance skill and attitude towards financial matters. It helps to make informed
decision and wellbeing of an individual . working women are more aware of the type of
investment instrument and take better decisions than non -working women. Women have
positive about money and finance matter reflecting their prudence, discipline, and
alertness while dealing with household finances. They are cautions about saving money
for future despite of being from middle income group and their educational level but poor
financial knowledge and lack of awareness about investment products proves to be a
hindrance for them.
Financial literacy is a combination of awareness, knowledge, skill, attitude and
the behavior necessary to make sound financial decision and ultimately achieve
individual financial well being. It helps an individual resources thus helping in overall
economic security. It directly related to the well being of an individual and society as a
whole, since it helps an individual to manage their personal financial matters like savings,
investment, tax, planning , retirement planning etc. and enables their to understand how
more money can be generated and used in more effective and efficient manner.

1
 STATEMENT OF THE PROBLEM

Association of awareness towards saving and investment with the age, education
and socio economic status for working and non-working women. Women may lack of
knowledge and confidence with regard to money management and investment programs
impacts their ability to reach their financial potential . nonprofessional women have very
low financial literacy and income than professional women.

OBJECTIVES OF THE STUDY

1. To study the awareness of respondents towards saving and investment.

2. To study the factors influencing the financial literacy among women.
3. To study the financial literacy interventions by government in India.
4. To explore the measures for enhancing the financial literacy among women in
India..

SCOPE OF THE STUDY

The study of financial literacy and personal financial management among

professional and non-professional women in Thrissur District has greater scope.
Financial awareness and knowledge is very important to everyone, especially for the
women. The participation of the women in economy will contribute to their own
wellbeing as well as nations’ economic growth.

RESEARCH METHODOLOGY
Research methodology is the systematic, theoretical analysis of the methods
applied to a field of study. For the purpose of the study both primary and secondary data
have been used. Primary data collected through questionnaires .Secondary data has been
collected by referring text books, magazine ,journal ,annual reports and internet sources.
The study was conducted using non probability sample method with the help of
questionnaire

2
RESEARCH DESIGN
For this study the research design used is analytical research which is the simplest
research for fact finding investigation to gather descriptive information. It provides
information for formulating complex studies. The data needed for the study collected
through questionnaire.

SAMPLE SIZE
The sample size considered for the study is 100 professional women

SAMPLING METHOD
Non- probability sample that is selected based on characteristics of a population
and objective of the study purposive sampling is also known as judgmental, selective or
subjective sampling.

SOURCES OF DATA
Both primary and secondary data are used for this study
1) Primary data
Primary data collected with the help of structured questionnaire by distributing
questionnaire to 100 respondent
2) Secondary data
Secondary data collected from websites, published articles, books and journals
TOOLS FOR DATA COLLECTION
The tool used for data collection is questionnaire

TOOLS FOR ANALYSIS

The statistical tools and techniques used for this study are frequency distribution
table, percentage analysis and chi-square test diagrams used for presentation of data

HYPOTHESES OF THE STUDY

Hypothesis is an idea or explanation for something that is based on known facts
but has not yet been proved. The present study has identified following hypothesis for
testing:

3
TEST 1

1. Null hypothesis (H0): There is no impact of financial literacy on saving habitof

women is independent.
2. .Alternative hypothesis (H1): There is a impact of financial literacy on savinghabit of
women is independent.

LIMITATION OF THE STUDY

1. Association of awareness towards saving and investment with the age, education
for working and non working women were observed no-significant in the present
study.
2. Accuracy of the study based on the information given by the respondent 3.The
result is based on primary and secondary data that has its own limitations.

4
 REVIEW OF LITERATURE

Akshita Arora (2016) conducted a study on Assessment of financial literacy among

working India women; purpose of the study was to assess the financial literacy level of
women. The study Was conducted on 700 working women of urban areas of Rajasthan
among which only 444 women responded. The study concluded that women are better in
terms of financial attitude and behavior as compared to financial knowledge.
Pratisha padmasri Deka (2015) tries to study the relationship between women
empowerment and financial inclusion and financial literacy in her paper financial literacy
and financial inclusion for women empowerment. 6 A study, the study concludes that
financial inclusion and financial literacy is a great step towards achieving women
empowerment.
Zulfiqar.M (2015) conducted a study on women’s economic empowerment through
financial literacy, financial attitude and financial wellbeing. The objective of the study is
to assess the level of financial literacy, financial attitude and financial wellbeing and
economic empowerment of working women. Study found that the financial literacy ,
financial attitude and financial wellbeing are significantly and positively related with
economic empowerment.
Agarwal p, Ansari shamin(2015) The aim of this study is to analyze the investment
decision of saving among respondents, it also studies about the knowledge about the
investment avenue and analyze the investment pattern of both the profession and non
profession women’s. The findings of the study should be more knowledgeable about the
investment avenue since they generally depend on their spouses or other family members.
Due to improper knowledge about the investment alternatives they are not allowed to
take decision.
Sharma. A (2015) The aim of this study to analyze that women investors are inclined in
enhancing their financial knowledge which eventually will lead to their empowerment. It
has been recognized by women that they are unable to take wise financial decisions
because of lack of financial literacy. It is only handful of women who are well aware of
the financial market and are capable of taking investment decisions.
Owusu Nkrumah Eric (2015)The purpose of this research was to assess the level of
financial literacy among teachers with a focus on teachers in the Sekyere East District.

5
The main objective of the study is to assess the financial literacy among teachers.
The findings on the overall financial literacy show that, generally teachers in the District
have inadequate or low financial literacy level with an overall mean correct % score of
53.68.
T.S Shobha & S Shalini (2015)The aim of this study is to analyze the level of awareness
and perception of financial planning among the women and the challenges faced by
women in financial planning. The research topic has been instrumental in identifying the
perception of women towards financial planning clearly identifies the challenges and
their perceptions through their process of financial planning.
Dwivedi Monika & Purohit Harsh (2015)The present paper focuses on the parameters
& analysis are done on why men are more financially literate than women. There is
strong need of financial literacy awareness all across the India, in which rural area
individuals have low level of literacy as well as inclusion which shows that there is
lack of awareness and low access to financial services. Similarly the situation of
women is very concerning in financial literacy as well as in inclusion.
Chijiwani. M (2014) conducted a study of financial literacy among working women in
Pune. The objective of study is to find out the most popular and preferred investment
instruments. The study is conducted on working women in Pune, between age group of
20-40 and who are at least their benefits. Study is empirical based on survey method and
sample was conducted on a random basis. The study found that the most popular
investment avenue among the females interviewed is systematic investment plan.
Mathivathani and Dr. M. velumani (2014) conducted a study on financial literacy
among Rural women in Tamil Nadu; the purpose of the study was to know the level of
financial literacy among women in rural areas of Tamil Nadu and concluded that financial
literacy of marginalized 8 rural women is very low. Study suggests that development of
financial literacy would help the women for making better financial decisions, proper
utilization of financial services and products.

6
 CONCEPTUAL FRAMEWORK

Today's financial world is highly complex when compared with that of a

generation ago. Forty years ago, a simple understanding of how to maintain a current and
savings account at local banks and savings institutions may have been sufficient. Now,
consumers have to differentiate between a wide range of financial products and services,
and providers of those products and services‖. Women constitute almost half the
human race. Education has been recognized as an essential agent of social change and
development in any society and any country. Education considered as a potent
instrument through which processes modernization and social change come into
existence. Education exposes people to new thoughts and ideas and provides necessary
skills hence, to think harmonies development without educating women is impossibility.
Moreover it is rightly said that to educate the women is to educate the whole family. With
rapidly changing financial markets and increasing individual responsibility for being
make informed financial decisions has become of paramount importance. Not only is
financial illiteracy widespread, but it is particularly severe among women. This is
important because women tend to live longer than men; thus their savings needs are
different. Financial education can benefit consumers of all ages and income levels. For
young adults who are just starting their working lives, it can provide basic tools for
budgeting and saving so that expenses and debt can be kept under control. It can help
families acquire the discipline to save for a home of their own and/or for their children’s
education. It can help older workers ensure that they have enough savings for a
comfortable retirement by providing them with the information and skills to make wise
investment choices with both their pension plans and any individual savings plans. It can
help those at lower income levelsto make the most of what they are able to save and help
them avoid the high cost charged for financial transactions by non-financial institutions.
This means that one’s level of financial literacy may affect his/her quality of life
profoundly. It shapes the ability of one to provide for self and the family; invest in his/her
future and the future of his/her children and contribute to the community as a good
citizen. Financial literacy can promote sound personal financial management practices
among which will enable them manage effectively hectic financial times. It includes
understanding how a checking account works, what using a credit card really means, and

7
how to avoid debt. In sum, financial literacy impacts the daily decisions an average
family makes when trying to balance a budget, buy a home, fund their children’s
education and ensure an income at retirement.

FINANCIAL LITERACY
According to the OECD, ―Financial literacy is a combination of awareness,
knowledge, skill, attitude and the behavior necessary to make sound financial decisions
and ultimately achieve individual financial wellbeing‖. Similar to literacy, it can be
viewed as an expanding set of knowledge, skills and strategies, which individuals build
on throughout life, rather than as a fixed quantity. Consumer understanding of financial
concepts and ability to correctly interpret financial data is what is generally referred to as
financial literacy in the field of consumer finance. Other definitions add that Financial
literacy is mainly used in connection with personal finance matters (e.g. real estate,
insurance, investing, saving, tax planning and retirement), including the understanding of
financial concepts like compound interest, risk diversification, advantageous savings
methods, and consumer rights. Studies related to financial literacy in general measure
three specific concepts: 1) Knowledge of fundamental financial concepts. 2) Awareness
of products and services offered by different financial service providers and an
understanding of the risks associated with using these products and services. 3)
Understanding how to manage personal finances or use financial services. According to
the World Bank, the terms the term financial literacy is associated with financial
knowledge, while financial capability is a broader term encompassing behavior and the
interaction of knowledge, skills and attitudes.

IMPORTANCE OF FINANCIAL LITERACY

In today’s scenario, emerging as well as developed economies has started giving
very much focus on the level of financial literacy of their people. The financial
systemplays a very significant role in the development of any nation. Financial ignorance
carries significant costs. Consumers who fail to understand the concept of interest
compounding spend more on transaction fees, run up bigger debts, and incur higher
interest rates on loans (Lusardi and Tufano, 2015; Lusardi and de Bassa Scheresberg,
2013). The consumers need to be financially literate to be able to understand the financial
world and make well informed decisions that will be profitable. The need for financial

8
literacy in a country like India is because of:
1. Increase in Life Expectancy
Now a day, the people become more conscious about their health and
improvements in health care services has increased the life expectancy in India, which
results in a longer time to spend in retirement. This will certainly increases the need of
financial planning such as savings for post-retirement, investment decisions, expanded
insurance plans and provision for unexpected future eventualities. Only knowing the
importance of financial planning is not enough, the individual must know how they can
make their financial planning in better way so that their purposes could be achieved. For
doing better financial planning one must know the basic concepts of money management
like computation of compound interest, risk diversification etc. Hence focusing on the
importance of having minimum level of financial literacy.
2. Innovations in financial products/services and Technological development
Liberalization, development in technology, deregulation and increased level of
financial inclusion provides a wide range of financial products and services delivering
through various channels thus providing consumers more choices to invest their savings.
The available products are more complex in nature thus required some factors to be taken
care of such as interest charged/ received, fees charged and level of risk involved etc. The
greater opportunity available in financial products/services could only be utilized when
one can have the better knowledge and must be aware about it. Since there is a wider
range of options for savings one must have the skills to analyze which option is better for
them and which will help them in accumulating their wealth. The development in
technology has changed the functioning of the financial markets and making the
transactions speedier. Financial literacy helps the individual to make their financial
decisions in more effective and efficient manner thus helping in wealth accumulation.
Moreover, due to technological development now days almost every bank provides their
services with the help of internet banking and also through various mobile apps thus
providing ease in accessing the financial services. But only knowing this is not enough,
one must have the skills and knowledge of using these apps, must have the skills to
identify the authentic apps because these are not free from cyber theft. Hence, financial
literacy becomes important.

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3. Shift in Risk
The risk has been transferred from government and employer both to individuals.
Now, one has to plan their financial security by themselves so that they can secure their
future and may save their money for after retirement period. Every financial products/
services involves certain risk but due to increased complexities in the financial market the
financial products/ services become more risky. Many times people are unaware of the
risk they might have to face due to lack of financial knowledge and skills. Since the risk
is shifted to individual only they have to be more alert in investing their money,
managing their portfolios so that their money can be invested in such a manner that it
help in their wealth accumulation as a whole. Most surveys show that a majority of
workers are unaware of the risks they now have to face, and do not have sufficient
knowledge or skill to manage such risks adequately, even if they are aware of them
(OECD, 2008). So being aware only regarding financial market or product/ services may
not fulfill the purpose, one must have the skills and knowledge to analyze the information
available properly then only the investments in financial market proves to be profitable.
4. Change in the Structure of the Family
Earlier, in joint family the decisions were taken by the head of the family with the
consent of every member and each and every one is accountable for that decision. The
profit earned or the loss suffered was shared among everyone in the family, no one is
solely responsible for profit or accountable for loss. Now days the structure of nuclear
family increases the responsibilities of individuals in respect of spending, saving and
investment. The conception of nuclear family appeared in the early twentieth century.
The concept of Liberalization, Privatization and Globalization opens the greater job
opportunity which increases the mobility of an individual. For grabbing the better
opportunities the individual starts moving from their native places and thus get separated
from their whole family. Since the nuclear family consists of only husband, wife and their
children so the responsibility of decision making is on the two persons only. The
individual is only responsible for their decisions and may have to face consequences of
their choice. Moreover, it becomes very important for parents to plan and invest
adequately for their children’s education because of increase in education costs.
Individuals need to be financially literate so that they can make informed and accountable
decisions.

10
PURPOSE OF FINANCIAL LITERACY
As per RBI guidelines, the Bank has set up Financial Literacy Centers (FLCs)
with the following objectives:
 To facilitate financial inclusion through provision of two essentials i.e. Literacy
and easy access.
 To disseminate information regarding the central bank and general banking
 concepts to various target groups, including schools and college students, women,
rural and urban poor, defense person and senior citizens.
 For effective use of financial services by common man.

BENEFITS OF ENHANCED FINANCIAL LITERACY

 Financially educated consumers are more likely to save their money, compare
financial products and services, and seek and give advice on money matters.
 Access to finance is known to create incentives and environments that promote
desired financial behaviors such as saving, budgeting, or using credit wisely.
 Financial literacy can help to prepare consumers for tough financial times, by
promoting strategies that mitigate risk such as accumulating savings, diversifying
assets, and purchasing insurance.
 Greater financial knowledge, together with behavioral change to apply the lessons
of financial education, reduces the likelihood that consumers at any income level
will fall prey to unscrupulous salespeople and purchase products or services that
aren’t in their best interest.
 For poor and rich alike, financial literacy provides greater control of one’s
financial future, more effective use of financial products and services, and
reduced vulnerability to overzealous retailers or fraudulent schemes.
 Financial literacy also reinforces responsible behaviors such as conscientious tax
payments, timely clearance of bills and avoidance of over-indebtedness etc.

FINANCIAL LITERACY IN INDIA

Financial literacy and financial inclusion are two facets of an efficient economy
and ensures financial stability in a country. Financial inclusion is on priority in our
country and the government has made various strategies on financial inclusion in which

11
various schemes are introduced and awareness campaigns are being held from time to
time. Financial inclusion focuses on quantity where more emphasis is on creating more
bank accounts at zero balance in to order to provide ease in access of basic banking
facilities whereas financial literacy is more about quality where emphasis is on expanding
the knowledge on financial matters and products. Financially literate person are more
likely to explore the financial products/ services which was offered by various banks and
can use them effectively for their benefits. The Reserve Bank of India launched an
initiative in 2007 to establish Financial Literacy and Credit Counseling Centers
throughout the country that offer free financial education and counseling to both urban
and rural populations. In April 2012, Visa released the results of its financial literacy
survey which was conducted between February and April 2012 with 25,500 participants
in 28 countries. The Financial Literacy Survey revealed that Brazil had the highest level
of financial literacy at 50.4% of the respondents followed by Mexico at 47.8%, Australia
– 46.3% and USA with 44%. India was ranked 23rd in the report with only 35% of Indian
respondents as financially literate (Visa’s International Financial Literacy Survey, 2012).
As per the survey conducted by the financial service giant VISA in the year 2012 Indian
women was ranked on 19th with only 36.8% of Indian respondents as financially literate.
Survey was conducted between February and April 2012 with 25,500 participants in 27
countries. The Financial Literacy Survey revealed that women in Brazil had the highest
level of financial literacy at 50.2%, followed by Australia – 48.8%, Mexico at 47.8%, and
USA with 44.6%. Survey revealed that 37.9% women in India followed the household
budget in comparison with Brazil which had the highest rate of 51.8%. Further, India
ranked on 13th with 31.3% women only who save for an emergency among 27 countries.
Another survey conducted Standard & Poor’s among 1, 50,000 adults from 140 countries,
only 14 % Indian adults were able to answer the questions on risk diversification, where
only 51 % understood the concept of compound interest and 56 % were answer correctly
on inflation.

BARRIERS TO FINANCIAL LITERACY AMONG WOMEN

1. Education
One of the biggest problems of our nation is low literacy rate. In 2015, the world
literacy was 86.3%, among which 82.7% of women were literate. The Indian scenario is
bit grim where among 72% literate persons, 65.46% women were literate whereas 82.14

12
% men were literate. Moreover, literacy rate among urban women were 79.01 % whereas
only 57.09 % rural women were literate. Due to lack of basic education the numerical
abilities among women are poor which restrict them to analyze the financial information
properly caused poor financial planning which ultimately affects their saving &
investment decisions and the wellbeing of the family as whole. Moreover, Lack of higher
education among women creates problem in understanding the basic concepts of financial
literacy like computation of compound interest, analysis of inflation, risk & return trade
off and portfolio diversification etc.
2. Social and Cultural
Since ages, this world has been a male dominated world, where men run the
society and women follow him. Specially earning capacity has been the main source of
power for the men to run the society. These women, not only play an important role
socially, but economically also. In India, virtually women are the main spender of the
family whereas the men are the principal earner of the family. Today, we are in the era
where women are at par with men but still the women who were working outside were
not accepted socially, they were treated as irresponsible regarding their in-laws, husband
or their children. Moreover, even when they are working they were not having any right
to use their earned money according to their own choices because in Indian culture the
decision making lies only in the hands of male member of the family. Because of all
these social and culture pressure the women in spite of having knowledge and talent were
not able to prove themselves which ultimately creates problem in their empowerment
socially as well as economically. Although women’s access to financial services has
increased substantially faster in the past 10 years, their ability to exploit this access is
often still limited by the disadvantages they experience because of their gender.
3. What If Factor
Another challenge to women is the "what if' factor. Women's lack of confidence
and knowledge with regard to money management affects their capability to achieve their
financial potential. There is a fear among women that if they ask questions relating to
their financial matters, they will be treated as uneducated or uninformed. In addition to
this there is a fear among them that the process is so complex that they will not
understand well or not able to access the information related to financial matters.
Moreover, they were not consulting any financial adviser who can help them in making
their financial planning in fear that they may charge more fees or may misuse their

13
money or may cheat them. This all create hurdles in gaining the knowledge about the
basic money management.
4. Financial Barriers
Majority of the women are not an earning person in a family. Even if they are
working, they cannot take their financial decisions independently in their family. The
money earned by them were treated as additional money which was only meant for
spending on the leisure of family, hence they cannot use their own money on themselves
as per their choices. Many times the poor financial condition of a family creates a reason
for women to work. In all these conditions women were not free to take their own
financial decisions as per their choices and because of this in spite of having eagerness to
be financial literate they were not able to gain financial knowledge properly, since they
don’t have enough money with themselves to afford to have financial education from the
institutions to get financial knowledge, attend seminars or workshops on financial matters
and could not join various awareness programs on financial literacy etc.

5. Physical Barriers
Sometimes poor infrastructural facilities create a hindrance for women. Due to
lack of private transport and less reliance on public transport services women were not
able to attend the courses specially focused on financial education or not able to attend
the awareness programs on financial education run by the government at different places.
Many times, they were not using banking services on regular basis and find it frustrating
and time & cost consuming activity only because of less availability of good transport
facility. Less availability of financial institutions and financial educations centre is also
one of the physical barriers for women. Moreover, the greater use of computer now a day
also act as a physical barrier for women because they were not very much frequent users
of computers and find it very difficult to operate on the system.

14
 TABLE 4.1
TABLE SHOWING EDUCATIONAL QUALIFICATION

Educational level No of respondents % of

respondents

SSLC 15 15

Plus two 18 18

Graduate 40 40

Post graduate 27 27

Total 100 100

INTERPRETATION:
From the above table it is understood that 15% of respondents belongs to SSLC and 18%
of respondents belongs to plus two. And 40% of respondents belong to graduate. And
27% belong to the group post graduate.

45
40
40
35
30 27
25
20 18
15
15
10
5
0
SSLC Plus two Graduate Post graduate

15
 TABLE 4.2
TABLE SHOWING THE EMPLOYMENT STATUS

Professional women Non professional

Employment No of Percentage of No of Percentage

status of the respondents respondents respondents of respondents
respondents
Permanent 72 72 0 0

Temporary 28 28 100 100

Self employed 0 0 0 0

Retired 0 0 0 0
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that 72% of respondents belongs to permanent and 28%
of respondents belongs to temporary at professional women. And the nonprofessional
women has 100% of temporary employment status.
CHART 4.2
CHART SHOWING THE EMPLOYMENT STATUS

120
100
100

80 72

60
Professional women
40 Nonprofessional women
28

20
0 0 0 0 0
0
Permanent Temporary Self Retired
employed

16
 TABLE 4.3
TABLE SHOWING THE INCOME PER MONTH
Professional women Nonprofessional women
Income No of Percentage of No of Percentage of
respondents respondents respondents respondents

Less than 25000 0 100 100

25000-50000 18 18 0 0
50000 -75000 12 12 0 0
75000-100000 31 31 0 0
Above-100000 38 38 0 0
Total 100 100 100 100

INTERPRETATION:
Interpretation; From the above table it is clear that annual income of respondents are
belongs to professionals at 18% of income level 25000-50000. And 12 % are belongs to
50000-75000. And 31% are belongs to 75000- 100000. And 38% of respondents are
belongs to above 100000. The non-professional women are majority participated from the
group 25000 .
CHART 4.3
CHART SHOWING THE INCOME PER MONTH

120

100

80

60
38
40 31 Professional women
18
20 12 Nonprofessional women
0
0

17
 TABLE 4.4
TABLE SHOWING DAY-TO-DAY DECISIONS ABOUT MONEY IN
HOUSE
Professional women Nonprofessional-women

Mode of No of Percentage of No of Percentage of

response respondents respondents respondents respondents

Yourself 43 43 25 25
Partner 11 11 15 15
You and 46 46 60 60
your-partner
others 0 0 0 0
Total 100 100 100 100

INTERPRETATION
Interpretation : From above the table it is clear that 46% of respondents are belongs to
decision taken by You and your partner in professional women. And 43% of
respondents in yourself And 11% belongs decision taken by partner at professional
women. In addition nonprofessional category are majority participated in decision
making You and your partner.
CHART 4.4
CHART SHOWING DAY-TO-DAY DECISIONS ABOUT MONEY IN HOUSE

70 60
60
50 43 46
40
30 25
20 15
11
Professional women
10 0 0
0 Nonprofessional-women

18
 TABLE 4.5
TABLE SHOWING SOURCE OF INFORMATION
Professional women Nonprofessional women

Source of No of Percentage of No of Percentage of

information respondents respondents respondents respondents

Advertisement 12 12 45 45

Financial 74 74 18 18
literacy class

Friends and 3 3 37 37
relatives

General 11 11 0 0
advice

Total 100 100 100 100

INTERPRETATION:
From the above table it understood that professionals that are shows 74% of respondent
get information from financial literacy class. And 12% of respondents get information
from advertisement. Only 3% of respondents from friends and relatives. The
nonprofessional women are get 45% of information on advertisement. And 24% of
information from friends and relatives.
CHART 4.5
CHART SHOWING THE SOURCE OF INFORMATION

80 74
70
60
50 45
37
40
30 18
20 12 11 Professional women
10 3 0
0
Nonprofessional
women

19
 TABLE 4.6
TABLE SHOWING OPINION ABOUT BEST INVESTMENT
OPTION
Scheme No of respondents % of respondents

Fixed deposit 17 17

Mutual fund 25 25

Life insurance policy 46 46

Real estate 12 12

Total 100 100

INTERPRETATION
From the above table it is clear that 17% of women invested in fixed deposit. 25% in
mutual fund and more prefer on life insurance policy at 46%. And 12% are responded in
real estate.
CHART 4.6
CHART SHOWING OPINION ABOUT BEST INVESTMENT
OPTION
50 46
45
40
35
30 25
25
20 17
15 12
10
5
0
Fixed deposit Mutual fund Life insurance Real estate
policy

20
 TABLE 4.7
TABLE SHOWING SHARING FINANCIAL INFORMATION FOR
THEDEVELOPMENT OF OTHER WOMEN
Professional Nonprofessional

Mode of No of Percentage No of Percentage

response respondents respondents
of of
respondents respondents

Yes 89 89 94 94

No 11 11 6 6
Total 100 100 100 100

INTERPRETATION:
From the above table it understood that 89% of respondents in professionals are share
information to other women. And 11% of respondent are not share the information. And
94% of nonprofessionals are share financial information for the development of other
women. And 6% are not share
CHART 4.7
CHART SHOWING SHARING FINANCIAL INFORMATION FOR THE
DEVELOPMENT OF OTHER WOMEN
100 94
89
90
80
70
60
50 YES
40 NO
30
20
11
10 6

0
Professional Nonprofessional

21
 TABLE 4.8
TABLE SHOWING INVESTMENT IN STOCK MARKET

Professional Nonprofessional

Mode of response No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Yes 34 34 22 22

No 66 66 78 78
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that shows 34% of respondents are belongs to Yes and
66% of respondents are belongs to No. and 22% of non professional womens are belongs
to Yes and 78% belongs to No.
CHART 4.8
CHART SHOWING INVESTMENT IN STOCK MARKET

90
78
80
70 66

60
50
Professional
40 34
Nonprofessional
30
22
20
10
0
Yes No

22
 TABLE 4.8 (a)
TABLE SHOWING OBJECTIVE BEHIND INVEST IN STOCK
MARKET

Professional Nonprofessional
Objectives No of Percentage No of Percentage
respondents of respondents of
respondents respondents
Future security 26 26 49 49
Expected return 74 74 51 51
Liquidity 0 0 0 0
Capital gain 0 0 0 0

Tax saving 0 0 0 0

Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that shows 34% of respondents are belongs to Yes and
66% of respondents are belongs to No. and 22% of non professional women’s are
belongs to Yes and 78% belongs to No.
CHART 4.8 (a)
CHART SHOWING OBJECTIVE BEHIND INVEST IN STOCKMARKET

80 74
70
60 51
49
50
40
Professional
30 26
Nonprofessional
20
10
0 0 0 0 0 0
0
Future Expected Liquidity Capital Tax saving
security return gain

23
 TABLE 4.9
TABLE SHOWING INVESTMENT PATTERN OF RESPONDENTS

Professional Nonprofessional

Pattern No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Short term 5 5 52 52

Long term 95 95 48 48

Total 65 100 100 100

INTERPRETATION:
The above table it is understood that 95% of respondents in professionals are prefer long
term investment. Only 5 % are belongs to short term investment. The nonprofessional
women are responded at 52% of short term and 48% of long term.

CHART 4.9
CHART SHOWING INVESTMENT PATTERN OF RESPONDENTS

100 95
90
80
70
60 52
48
50 Professional
40 Nonprofessional
30
20
10 5
0
Short term Long term

24
 TABLE 4.10
TABLE SHOWING OPINION ABOUT NECESSITY OF FINANCIAL
LITERACY PROGRAM FROM GOVERNMENT

Professional Nonprofessional

Pattern No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Yes 5 5 2 2

No 95 95 98 98
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that respondents opinion shows that 95% of respondents
in professionals are belongs to No and 5% of respondents are Yes. And the
nonprofessionals are 98% respondents to No and 2% of respondents are Yes.

CHART 4.10
CHART SHOWING OPINION ABOUT NECESSITY OF FINANCIAL
LITERACY PROGRAM FROM GOVERNMENT
120
95 98
100

80

60 Professional

40 Nonprofessional

20
5 2
0
Yes No

25
 TABLE 4.11
TABLE SHOWING FACTORS FOR FINANCIAL EXCLUSION OF
WOMEN
Professional Nonprofessional
Options No of Percentage No of Percentage
respondents of respondents of
respondents respondents

Psychological 77 77 74 74
factor

Cultural and religion 6 6 3 3

Educational 15 15 23 23
Geographical 2 2 0 0
Total 100 100 100 100

INTERPRETATION:
From the Above table it is clear that shows professional are responded at 77% of
psychological factor and 15% respondents belongs to educational.2% of respondents
belongs to geographical factor. At 74% of respondents are belongs to psychological
factor. And 23% of nonprofessional are responded at educational factor.
CHART 4.11
CHART SHOWING FACTORS FOR FINANCIAL EXCLUSION OF WOMEN
90
80 77
74
70
60
50
40 Professional
30 23 Nonprofessional
20 15
10 6
3 2 0
0
Psychological Cultural and Educational Geographical
factor religion

26
 TABLE 4.12
TABLE SHOWING RESPONDENTS WHO TAKE LOAN

Professional Nonprofessional

Mode of response No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Yes 2 2 74 74

No 98 98 26 26

Total 100 100 100 100

INTERPRETATION:
From the above table it is clear shows that 2% of respondents are belongs to getting loan.
And 98% of respondents are not take the loan. The nonprofessional 74% of respondents
are take a loan and 26% of respondents not take the loan.

CHART 4.12
CHART SHOWING RESPONDENTS WHO TAKE LOAN
120

98
100

80 74

60 Professional
Nonprofessional
40
26
20
2
0
Yes No

27
 TABLE 4.12 (a)
TABLE SHOWING DIFFICULTIES IN GETTING LOAN FROM
BANK

Professional Nonprofessional

Pattern No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Yes 14 14 49 49

No 86 86 51 51
Total 100 100 100 100

INTERPRETATION:
From the above table it understood that 86% of respondents are not face any difficulties
in getting loan. And 14% respondents are face difficulties in getting loan. And
nonprofessionals are 51% respondents are no difficulties in getting loan.
CHART 4.12(a)
CHART SHOWING DIFFICULTIES IN GETTING LOAN FROM BANK

100
90 86

80
70
60
49 51
50 Professional
40 Nonprofessional
30
20 14
10
0
yes no

28
 TABLE 4.13
TABLE SHOWING FACTORS INFLUENCING SAVINGS HABIT OF
RESPONDENT
Professional women Nonprofessional women

Options No of Percentage No of Percentag

respondents of respondents eof
respondents respondents
Pay off debt 23 23 11 11
Marriage 32 32 31 31
Construction 37 37 46 46
of house
others 23 23 12 12
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that showing at 37% of respondents are belongs to
construction of house. And 32% of investors opinioned marriage and 23% of respondents
are pay off debt and others. The nonprofessionals are more responded to construction of
house at 46%.
CHART 4.13
CHART SHOWING FACTORS INFLUENCING SAVINGS HABIT
OF RESPONDENT
50 46
45 37
40 32 31
35
30 23 23
25
20 11 12
15
10 Professional women
5
0
Nonprofessional
women

29
 TABLE 4.14
TABLE SHOWING ARE YOU A SHARE HOLDER

Professional Nonprofessional

Mode of No of Percentage of No of Percentage of

response respondents respondents respondents respondents

Yes 57 57 31 31

No 43 43 69 69
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that respondents showing at 57% of respondents belongs
to Yes in to professional category and 43% of respond No at non professionals are
respond 69% of No . 31% of respondents belongs to Yes.

CHART 4.14
SHOWING ARE YOU A SHAREHOLDER

80
69
70

60 57

50
43
40 Professional
31
30 Nonprofessional

20

10

0
Yes No

30
 TABLE 4.14 (a)
TABLE SHOWS OPINION ABOUT EPS ARE BENEFICIAL OR NOT

Professional Nonprofessional

Mode of response No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Yes 66 66 37 37

No 34 34 63 63

Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that 66% of respondents belongs to the opinion yes
and 34% of respondents at No. and the nonprofessional responded at 63% of No. and
37% of yes.
CHART 4.14(a)
CHART SHOWS OPINION ABOUT EPS ARE BENEFICIAL OR NOT

70 66
63
60

50

40 37
34
Professional
30
Nonprofessional
20

10

0
Yes No

31
 TABLE 4.15
TABLE SHOWING DURATION OF TIME SPENT FOR
INVESTMENTDECISION
Mode of Professional Nonprofessional
respondent
Pattern No of Percentage No of Percentag
respondents of respondents eof
respondents respondents
Quickly 28 28 15 15
With few days 49 49 26 26
More than a week 23 23 58 58
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that 28% of respondents belongs to quickly decision
maker. And 49% of respondents are take decision about with few days. And 23% of
respondents are belongs to more than a week. And the nonprofessionals are responded at
38% of more than a week.
CHART 4.15
CHART SHOWING DURATION OF TIME SPENT FOR INVESTMENT
DECISION
70
58
60
49
50
40
28 26 Professional
30 23
20 15 Nonprofessional

10
0
Quickly With few days More than a
week

32
 TABLE 4.16
TABLE SHOWING AWARENSS ABOUT FINANCIAL SCHEMES

Professional Nonprofessional
Mode of respondent No of Percentage No of Percentage
respondents of respondents of
respondents respondents

Annapurna scheme 38 38 31 31

Sthree shakthi package 29 29 23 23

for women
Dena shakthi scheme 14 14 15 15
Mudra yojana scheme 18 18 31 31

Total 100 100 100 100

INTERPRETATION:
The above table it is clear that shows at 38% f respondents are aware about the
Annapurna scheme. and 29% are belongs to sthree sakthi package scheme. And 14% of
respondents are belongs to the Dena shakthi scheme. And the nonprofessionals are
responded belongs to mainly two schemes. At 31% of Annapurna scheme. And 31% of
mudra yogana scheme
CHART 4.16
CHART SHOWING AWARENESS ABOUT FINANCIAL SCHEMES
40 38
35 31 31
29
30
25 23
20 18
14 15
15
Professional
10
5 Nonprofessional
0
Annapurna Sthree Dena Mudra
scheme shakthi shakthi yojana
package for scheme scheme
women

33
 TABLE 4.17
TABLE SHOWING PURPOSE OF LIFE INSURANCE POLICY OF
RESPONDENT
Professional Nonprofessional

Mode of response No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Tax saving 31 31 0 0

Insurance cover 31 31 38 38
For keeping money 38 38 62 62
safe

Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that shows at 31% of professionals are respondents
belongs to the tax planning purpose. And another 31% are insurance cover. At the
nonprofessionals are 62% of respondents are belongs to keeping money safe.
CHART 4.17
CHART SHOWING PURPOSE OF LIFE INSURANCE POLICY

70
62
60
50
38 38
40
31 31
30 Professional

20 Non professional

10
0
0
Tax saving Insurance cover For keeping
money safe

34
 TABLE 4.18
TABLE SHOWING FINANCIAL LITERACY IMPROVES
STANDARD OFLIVING OF WOMEN

Professional Nonprofessional

Mode of respondent No of Percentag No of Percentage

respondents eof respondents of
respondents respondents

Strongly agree 100 100 92 92

Agree 0 0 8 8
Neutral 0 0 0 0

Disagree 0 0 0 0
Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that shows 100% of respondents are belongs to strongly
agree the standard of financial literacy. And the nonprofessionals are 92% strongly agree
and 8% are agree the statement.
CHART 4.18
CHART SHOWS FINANCIAL LITERACY IMPROVESSTANDARD OF LIVING
OF WOMEN

120
100
100 92

80

60
Professional
40 Non professional
20 8
0 0 0 0 0
0
Strongly Agree Neutral Disagree
agree

35
 . TABLE 4.19
TABLE SHOWING TAX PLANNING BENEFIT OF RESPONDENTS

Professional Nonprofessional

Mode of No of Percentage No of Percentage

Respondents respondents of respondents of
respondents respondents

Yes 100 100 0 0

No 0 0 100 100

Total 100 100 100 100

INTERPRETATION:
From the above table it is clear that shows 100% of professionals are agreed to the tax
planning benefits. And the nonprofessional women’s are not get the benefits.

CHART 4.19
CHART SHOWING TAX PLANNING BENEFIT OF RESPONDENTS

120
100
100

80

60 Professional
Nonprofessional
40

20
0
0
Yes No

36
 TABLE 4.20
TABLE SHOWING OPINION ABOUT STATEMENT YOU ARE
“FINANCIAL LITERATE”
Professional Nonprofessional

Mode of respondent No of Percentage No of Percentage

respondents of respondents of
respondents respondents

Strongly agree 85 85 77 77

Agree 15 15 15 15
Neutral 0 0 0 0
Disagree 0 0 8 8
Total 100 100 100 100

INTERPRETATION:
From the above table it understood that shows 85% of respondents opinioned that theyare
strongly agree the statement of financially literate. And 15% respondents belongs to
agree. And nonprofessional are strongly agreed in 77% .8% disagree statement.
CHART 4.20
CHART SHOWING OPINION ABOUT STATEMENT YOU ARE“FINANCIAL
LITERATE”
90 85
80 77

70
60
50
40 Professional
30 Nonprofessional
20 15 15
8
10
0 0 0
0
Strongly Agree Neutral Disagree
agree

37
TEST OF SIGNIFICANT RELATIONSHIP BETWEEN EDUCATIONAL LEVEL
AND BEST INVESTMENT OPTION

Testing of Hypothesis
HO=THERE IS NO IMPACT ON FINANCIAL LITERACY ON SAVING HABIT OF
WOMEN INDEPENDENT.
H1=THERE IS IMPACT ON OF FINANCIAL LITERACY ON SAVING HABIT OF
WOMEN INDEPENDENT =
CHI-SQAURE TEST=
Education and Investment option
Fixed Mutual fund Life Real total
deposit insurance estate
SSLC 2 7 6 0 15
Plus two 4 8 4 2 18
Graduate 5 10 24 1 40
postgraduate 6 0 12 9 27
total 17 25 46 12 100

Observed Expected (0-E)2 O-E2/E

frequency frequency
2 2.55 0.3025 0.11
7 3.75 10.56 2.81
6 6.9 0.81 0.11
0 1.8 3.24 1.8
4 3.06 9.36 3.05
8 4.5 12.25 2.72
4 8.28 18.31 2.21
2 2.16 0.02 0.01
5 6.8 3.24 0.47
10 10 0 0
24 18.4 31.36 1.70

38
 1 4.8 14.44 3.008
6 4.59 1.98 0.43
0 6.75 45.56 6.74
12 12.42 0.17 0.01
9 3.24 33.17 10.23

Degree of freedom
=(c-1)(r-1)
(4-1)(4-1)
=9
Level of significance=0.05
Hence the table value=16.919
Calculated value greater than table value.
Reject the null hypothesis. accept the alternative hypothesis.
There is impact of financial literacy on saving habit of women independent.

39
 FINDINGS OF THE STUDY

 In this study find that the professional and nonprofessional women’s are aware
about saving and investment.
 From this study found that majority of respondents are financially literate.
 From this study it is found that The financial literacy classes are most influenced
factor among financial decision of professional women. In addition friends ,
relatives and advertisement are most influenced factor in nonprofessional.
 In this study find that almost professional women’s prefer long term investment
pattern and most of the nonprofessional women’s prefer invested in short tern
investments.
 Majority of both respondents are agreed that they are share financial
information for the development of the women’s.
 Almost respondents are not invest in stock market. Compared with
nonprofessional women’s some of professional women’s are invested in stock
market. Because of the expected huge return from their investment.
 From this study it is found that the respondents are not receiving any financial
literacy programs from the government.
 Among the respondents majority have Temporary job. Least number of people
have permanent job.
 In this study found the reason for financial exclusion of women’s. The main
reasons are psychological and educational factors.
 In this study most of nonprofessional women’s are take loan. compared with
professional women’s. but they are not faced any difficulties in get a loan.
 From the above study it is clear about the awareness of financial literacy are
improving the standard of living women.
 The above study we find the reason for financial exclusion of women. The
main reasons are psychological and educational factors.
 In this study most of nonprofessionals are take a loan. But they are no face any
difficulties in get a loan.

40
 SUGGESTIONS

 More awareness programs should be created at different levels especially in rural

and regionally backward areas regarding the basic banking services and their
benefits.
 Conduct awareness programs relating to improve saving habit.
 The government should ensure the reach of their various promotional programslike
Jan Dhan Yojna specifically to women especially living in rural and tribal areas.
 The government may form the team of women only who can help the women in
those areas where women cannot go outside their homes to get any type of
information; so that they can also know the basic money management concepts and
its importance as well as how these can help in their own financial condition and
family too.
 Matters related to basic finance and money related issues must be talk about
 among families, especially to female children so that they must understand the
basic concepts of financial literacy and its importance in their future thus helping
them understanding the actual meaning of empowerment since their childhood.
 Conduct awareness programs to improve self-confidence of women.
 Women must have to inculcate the habit of financial planning as soon as they
started earning and must be clear about their long term financial goal so that
 they can utilize their earned money in more effective manner to secure their future
and after retirement period thus ultimately helps in achieving theirfinancial goal.
 Women must maintain a financial diary in which they can write down their
weekly or monthly expenses and try to control their expenses or try to spend
wisely; so that they can maintain regular savings which ultimately help themand
their families in uncertain future expenditures.

41
 CONCLUSION

Financial literacy among women is very low. It enables people to understand what
is needed to achieve a lifestyle that is financially balanced, sustainable, ethical and
responsible. It is directly related to the wellbeing of an individual and society as a whole.
Financial literacy would help the women in making better financial decisions and helps in
the utilization of financial products and services. It is very encouraging to see that today
women are at par with men in all fields but when it comes to financial decision-making,
they are still dependent on the male members of their family. In our country, where
poverty and unemployment are the major problems, it is very crucial to financially
literate the women to fuel the engine of growth by providing opportunities to women to
contribute to economic growth. While women in developed countries proved to be better
financial planners relatively, it is the women of emerging economies who have to become
literate when it comes to money management issues. Though various initiatives were
taken by different organizations to boost the financial literacy but still there is a need of
more awareness programs which may include workshops, seminars, and financial
management courses at different levels to get more financial knowledge regarding the
banking services and their benefits one can attend

42
BIBLIOGRAPHY

43
 BIBILIOGRAPHY
REFERENCE:
 Arthur B. Kennickell, Martha starr-Mccluer and Annika E. Sunden, 1997, Saving
and Financial Planning : Some Findings from A focus group. Financial
Counseling and Planning, Volume 8(1), 1997.
 Basu S, (2005), Financial literacy and the life cycle, Washington, DC: Financial
Planning Association.
 Bajtelsmit VL, Bernasek A. Why do women invest differently than men?,
Financial Counseling and Planning, 1996; 7: 1-10. •
 Avery R, Kennickell A. Household saving in the US, Review of Income and
Wealth, 1991; 37(4): 409-432.
 Braunstein, Sandra, and Carolyn Welch. 2002. ―Financial Literacy: An
Overview of Practice, Research, and Policy.‖ Federal Reserve Bulletin November:
445–457
 Deacon, R. E. & Firebaugh, F. M. (1988 or 1975). Home management: Context
and concepts. Boston: Houghton Mifflin.
 Jump$tart Coalition. 2004. ―Making the Case for Financial Literacy, 2004.‖
http://www.jumpstartcoalition.com/upload/ACF2F0E.doc. •
 Lauren Cohen, Loyalty based Portfolio choice, 2009, Review of Financial Studies,
22, 1213 – 1245. •
 Lusardi, Annamaria and Olivia Mitchell (2008), ―Planning and Financial
 Literacy: How Do women fare? American Economic Review 98 (February)
413-417
 http://en.wikipedia.org/wiki/Clause_49
 http://en.wikipedia.org/wiki/Financial_literacy
 http://en.wikipedia.org/wiki/Gold_as_an_investment
 http://invsetor.sebi.gov.in/faq/Public%20Issue.html http://marketpublishers.com
 http://securityinvestments.in/Static/FAQ.aspx#link5
 http://www.business- standard.com/india/news/india-5th-best-country for-real-
estate investment- report/108944/on 193

44
 http://www.equitymaster.com/5MinWrapUp/detail.asp? date=06/15/2011&stor
y=3 &title=Is-India-headed-into-a-recession
 http;//www.financialexpress.com/news/financial-literacy-india-isworlds-
no.2/737508/1
 http://www.investinindia.com/why-invest-india
 http://www.nber.org/papers/w15266,August2009.
 http://www.rediff.com/money/2006/jan/17tax.htm
 Huberman, Gur, 2001,” Familiarity breeds investment‖, Review of Financial
Studies 14, 659—680.

45
APPENDIX

46
 QUESTIONNARE
Name (Optional):
Age:
1. Educational qualification
 SSLC
 Plus two
 Graduate
 Post graduate
 Professional
2. Employment status
 Self employed
 Retired
 Permananent
 Temporary
3. Income per month
 Less than 25000
 25000-50000
 50000-75000
 75000-100000
 Above 100000
4. Who is responsible for the day to day decisions about money in your house
hold?
 Yourself
 Partner
 You and your partner
 Others
5. Which source of information mostly influenced your financial Decision?
 Advertisement
 Financial literacy class
 Friends and Relatives

47
 General advice
 others

6. Which one is the best investment option for you?

 Fixed deposit
 Mutual fund
 Real estate
 Life insurance policy
 Stock

7. Do you share financial information for the development of other women

 Yes

 No

8. Do you invest in stock market

 Yes

 No
(a) What are the objective behind invest in stock market
 Future security
 Expected return
 Liquidity
 Capital gain
 Tax saving

9. What is your investment pattern

 Short term
 Long term
10. Do you need any financial literacy program from the part of government
 Yes
 No

48
11. What are the main reason for financial exclusion of women
 Psychological factors
 Cultural and religion factors
 Educational factors
 Geographical reason

12. Do you get a loan

 Yes
 No
(a) Do you face any difficulties in getting loan from bank

 Yes

 No

13. What is the most important factor that influence your saving habit
 Pay off debt
 Marriage
 Construction of house
 Others
14. Are you a shareholder ?
 Yes
 No
(a) If yes the EPS is beneficial or not ?

 Yes

 No
15. Specify the time you normally spent for taking a decision to invest?
 Quickly
 With few days
 More than a week

49
16. Which of these financial schemes are more aware to you?

 Annapurna scheme

 Stree Shakti package for women

 Dena Shakti scheme

 Mudra yojana scheme

17. Do you have own life insurance policy and your purpose of having that?
 Tax saving
 Insurance cover
 For keeping money safe
18. Financial literacy improves standard of living women?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
19. Did you get the benefit of Tax Planning?
 Yes
 No
20. Do you consider yourself as financially literate?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree

50