Black Book Project

CHAPTER - I
INTRODUCTION
Financial planning is the process of taking a comprehensive look at their financial

situation and building a specific financial plan to reach their goals. As a result,
financial planning often delves into multiple areas of finance, including investing,
taxes, savings, retirement, your estate, insurance and more. As you might expect, a
financial planner typically offers financial planning services, though financial
advisors often double as planners themselves.
Meaning of Financial Planning

Financial planning is the practice of putting together a plan for their future,
specifically around how they will manage their finances and prepare for all the
potential costs and issues that may arise. The process involves evaluating the current
financial situation, identifying goals, and then developing and implementing relevant
recommendations.
Financial planning is holistic and broad, and it can encompass a variety of services,
which we detail below. Rather than focusing on a single aspect of their finances, it
views clients as real people with a variety of goals and responsibilities. It then
addresses several financial realities to figure out how to best enable people to make
the most of their lives.
Financial planning is not the same as asset management. Asset management generally
refers to managing investments for a client. This includes choosing the stocks, bonds,
mutual funds, and other investments in which a client should invest their money.
However, the same professionals who offer asset management services can also offer
financial planning. A financial planner is effectively one type of financial advisor.
Advisors can earn certifications focused on financial planning, the most notable of
which is certified financial planner (CFP)
Understanding the Different Types of Financial Planning
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A financial planner may offer a variety of services. These services will often be
considered in concert with one another. This helps the planner put together an overall
plan that considers all aspects of your current situation and future aspirations.
Here are eight common services that are generally offered as part of financial planning:
1. Tax planning: Financial planners often help clients address certain tax issues. They
can also figure out how to maximize their tax refunds and minimize their tax liability.
Certain advisors may also be able to help them with preparing their taxes and filing
their annual taxes.
2. Estate planning: Estate planning seeks to make things a bit easier for the loved ones
after they die. Preparing a will may be part of a financial planners’ services. Estate
planning also helps prepare for any estate tax which may be subject to.
3. Retirement planning: They presumably want to stop working someday. Retirement

planning services help prepare for that day. They ensure that they have saved enough
money to live the lifestyle they want in retirement.
4. Philanthropic planning: It is always nice to give something to people who need it or

help a cause close to their heart. Financial planning can help them ensure that they are
doing it efficiently and getting all the tax benefits that are eligible for.
5. Education funding planning: If they have children or other dependents who wish to
pursue a college degree, may want to help them to pay for it. Financial planning can
help make sure you are able to do so.
6. Investment planning: Though financial planning does not include the actual
management of their assets; it can still help with your investment portfolio by
mapping out how much they should be investing and in which types of investments.
7. Insurance planning: A financial planner can help one evaluate their insurance needs.
Some financial planners are also licensed insurance agents and can sell their insurance
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themselves. However, they will likely earn a commission, which would create a
conflict of interest.
8. Budgeting: This is perhaps the cornerstone of financial planning. A planner can

make sure that they are spending the right amount given their income and can also
make sure that they are not going into debt.
The exact services offered by a financial planner will vary based on the individual.
Make sure the financial planner they choose offers the services you need.
Meaning of Children Education Plans and their working

A child education plan is an insurance strategy that enables one to safeguard their
savings and the future of their child. This plan gives them the choice of investing their
money and then using it all at once or in instalments to pay for their child’s education.
The insurance component is intended to shield the child against unfavourable

occurrences like the death of a parent by providing a set annual pay-out if such an
event occurs.
The purpose of the investment component is to accumulate funds through investing in

a variety of products in order to meet the child’s financial needs.
They must choose the desired coverage amount to submit their application to the
bank, and they will inform you of the computed premium depending on the selected
cover amount.
The next step is to choose between a lump sum payment and ongoing instalments.
Many insurers provide child education plans, which can relieve parents of a great deal
of concern by taking care of the necessary savings. No parent wants to deny their
child the chance to pursue their ambitions by taking advantage of the finest chances
that quality education has to offer and making an early investment in a child’s
education plan guarantees that they will not have to.
Benefits of financial planning

There are numerous practical benefits to financial planning. It helps you to:
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Increase your savings
It may be possible to save money without having a financial plan. But it may not be
the most efficient way to go about it. When they create a financial plan, to get a good
deal of insight into their income and expenses. They can track and cut down their
costs consciously. This automatically increases their savings in the long run.
Enjoy a better standard of living

Most people assume that they would have to sacrifice their standard of living if their
monthly bills and EMI repayments are to be addressed. On the contrary, with a good
financial plan, they would not need to compromise their lifestyle. It is possible to
achieve their goals while living in relative comfort.
Be prepared for emergencies

Creating an emergency fund is a critical aspect of financial planning. Here, they need
to ensure that they have a fund that is equal to at least 6 months of your monthly
salary. This way, they do not have to worry about procuring funds in case of a family
emergency or a job loss. The emergency fund can help you pay for varied expenses on
time.
Attain peace of mind

With adequate funds at hand, they can cover their monthly expenses, invest for their
future goals, and splurge a little for themselves and family, without worry. Financial
planning helps them manage their money efficiently and enjoy peace of mind. Do not
worry if they have not yet reached this stage. If they are on the path of financial
planning, the destination of financial peace is not very far away.
Financial planning for life goals

The importance of personal financial planning in India cannot be ignored. It is not just
about increasing their savings and reducing their expenses. Financial planning is a lot
more than that. This includes achieving their future goals, such as:
Wealth creation
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The rise in the price of everyday items means that if they want to maintain or increase
their current standard of living in the future, they need to create a sufficient corpus of
wealth. This may also want to purchase a better car or a new house in the future. All
this requires money, and it merely highlights the importance of wealth creation. It is
possible to achieve these goals by carefully investing their money in the right
avenues. Equity mutual funds can be a suitable option for long term goals. These
funds could help the investor to accumulate wealth in the long run.
Retirement planning
Their retirement may be 25 or 30 years in the future. But that does not mean that they
plan for it when you retire. To enjoy a happy and comfortable retired life, they need to
start building their safety net right now. Planning at an early stage in life can help
secure their future against financial uncertainties. Also, they invest lesser amounts if
they start early and gain from the power of compounding which helps to build a large
enough corpus over the 25–30-year period.
Child’s education
Education has become very expensive, not only in India but across the world. And in
future, this cost is only going to rise. This is why it is necessary to start planning from
the moment their child is born. Calculate how much they wish to earn and start
investing in long-term investment avenues that can help them achieve this. They can
approach a financial advisor for advice if they are not sure how to proceed further.
Saving tax
Every year, they are probably paying a substantial amount as tax. But they can now
lower their tax outgo legally. The Indian Income Tax Act provides various provisions
for people to reduce their tax outgo. By planning their taxes in advance, they can
identify the best avenues to invest their money and reduce their taxable income.
Mutual funds provide a tax efficient avenue for investing for their life goals.
Need for financial planning for children’s education

There is an old saying in Tamil which challenges one to "Build a House and Marry off
a Child" - a financial implication that starts when the parents are in their 40s. Today,
the challenge starts as early as when the child is in preschool; when the parents are
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still
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in their twenties or early thirties. Never in India's history has 'quality' education been
so expensive and daunting.
The Traditional Challenges

The traditional avenues that any parent is concerned about, while planning for
expenses relating to children, are for their higher education (college and PG
programs) and their marriage. With inflation hovering in double digits, the expected
cost of higher studies for their children, leads to a mental paralysis for any parent. A
quick calculation in a spreadsheet shows, that based on today's cost of '4 lakh for an
engineering education, one requires close to '22.25 lakh in 18 years at 10% inflation.
Will a young couple have the wherewithal to save for this?
Indian parents are deeply stressed over the rise in gold prices. With a sovereign of
gold costing around '23,000, gifting one's daughter 100 sovereigns of gold for her
marriage is more of a pipe dream for many parents. Also consider that some of the
'best' caterers are charging upwards of '125 per plate for marriage functions. Is it the
end of 3-day marriage celebrations with a gathering of 1000 people (for the middle
class, at least)?
The Modern Challenges

The modern challenges facing today's parents start even earlier. Just the LKG
admissions cost anywhere from '25,000 to '50,000 in an 'average' school in a Class B
city. Metro schools cost more and so do 'premium' schools.
Added to the above 'basic' needs, there are the other needs related to social and peer
pressure facing children that parents feel they need to satisfy. It could be a laptop
requirement from the school for students of Class 5 and above. Or it could be that
foreign vacation that the parent cannot afford, which is routinely indulged in by his
son's classmates.
It could be that their daughter wants an Apple iPhone4s, because all the 'cool' girls in
her Class XI carry smart phones. While they update their Facebook page every
minute, she must wait to get home to her PC to update her Facebook page.
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Avenues of Investment for Children
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None of the investment avenues in the market today are specifically designed for
children. However, they can make use of them for their children based on their
intentions. The exception to this rule is some of the protection plans from insurance
companies which have special features to protect our children (and spouse) in their
absence.
Savings Vs Investment
First, we need to understand the difference between savings and investments. Yes,
they are different!
Savings is what they do for the short term (maximum of 3 years). Typically, they do
not want the value of the savings to go down, come what may; they cannot buy half a
bicycle, can you? The other reason for saving may be to get a regular stream of
income (interest). The objective of savings is not to increase the value of the
investment (a bank deposit of '1 lakh remains the same) but to ensure that it exists
after the intended period.
Investment is primarily done to increase its value. This is done for the long term -
typically a minimum of 5 years (will you start a business to sell it in one year?). Since
the duration of the investment is long, one does not bother with short-term
fluctuations in returns or loss of invested value if the path taken by the investment is
as per plan. Investment is not done for regular steady return but for capital
appreciation. For example, money invested in the shares of a bank (in contrast to the
deposit made in the same bank) may not give a steady dividend but the value of the
share itself will grow.
Factors to Consider while Investing/Saving

Savings and investing are not just about returns. So, it is not necessary that one
plan/product that gives 25% returns is better than the one that gives only 10%. All of
us have seen dozens of 'finance' companies promising very high returns and then
running away with their money.
Even in returns we must look at two things; the regular income that the avenue will
give and the capital appreciation that it can give. We also need to see if there are
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fluctuations in the returns. An avenue with high fluctuations is considered to have
more risk. For example, two investments may give 10% average returns over a 5-year
period. The first
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one gives 10% on a yearly basis. The second one gives returns varying between 40%
gain and 10% loss, but its compounded average is still 10%. This means that the final
amount in their hands at the end of the 5 years is the same. However, the second
investment carries higher risk.
Liquidity or marketability is a key factor to consider while investing for children.

They cannot ask the college management to hold the seat for my daughter for the next
3 months, because they must sell a piece of land at the right market price. An avenue
having high liquidity can be sold at the market price quickly. Tax implications also
must be considered before a particular avenue is chosen.
Asset Vs Liability Vs Expense

Another set of distinctions must be studied before we can look at investment
strategies for children as it will determine how we release cash for our children's
needs. This is to understand the difference between assets, liabilities, and expenses.
From the personal finance angle, the definition of an asset is something that generates
a positive cash flow. Liabilities create a negative cash flow and expenses take away
the money just once.
The car is a liability as it continues to guzzle cash (in the form of fuel, maintenance,
and insurance). Their daughter's school books are an expense. Their daughter's Apple
iPhone 4S is a liability (higher rentals - despite the 50% discount offered by the
service providers. The question is will you choose the same rental program for a
normal phone?). A house given out on rent is an asset and so is the house that they
live in if them intend to sell it with capital appreciation. However, the house that they
live in and do not intend to sell, is a liability. Please think whether the jewellery that
they buy for themselves is an expense or an asset.
Must Dos
Apart from the above strategies, there are a few MUST DOs related to children. The
first and foremost is to take a life insurance term plan with high cover. The term plan
is the only TRUE insurance. There is no money returned, if there is no loss of the life
insured. A car worth '7.5 lakh will need an insurance premium of about '17,000, and
you only make a claim when there is damage. For the same premium, a 35-year-old
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person can be insured for '1 crore. Consider the term plan premium as an expense that
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that they make for their loved ones. By taking up a term plan that ensure that my
children's dreams and their dreams for them happen whether they are around or not.
The need for a term plan can be calculated as 12 times your annual income plus the
outstanding loan principals. Reviewing the term plan cover must be done once in 2-3
years. (The 12 comes from taking the long-term average bank interest at 8%). The
insurance cover should give our family members at least the income that we make
today if we are no more. This can be done by depositing the insurance claim in a bank
deposit and the yearly interest must be equal to our income
So, cover must be = (Income/8%) or approximately (Income x 12). This thumb rule is
the minimum cover that one needs and it does not cover for inflation.
Take up a health insurance plan for the family with at least '5 lakh as a floater cover.
The floater plan is one, where the cover is shared among the members of the family.
When they cross 45, shift from the floater to individual cover of '5 lakh. If their
forefathers had any critical illness (cancer, heart/kidney failures, stroke, etc) then it is
advisable to take a top-up health insurance going up to '10 lakh. These values are for
today, as inflation increases the health care costs, the covers will also need to be
increased.
Don’ts
Public Provident Fund (PPF), endowment type insurance plans and money-back
insurance plans are a strict NO! They are what are technically called as 'Asset Class
Mismatches'. They are savings plans but designed for the long term. Hence, their
returns are lower than inflation and they hardly have any liquidity. Their typical form
of liquidity is to take a loan from the fund. It does not make sense to them to take
money from their savings and then pay an interest to somebody. The money back plan
of course has liquidity planned into it. But one must pay a much higher premium for
the plan.
The other 'must not do' is to borrow to invest in a tax savings plan or for trading in the
stock market (day trading). Borrowing for a liability is also a NO NO! A car bought
on loan is the typical example. On one side they pay more than the car's worth due to
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the
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interest, on the other side the car depreciates. Instead, think of buying a second-hand
car with the cash that they have.
Can Dos
Changing trends need different thoughts too. Along with the changes in social and
economic scenarios, we also need to think differently for our children. Here are a few
of the things that they can do for their children. Can you think of:
Giving their daughter a house instead of 100 sovereigns of gold on her marriage? It
has more utility.
Create a business fund instead of a higher education fund? An education loan is easier
than a new business loan.
When a child is born, instead of buying gold, plant a set of teak trees. The trees are
good for the environment and will yield timber which is appreciating in price, faster
than gold.
Build a set of row houses (2 or more smaller apartments) rather than one big one - the
rental income will be higher again. Also based on the need, they can sell them one by
one to meet the different needs of their children. On the same note, build a
commercial building rather than a house. The rental income is higher for commercial
properties.
Explaining ULIPs and Children plans
The total annual premium for any ULIP or Unit Linked Insurance plan has two
components. The first is the life cover or actual insurance, known as 'Sum Assured'.
The amount deducted for this is called Premium allocation charge. Additionally,
administration charges are deducted, and the remaining goes into the other crucial
component - your investment. Units accrue into your account from these investments
made on their behalf by the insurance company, either into the equity markets, or debt
markets, or a mix of both (you choose this).
In normal ULIP plans, the insurer pays out either the sum assured, (the actual
insurance amount or risk cover) or the investment amount (from the Units), whichever
is higher, upon the death of the insured. The total plan terminates at this point. If the
person survives the entire term, only the investment amount is paid out. Units can be
redeemed when needed, (the value of your investment can be tracked at the
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company's website) but it pays to stay on for the full term and be regular with
premium payments.
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In a Child plan, the parent(s) are insured, and the beneficiary is the child. On the loss
of the insured parent, the plan does not terminate, but continues till the end of term.
Future premiums need not be paid, and the plan's benefits will continue for the child.
Some policies or plans also provide a monthly/yearly allowance for the child till the
end of the term. Some policies give a double benefit. They pay the Sum Assured
immediately upon the loss of the parent and take the onus of paying future premiums
into the investment account, for the remaining term. This ensures that the investments
continue to grow for the child. Since the benefits are more in a Child plan, the charges
are also higher than the normal ULIP plans.
Children Plans cannot take care of all the life insurance needs. They can be taken after
sufficient cover is achieved using term plan(s).
Note about the Comparisons:

Charges mentioned are a percentage of one annual premium for the first 10 years.
Fixed charges have been converted to a percentage, based on the lowest allowed
annual premium.
Only Unit Linked Plans have been compared, since only these plans make sense for
long term investment. Endowment plans being savings plans are not suitable for long
term investments.
The Unique Plan Number is provided by IRDA. Quote this number when asking for a
plan and cross check the same when you receive the policy document. Sometimes
similar sounding names of plans have caused confusion leading to purchase of wrong
plans.
The comparisons are based on charges. The lesser the charges, the better will be the
returns.
The lumping of charges towards the beginning of the plan will lead to slower fund
growth.
When using Unit Linked Funds, invest preferably on a monthly basis. Continue
investing in the equity-oriented funds till 3 to 4 years to maturity. At this point, shift
the accumulated corpus gradually into the debt/liquid funds. This will maximise the
returns and safeguard the funds. Unless market savvy, it is not advisable to use the
switching option.
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Strategies for Children
No single investment avenue in the market can take care of all the needs related to our
children. The best way to plan for their future is to segregate needs into the short term
and long term.
The short term needs like school admissions, computer, the bicycle, holidays, hobby
expenses (my daughter wants to go to Sri Lanka and Malaysia for Yoga camps and
competitions), etc need to be met from savings type avenues.
Long term needs like college admissions, PG courses and marriages need to be met
from investment type avenues. However, many of the long-term investments like land
and buildings have very low liquidity. Also, mutual funds and direct investment in
stocks fluctuate based on the market conditions. They cannot stop a market from
falling because it is the year of their daughter's college admission.
The strategy here will be to stay invested in the long-term investment till a year or two
before the actual need. Then the investment needs to be shifted into a savings avenue
with quick liquidity. (Sell the piece of land when she is in her 10th or 11th standard
and keep it in a bank deposit or debt mutual fund). This way we can make the gains
and manage the market fluctuations. One should not worry about the 'virtual' loss if
the markets do grow in the last year also.
Goals and Objectives of Childhood Education

Goals and Objectives are the most important things that provide the best direction and
success to us. Hence, it requires a lot of attention, dedication, and hard work for an
individual to get success. It is the responsibility of the parents to rethink their growth
and objective for proper development. The mind of a young child easily getting
distracted by several actions all around. Thus, it changes the direction of goal and
objective of childhood. Let us implement some of the important things that could help
in achieving the goals and objectives of childhood education.
Goals and Objectives of Childhood Education

Improve Socialization
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Childhood education is the beginning of knowledge, culture, and growth. It provides
various learning opportunities to the children for being social. Early childhood
education aims to provide the best learning resources that help in enriched the goals
and objectives. The CBSE affiliated school in Howrah aims to bring knowledge to the
child for being involved socially. There are several ways of being socially active.
Such as get involved with different persons and aims to complete group work with
various personalities.
Develop learning
Childhood education has various learning approaches. Therefore, they can provide a
different learning approach to improve their growth and development. However, kids
always feel curious to learn something new that brings the best skills and
development for their child. It is important to get innovative learning from one of the
top faculties with various reading and writing methods. Join the top CBSE schools in
Howrah that bring different learning methods and approach to bring the changes.
Learn to give Respect

Respect is something that can be observed. Showing respect for everyone is also one
of the biggest goals and objectives that bring various perceptions towards achieving
success. Therefore, it is important to conduct a good relationship with the child. If
they observe the positive and respectful relationship between parents and teachers,
they will simply try to follow the footstep of parents and teachers. Therefore, it is the
prime responsibility of parents and teachers to show respect to others in the presence
of the child. Provide different techniques of respecting elders, friends, and all others
to the child in different methods. It is very important for school kids and toddlers to
learn the same things for the best growth and development. The faculty member of the
best CBSE school in Howrah provides special lessons that show how to respect
others.
Physical development
Another goals and objective of childhood education are to understand the importance
of being healthy i.e., physically, and mentally. However, both are important and play
a significant role in their own way. The physical development help in gathering
energy to achieve your goals and objective. The mental development will make them
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stronger towards achieving goals and objectives.
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Building Gross-motor Skill
Motor skill development is very important and it brings the biggest opportunity to
provide learning, development, growth, skills, and several other knowledge. There are
several advantages of motor skills development and therefore, we must provide
admission in such schools that can bring the motor skills development in our child
from the beginning. Hence, get an opportunity to provide admission in CBSE school
in However that brings several motor skills developments for their kids that mention
below.
Tie your own Shoes.

Eat by themselves.
Wear your own Uniform.
Complete your own task.
Achieve daily targets.
Hence, these are some of the important goals and objectives of childhood education.
We discussed above all points in detail that brings several lessons, goals, and
objectives to bring the revolution in childhood education. Get ready to implement
these methods on your child for the best result in the future.
Limitations of A Child Education Plan

At first glance, a Child Education Plan seems to provide key benefits such as life
insurance cover, growth of capital as well as tax benefits in a single package. But a
closer look reveals several limitations that one needs to consider before choosing this
type of policy:
Low Life Cover

The life cover provided by Child Plans is limited to 10 times the annual premium
payable for the scheme. So, for an annual premium of Rs. 50,000 the life cover
offered by a Child Education Plan will only be Rs. 5 lakhs. This limited life cover is
almost like not having a life cover at all, and term plans offer a significantly higher
cover at a fraction of the cost.
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Diversion Of Premium Paid
Not all the premium paid for a Child Education Plan gets invested. This is because a
portion of the premium is allocated towards providing life cover to the insured
individual. As the invested amount is lower than the actual premium paid and various
charges are also deducted from the premium payments, the potential pay-out from
Child Education Plans gets reduced.
Few Investments Choices

Policyholders have limited options regarding where their money gets invested when
they opt for a Child ULIP. The investment choices are limited to a small number of
funds offered by the Insurance Company. Moreover, in the case of Child Endowment
Plans, it is the insurer and not the policyholder who decides the asset classes where
the investments will be made. This restricts the choice of policyholders when it comes
to selecting how and in which instruments the investments will be made.
Limited Flexibility
Child Education Plans are offered with a lock-in of 5 years during which no
withdrawals can be made. After completion of the lock-in, the policyholder has the
option to either surrender the policy or continue with the existing plan. Moreover, the
terms of the policy, such as premium payable, life cover, etc. of the existing Child
Education Plan cannot be altered once the plan is in effect. This limits the flexibility
of these insurance policies.
Schemes for Elementary, Secondary & Higher Education
With the formulation of National Policy on Education, India initiated a wide range of
programmes for achieving the goal of UEE through several schematic and Programme
interventions, such as
Sarva Shiksha Abhiyan

Mid-Day Meal
Mahila Samakhya
Strengthening for providing quality Education in Madrassas (SPQEM)
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Sarva Shiksha Abhiyan (SSA) is implemented as India's main Programme for
universalizing elementary education. Its overall goals include universal access and
retention, bridging of gender and social category gaps in education and enhancement
of learning levels of children.
Schemes for Secondary Education

Secondary Education is the most significant stage in the educational hierarchy as it
prepares the students for higher education and the world of work. The policy at
present is to make secondary education of good quality available, accessible, and
affordable to all young persons in the age group of 14-18. At present, the following
schemes targeted at secondary stage (i.e., class IX to XII) are being implemented in
the form of Centrally Sponsored Schemes:
Rashtriya Madhyamik Shiksha Abhiyan

Girls Hostel Scheme
National Scheme of Incentives to Girls for Secondary Education
Inclusive Education for Disabled at Secondary Stage
Scheme of Vocational Education
National Merit-cum-Means Scholarship Scheme
Scheme for construction and running of Girls Hostel for students of secondary and
higher secondary schools
Scholarship schemes for Minority students
National Scholarships
The National Council for Educational Research and Training (NCERT) promotes
educational development both in quantitative and qualitative terms and makes special
efforts to remove disparities and equalize educational opportunities for all students.
NCERT acknowledges and appreciates educational brilliance in students through the
National Talent Search Scheme. It also seeks to applaud artistic distinction through
the Chacha Nehru Scholarships - for artistic and innovative excellence. The National
Bal Bhawan has instituted a system of honouring talented children in different age
groups in the year 1995 through the Bal Shree scheme.
Schemes for Higher Education
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Higher Education is the shared responsibility of both the Centre and the States. The
coordination and determination of standards in institutions is the constitutional
obligation of the Central Government. The Central Government provides grants to
UGC and establishes Central Universities in the country. Meritorious students, from
families with or without necessary means, need an incentive or encouragement to
keep on working hard in their studies and go to the next level of education in their
academic career. This is where the scholarships and education loans play a crucial
role.
Following are some significant fellowship schemes/scholarships awarded by the

various institutions:
Scheme of Apprenticeship Training

National Scholarships
Post-Doctoral Research Fellow (Scheme)
Junior Research Fellowships for biomedical sciences
All India Council for Technical Education Scholarships
Department of Science and Technology grants and fellowships
DST's Scholarship Scheme for Women Scientists and Technologists
Biotechnology fellowships for doctoral and postdoctoral studies by DBT
Scholarships /Awards at Undergraduate & Postgraduate level in various science
courses at the University of Delhi
Fellowships/Scholarships/Awards by the Jawaharlal Nehru University
Sports Authority of India promotional schemes
Empowerment of Persons with Disabilities - Schemes/Programmes
Scholarship Schemes for ST Students by Ministry of Tribal Affairs
Post-matric Scholarships for SC /ST students
Scholarships for Minority Students
Objective of the study
1) To study how financial literacy level of salaried individuals affect their awareness
regarding financial products.
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2) To study how financial literacy level of salaried individuals affect their investment
preferences towards financial products.
3) Avoiding unnecessary generation of funds.
4) Determining the Capital structure for the business.
5) Tackling Financial Risks.
Limitations of the study
1) The data collected from the respondents are qualitative that is views, opinion,
preferences may differ from person to person
2) This research study was having limited amount of time due to which many
concepts were not able to mention.
3) Since this research study includes collecting numerous data from
numerous sites, books, and journals the required content may not be
available sometimes.
4) This research study was taken in a limited area only i.e., Dombivli city and
findings and analysis may vary if the area of the study is changed.
Chapter layout
The research study is arranged as follows:
I. Chapter I: Introduction gives a summary of concept of financial planning,

types of investment schemes, importance, scope, objectives and lastly the
limitation of the study.
II. Chapter II: Review of Literature mainly helps to refer good quality
research papers/ thesis to collect relevant, timely research on the chosen
topic, and synthesize it into a cohesive summary of existing knowledge in
the field.
2
III. Chapter III: Research design / methodology helps to explain the nature of the
study.
IV. Chapter IV: Data analysis and interpretation deals with the survey-based
questionnaire which are displayed in the table / graph format.
V. Chapter V: Conclusion summarizes the whole study.
2
CHAPTER II
REVIEW OF LITERATURE
A review of literature is an essential feature of any academic research. An effective

review lays foundation for advanced research. It facilitates new theory development
and uncovers the areas where research is needed. The chapter has been divided in two
parts. In the First Part, the literature on Financial Literacy and Personal Financial
Planning has been discussed and in the Second one, Literature related to components
of Personal Financial Planning has been reported.
Refksy Fielnanda (SEA-AFSID 2018) conducted research on the title Child

education investment in financial planning It is viewed from the knowledge of Bukit
Village in Palawan Subdistrict people that they have sufficient knowledge of financial
planning of child future education investment, where awareness of the importance of
child education is relatively high so that the people attempt to maximize the fund from
income to prepare for child education. After collecting the
Data the result analysis of the effect of family financial planning on the child future
education investment in Bukit Village in Palawan.
Martha Henn McCormick did a research study on Effectiveness of children/youth in

financial education which talked about the need and the essential education required
for the respective children/ youth in todays or the coming future generation. This
study provides a snapshot of financial education status at a moment in time,
summarizing what is known, delineating what is happening now, and providing
direction for future efforts to educate the school-age population for a lifetime of
financial decision making and security in a dauntingly complex marketplace.
2
Cong Rong Ouyang, B.S. The Ohio State University 2016 conducted research study
on Parents saving behaviour on children’s education. This study has provided
empirical evidence that the life model theory of parents’ saving behaviours does have
explanatory power as a theoretical framework when studying households with
children younger than 18. It has also provided an application of this theory for college
education, which can be helpful in determining alternative programs to help
households with their children’s higher education. Lastly, this analysis is shown that
expecting unexpectable educational expenses is a strong predictor which has a saving
goal for children’s college education.
Agarwal et al. examine the relationship between fiscal planning & individual
investment over the period of 2015. He also uses multivariate analysis to find his
result which helped a lot in the study. He found this in his study that the probability of
getting true answers regarding the fiscal knowledge is high- position for manly
repliers than womanish, and it increases with education position and the
aggressiveness of the existent.
Tacchino 2004 examine the relationship between individual fiscal planning &
individual investment in fresh too how fiscal Diary is the plan in over the period
2004. He uses different ways to find the answers to the questions like demography of
ageing, the biology of ageing, family connections, and social support does not feel to
be a concern for fiscal itineraries. It is getting egregious that interdisciplinary literacy
is essential for expert service.
PURPOSE OF THE STUDY
The main purpose of education is to provide the opportunity for acquiring knowledge
and skills that will enable people to develop their full potential, and become
successful members of society. School does not just involve letters and numbers, but
also teachers and the entire education system where students are taught critical
thinking, honesty, and humanitarianism. These are invaluable lessons that stay with a
person throughout their life.
2
CHAPTER - III
RESEARCH DESIGN
 Title of the Research – The title of the research project is “A review of

financial planning for children’s education”
 Nature of the research -
The overall design of this study was exploratory. It is used to understand the
concept behind the topic and to find the problems faced on the research. The
data associated with this study were collected through quantitative
methodologies and a questionnaire was developed to facilitate this
investigation.
 Purpose of the study- Indeed though education is the most important
precedence for parents, the costs are major concern. They shell out a large
portion of their savings to give the best education possible. Hence, a
fiscal plan to achieve this thing is very important. However, the before
you start planning, the better it will be.
 Scope of the study - The scope of the study is to find out how financial
planning is done. Financial operation planning can be done on both a
particular and business position. On the position, it can help individualities
determine how best to save for withdrawal, pay off debt, and set up an
exigency fund.
Time period: Financial year 2022-23
Duration: The study was conducted from December 2022 to March 2023
 Data collection methods
This study is based on Primary as well as Secondary data
1) For Primary data: In this research project primary source of data

was collected through a survey where questionnaire was prepared
for the respondents based on the research project.
2
A structured questionnaire was formulated for receiving primary
data to collect the primary data from 101 parents via the internet survey
method. The survey had various types of questions as required by the
objectives of this research. In the questionnaire there were two major sections
in the questions, viz. Demographic Data and a combination of concepts like
financial literacy, Family financial socialization, Saving behaviour, Lack of
self - control, and financial journey of parenting.
2) For Secondary data: In this research project secondary data was also used
for the purpose of data collection. It was collected by visiting various
websites, books, journals. All the reference taken from books, websites or
links are mentioned under the title Bibliography.
 Sampling
Sampling method: For this research study sampling method is used
Sampling size: The sample of 50 respondents has been collected through the
questionnaire
Location: Dombivli city
 Tools for Analysis
Statistical tools are involved in carrying out a study including planning,

designing, collecting data, analysing, witing meaningful interpretation and
reporting of the research findings.
The tool is percentage method.
 Data Presentation
For the data presentation of research project, various tables and graphs are
used. The tables are representing the percentage of responses of respondents
Graphs and pie diagrams are used to show the data of this research project
Therefore, the interpretation is based on the analysis of the data
3
CHAPTER - IV
DATA ANALYSIS AND INTERPRETATION
Information of 101 Respondents was collected for the below analysis. The below
given analysis was done with the help of Questionnaire prepared to know about how
financial planning is done for children’s education.
Table no.4.1 Age of respondents
Age Frequency Percentage

25-30 41 40.6
31-35 12 11.9
36-40 17 16.8
41-45 31 30.7
Total 101 100
Fig: 4.1 Age of respondents
(Source: primary data)
Above table & figure indicated that out of 101 respondents 41 (40.6%) are of 25-30
age group, 12(11.9%) were of 31-35, then 17(16.8%) of 36-40 age group, and the
remaining 31(30.7%) of 41-45 age group.
3
Table no. 4.2 Gender of respondents
Gender Frequency Percentage

Male 51 50.5%
Female 50 49.5
Total 101 100
Fig:4.2 Gender of respondents
Above table & figure indicated that out of 101 respondents 51(50.5%) are Male and
50(49.5%) are Females.
3
Table no. 4.3 Occupation of respondents
Occupation Frequency Percentage

Business/ Profession/ Self 42 41.6
Employed
Service 48 47.5
Homemaker 11 10.9
Total 101 100
Fig:4.3 Occupation of respondents
Above table & figure indicated that out of 101 respondents 42 (41.6%) are from
Business / Self-Employed, 48(47.5%) were from Service and 11(10.9%) are from
Homemaker.
3
Table no. 4.4 Annual income of respondents
Family Annual Income Frequency Percentage
Less than 2.5 lakhs 21 20.8
2.5 to 5 30 29.7
5 to 10 24 23.8
10 to 20 19 18.8
More than 20 7 6.9
Total 101 100
Fig:4.4 Annual income of respondents
Above table & figure indicated that out of 101 respondents 21(20.8%) earn less than
2.5 lakhs, 30(29.7%) earn 2.5 to 5, then 24(23.8%) earn 5 to 10, 19(18.8%) earn from
10 to 20 and the remaining 7(6.9%) earn more than 20 lakhs.
3
Table no. 4.5 Marital status of respondents
Marital status Frequency Percentage

Married 66 65.3
Unmarried 32 31.7
Divorced/ Widowed 3 3
Total 101 100
Fig:4.5 Marital status of respondents
Above table & figure indicated that out of 101 respondents 66(65.3%) are Married,
whereas 32(31.7%) were Unmarried and the rest 3(3%) was Divorced/Widowed.
3
Table no. 4.6 Children’s of respondents
Children Frequency Percentage

NIL 32 31.7
1 36 35.6
2 28 27.7
3 4 4
More than 3 1 1
Total 101 100
Fig: 4.6 No. of children respondents have
Above table & figure indicated that out of 101 respondents 32 (31.7%) Do not have
children, 36(35.6%) have only 1 child, then 28(27.7%) have 2 children, 4(4%) have 3
children’s and the remaining 1(1%) have more than 3.
3
Table no. 4.7 Agreement or Disagreement of Market offers investment schemes
Market offers Investment Frequency Percentage

schemes
Strongly Disagree 3 3
Disagree 5 5
Somewhat Disagree 3 3
Neutral 15 14.9
Somewhat Agree 13 12.9
Agree 49 48.5
Strongly Agree 13 12.9
Total 101 100
(Source: primary data) fig: 4.7
Above table & figure indicated that out of 101 respondents 3(3%) stated ‘Strongly
Disagree’ with the market offering special investment to secure child’s future 5(5%)
stated ‘Disagree’, 3(3%) stated ‘Somewhat Disagree’, 15(14.9%) stated ‘Neutral’. It is
indicated that 13(12.9%) stated ‘Somewhat Agree’, 49(48.5%) ‘Agreed’, and the
remaining 13(12.9%) stated ‘Strongly Agreed’.
3
Table no. 4.8 Agreement or Disagreement on attending seminars & workshops
Attending seminars & Frequency Percentage

workshops
Strongly Disagree 6 5.9
Disagree 20 19.8
Somewhat Disagree 6 5.9
Neutral 30 29.7
Agree 255 24.8
Strongly Agree 4 4
Total 101 100
(Source: primary data) fig:4.8
Above table & figure indicated that out of 101 respondents 6(5.9%) stated ‘Strongly
Disagree’ that they attend financial seminars / workshops to invest smartly 20(19.8%)
stated ‘Disagree’, 6(5.9%) ‘Somewhat Disagreed’, 30(29.7%) stated ‘Neutral’. It is
indicated that 10(9.9%) stated ‘Somewhat Agree’, 25(24.8) ‘Agreed’ with the
statement and the remaining 4(4%) stated ‘Strongly Agree’
3
Table no. 4.9 Agreement / Disagreement on children-oriented schemes
Children oriented Frequency Percentage

schemes
Disagree 4 4
Neutral 28 27.7
Agree 38 37.6
Total 101 100
Interpretation:
Disagree’, 4(4%) stated ‘Disagree’, 3(3%) stated ‘Somewhat Disagree’, 28(27.7%)
stated ‘Neutral’. It is indicated that 17(16.8%) stated ‘Somewhat Agree’, 38(37.6%)
‘Agreed’ about where to get the information about children-oriented schemes, and the
remaining 9(8.9%) ‘Strongly Agreed’.
3
Table no. 4.10 Agreement/ Disagreement on reading financial magazines/articles
Read financial magazines/ Frequency Percentage

articles
Disagree 16 16
Neutral 14 14
Somewhat Agree 18 18
Agree 34 34
Strongly Agree 4 4
Total 101 100
(Source: primary data) fig:4 .10
Disagree’ that they do not read financial magazines/articles for children’s future
16(16%) stated ‘Disagree’, 6(6%) stated ‘Somewhat Disagree’, 14(14%) stated
‘Neutral’. It is indicated that 18(18%) stated ‘Somewhat Agree’, 34(34%) stated
‘Agree’ and the remaining 4(4%) ‘Strongly Agreed’.
4
Table no. 4.11 Agreement / Disagreement on awareness about children-oriented
schemes to secure child’s future
Aware about children- Frequency Percentage

oriented schemes to
secure child’s future
Disagree 5 5
Neutral 12 11.9
Agree 43 42.6
Total 101 100
‘Agree’ about knowing that investment in children related schemes is useful to secure
children’s future, and the remaining 26(25.7%) stated ‘Strongly Agree’
4
Table no. 4.12 Agreement/Disagreement in discussing about taxes & returns with
financial advisor
Discussing about taxes & Frequency Percentage

return with financial
advisor
Disagree 8 7.9
Neutral 22 21.8
Agree 39 38.6
Total 101 100
Above table & figure indicated that out of 101 respondents 5(5%) ‘Strongly Disagree’
that they do not discuss about taxes and returns with financial advisor. 8(7.9%) stated
‘Disagree’, 1(1%) stated ‘Somewhat Disagree’, 22(21.8%) stated ‘Neutral’. It is
indicated that 14(13.9%) ‘Somewhat Agree’, where 39(38.6%) stated ‘Agree’, and the
remaining 12(11.9%) stated ‘Strongly Agree’.
4
Table no. 4.13 Agreement/Disagreement of education expenses higher than
average rate
Education expenses Frequency Percentage

higher than average rate
Disagree 0 0
Neutral 9 8.9
Agree 45 44.6
Total 101 100
Disagree’, 0(0) stated ‘Disagree’, 1(1%) stated ‘Somewhat Disagree’, 9(8.9%) stated
‘Neutral’. It is indicated that 15(14.9%) stated ‘Somewhat Agree’, 45(44.6%) ‘Agree’
that they are aware about the education expenses increasing more than average
inflation rate and the remaining 27(26.7%) stated ‘Strongly Agree’.
4
Table no. 4.14 Agreement/Disagreement of investments can generate wealth
Investments can generate Frequency Percentage

wealth
Disagree 4 4
Neutral 11 10.9
Agree 40 39.6
Total 101 100
‘Neutral’. It is indicated that 11(10.9%) stated ‘Somewhat Agree’, 40(39.6%) stated
‘Agreed’ that the early investments can generate greater wealth and the remaining
29(28.7%) stated ‘Strongly Agree’.
4
Table no. 4.15 Agreement/Disagreement about schemes should be started at the
early years
Schemes should be started Frequency Percentage

at the early years
Disagree 1 1
Neutral 4 4
Agree 40 39.6
Total 101 100
Disagreed’ with the above statement 1(1%) stated ‘Disagree’, 5(5%) stated
‘Somewhat Disagree’, 4(4%) stated ‘Neutral’. It is indicated that 17(16.8%) stated
‘Somewhat Agree’, 40(39.6%) stated ‘Agree’, and the remaining 32(31.7%) stated
‘Strongly Agree’.
4
Table no. 4.16 Agreement/Disagreement on investment help in funding child'
Investment help in Frequency Percentage

funding child’s higher
education
Disagree 3 3
Neutral 10 9.9
Agree 42 41.6
Total 101 100
stated ‘Agreed’ to the investment in children-oriented schemes which help in funding
child’s higher education and the remaining 28(27.7%) stated ‘Strongly Agree’.
4
Table no. 4.17 Agreement/Disagreement on saving for sudden expenses
Saving for sudden Frequency Percentage

expenses
Disagree 3 3
Neutral 14 13.9
Agree 53 52.5
Total 101 100
Above table & figure indicated that out of 101 respondents only 2(2%) ‘Strongly
Disagreed’ with saving for meeting contingencies/ sudden expenses 3(3%) stated
‘Disagree’, 2(2%) stated ‘Somewhat Disagree’, 14(13.9%) stated ‘Neutral’. It is
indicated that 11(10.9%) stated ‘Somewhat Agree’, 53(52.5%) stated ‘Agree’, and the
remaining 16(15.8%) stated ‘Strongly Agreed’ with the statement
4
Table no. 4.18 Agreement/Disagreement for saving for children
Saving for children Frequency Percentage

Disagree 3 3
Neutral 13 12.9
Agree 49 48.5
Total 101 100
Disagree’, 3(3%) stated ‘Disagree’, 0(0) stated ‘Somewhat Disagree’, 13(12.9%)
‘Agreed’ about saving for their children and the remaining 27(26.7%) stated ‘Strongly
Agree’
4
Table no. 4.19 Agreement/Disagreement of saving for future responsibilities
Saving for future Frequency Percentage

responsibilities
Disagree 0 0
Neutral 6 5.9
Agree 58 57.4
Total 101 100
Disagree’ for saving for future responsibilities 0(0) stated ‘Disagree’, 2(2%) stated
‘Somewhat Disagree’, 6(5.9%) stated ‘Neutral’. It is indicated that 9(8.9%) stated
‘Somewhat Agree’, 58(57.4%) ‘Agreed’, and the remaining 23(22.8%) stated
4
Table no. 4.20 Agreement/Disagreement on saving to meet the expected inflation
rates
Saving to meet the Frequency Percentage

expected inflation rates
Disagree 2 2
Neutral 14 13.9
Agree 50 49.5
Total 101 100
Disagreed’ with saving in order to meet the expected high rates of inflation 2(2%)
stated ‘Disagree’, 0(0) stated ‘Somewhat Disagree’, where 14(13.9%) stated
‘Agree’, and the remaining 13(12.9%) stated ‘Strongly Agree’.
5
Table no. 4.21 Agreement/Disagreement for following a careful budget
Following a careful Frequency Percentage

monthly budget
Disagree 4 4
Neutral 14 13.9
Agree 50 49.5
Total 101 100
(Source: primary data) Fig:4.21
4stated ‘Neutral’. It is indicated that 19(18.8%) stated ‘Somewhat Agree’, 50(49.5%)
‘Agreed’ that they follow a careful monthly budget, and the remaining 12(11.9%)
stated ‘Strongly Agreed’.
5
Table no. 4.22 Agreement/Disagreement of family helps in financial decision
making
Family helps in financial Frequency Percentage

decision making
Disagree 6 5.9
Neutral 14 13.9
Agree 47 46.5
Total 101 100
Disagree’, 6(5.9%) stated ‘Disagree’, 3(3%) stated ‘Somewhat Disagree’, 14(13.9%)
‘Agreed’ about family helping in financial decision making and the remaining
13(12.9%) stated ‘Strongly Agree’.
5
Table no. 4.23 Agreement/Disagreement on discussing financial matters with
family
Discussing about financial Frequency Percentage

planning with the family
Disagree 2 2
Neutral 20 19.8
Agree 45 44.6
Total 101 100
Disagreed’ that they often talk about financial planning and management with their
family, 2(2%) stated ‘Disagree’, 2(2%) stated ‘Somewhat Disagree’, 20(19.8%) stated
‘Agree’, and the remaining 12(12.9%) ‘Strongly Agreed’ with the statement.
5
Table no. 4.24 Agreement/Disagreement on saving to do regularly
Saving to do regularly Frequency Percentage

Disagree 4 4
Neutral 20 19.8
Agree 48 47.5
Total 101 100
Above table & figure indicated that out of 101 respondents 3(3%) ‘Strongly
Disagreed’ with the above statement 4(4%) stated ‘Disagree’, 3(3%) stated
‘Somewhat Disagreed’, 20(19.8%) stated ‘Neutral’. It is indicated that 12(11.9%)
stated ‘Somewhat Agree’, 48(47.5%) stated ‘Agree’, and the remaining 11(10.9%)
stated ‘Strongly Agree’.
5
Table no.4.25 Agreement/Disagreement on spending on other enjoyments are
more important than saving
Spending on other Frequency Percentage

enjoyments are more
important than saving
Disagree 24 23.8
Neutral 17 16.8
Agree 14 13.9
Strongly Agree 2 2
Total 101 100
Above table & figure indicated that out of 101 respondents 24(23.8%) ‘Strongly
Disagreed’ with the spending of immediate pleasures and enjoyments are more
important than savings 24(23.8%) stated ‘Disagree’, 9(8.9%) stated ‘Somewhat
Disagree’, 17(16.8%) stated ‘Neutral’. It is indicated that 11(10.9%) stated
‘Somewhat Agree’, 14(13.9%) stated ‘Agreed’ with the statement and the remaining
2(2%) stated ‘Strongly Agree’
5
Table no. 4.26 Agreement/Disagreement on this “statement”
I see, I like it best Frequency Percentage

describes me
Disagree 26 25.7
Neutral 17 16.8
Agree 15 14.9
Strongly Agree 4 4
Total 101 100
Disagreed’ with the above statement, 26(25.7%) stated ‘Disagree’, 6(5.9%) stated
‘Somewhat Disagree’, 17(16.8%) stated ‘Neutral’. It is indicated that 12(11.9%)
‘Somewhat Agreed’, 15(14.9%) stated ‘Agree’, and the remaining 4(4%) stated
5
Table no. 4.27 Agreement/Disagreement on saving goals to achieve children’s
future
Saving goals to achieve Frequency Percentage

children’s future
Disagree 25 24.8
Neutral 21 20.8
Agree 19 18.8
Strongly Agree 4 4
Total 101 100
Disagreed’ for setting goals for children’s future 25(24.8%) stated ‘Disagree’,
10(9.9%) ‘Somewhat Disagreed’, 21(20.8%) stated ‘Neutral’. It is indicated that
12(11.9%) stated ‘Somewhat Agree’ to the above statement 19(18.8%) ‘Agree’, and
the remaining 4(4%) ‘Strongly Agreed’.
5
Table no. 4.28 Agreement/Disagreement about spending on immediate
enjoyment is important than savings
Spending on immediate Frequency Percentage

enjoyment is important
than savings
Disagree 26 25.7
Neutral 21 20.8
Agree 13 12.9
Strongly Agree 4 4
Total 101 100
Disagreed’ with the importance for spending immediate enjoyment of children as
more important than investing in children-oriented schemes. 26(25.7%) stated
‘Disagree’, 13(12.9%) ‘Somewhat Disagreed’, 21(20.8%) stated ‘Neutral’. It is
indicated that 11(10.9%) stated ‘Somewhat Agree’, 13(12.9%) ‘Agreed’ to the above
statement and the remaining 4(4%) ‘Strongly Agreed’
5
Table no. 4.29 Agreement/Disagreement for generating extra income for
children’s future
Generating extra income Frequency Percentage

for children’s future
Disagree 6 5.9
Neutral 23 22.8
Agree 41 40.6
Total 101 100
Above table & figure indicated that out of 101 respondents only 2(2%) ‘Strongly
Disagreed’ about the given statement 6(5.9%) stated ‘Disagree’, 2(2%) stated
‘Somewhat Disagree’ where 23(22.8%) stated ‘Neutral’. It is indicated that 20(19.8%)
stated ‘Somewhat Agreed’ with the respective statement 41(40.6%) stated ‘Agreed’
and the remaining 7(7.6%) stated ‘Strongly Agree’.
5
Table no. 4.30 Agreement/Disagreement on financially prepared to educate
for children’s education
Financially prepared to Frequency Percentage

educate for children’s
education
Disagree 7 6.9
Neutral 20 19.8
Agree 35 34.7
Total 101 100
Disagreed’, 7(6.9%) stated ‘Disagree’, 5(5%) stated ‘Somewhat Disagree’, 20(19.8%)
stated ‘Neutral’. It is indicated that 22(21.8%) ‘Somewhat Agreed’ to the above
statement where 35(34.7%) stated ‘Agreed’ that they are financially prepared to
educate their children for professional courses and the remaining 10(9.9%) stated
6
Table no. 4.31 Agreement/Disagreement for difficulty in controlling unnecessary
expenses
Difficulty in controlling Frequency Percentage

unnecessary expenses
Disagree 29 29.3
Neutral 10 10.1
Agree 15 15.2
Strongly Agree 3 3
Total 101 100
Above table & figure indicated that out of 101 respondents 13(13.1%) stated
‘Strongly Disagree’, 29(29.3%) ‘Disagreed’ that it is difficult for them to control from
spending money 11(11.1%) stated ‘Somewhat Disagreed’, 10(10.1%) stated ‘Neutral’.
It is indicated that 18(18.2%) stated ‘Somewhat Agreed’, 15(15.2%) stated ‘Agreed’
to the above statement and the remaining 3(3%) stated ‘Strongly Agree’.
6
Table no. 4.32 Agreement/Disagreement in spending immediately after
getting paid
Spending immediately Frequency Percentage

after getting paid
Disagree 34 33.7
Neutral 17 16.8
Agree 14 13.9
Strongly Agree 2 2
Total 101 100
Disagreed’ that they always spend it immediately when they get the money,
34(33.7%) ‘Disagreed’ where 9(8.9%) stated ‘Somewhat Disagreed’, 17(16.8%)
stated ‘Neutral’. It is indicated that 11(10.9%) stated ‘Somewhat Agreed’ 14(13.9%)
stated ‘Agreed’ to the above statement and the remaining 2(2%) stated ‘Strongly
Agreed’.
6
Major Findings
 As per the data maximum number of respondents i.e., 101 where 40.6
are from the age group of 25-30 years and the least are from the age
group of 36-40 i.e., 11.9%
 As per the data maximum no. of respondents are Male i.e., 50.5%
 As per the data maximum no. of respondents are from Service
sector having 47.5% and the least from Homemaker sector which is
10.9%
 Majority people’s annual income starts with 2.5 lakhs to 5 lakhs
 36% respondents from the above data given have only 1 child and only
3% people have 3 children
 Many of the respondents ‘Agree’ with knowing the market offers
special investment schemes to secure child’s future
 30% respondents which is ‘Neutral’ attend financial seminars /
workshops whereas only 4% people ‘Disagree’ with the statement
 Here 38% respondents ‘Agree’ with knowing the information about
children-oriented schemes and 4% respondents ‘Disagree’ with this
 As per the given data only 34% respondents ‘Agree’ with reading the
magazines / articles for children’s future, where the least respondents
i.e., 16% ‘Disagree’ reading it
 Maximum no. of respondents ‘Agrees’ with having 46% of knowing
the risks and returns in children-oriented schemes and 5% in
‘Disagree’
 Only 43% respondents ‘Agree’ of awareness about the investment in
children oriented schemes for securing child’s future whereas 5%
‘Disagree’
 Highest no. of respondent in discussing about taxes & returns with
financial advisor are 39% ‘Agree’ and 8% ‘Disagree’
 45% respondents ‘Agree’ about knowing the education expenses are
increasing more than average inflation rate and ‘Nobody’ disagrees
with it
6
 As per the data given only 40% ‘Agree’ with knowing the early
investments can generate greater wealth but 4% respondents ‘Disagree’
with this
 As per the data given 40% respondents ‘Agree’ with investment
knowing in children related schemes
 42% people ‘Agree’ with investment in children-oriented schemes can
help in funding for higher education
 50% respondents ‘Agree’ with them saving for living expenses
 53% people ‘Agree’ with saving for meeting contingencies/ sudden
expenses
 I save for my children ‘Agree’ with 49% respondents
 Majority respondents i.e., 58% people ‘Agree’ saving for future
responsibilities
 According to data 50% respondents ‘Agree’ with saving in order
to meet the expected high rates of inflation/ high prices.
 50% respondents ‘Agree’ with following a careful monthly budget
 The maximum no. of respondents i.e., 50% ‘Agree’ that family helps
them in financial decision making
 As per the data given 45% respondents ‘Agree’ with they often talk
about the financial planning and management of children’s expenses
and only 2% ‘Disagree’ with this
 According to data given 49% respondents ‘Agree’ that they appreciate

it when their family gives advice about what to do with the money
 As per the data analysis, 48% people ‘Agree’ that saving is something
they do regularly because their family wanted them to save
 In this case, 24% respondents ‘Strongly Disagree’ about spending for

immediate pleasures and enjoyments are more important than savings
and only 14% people ‘Agree’ with this
6
 (I see it, I like it, I buy it) best describes me, this statement has ‘Disagree’
of 26% respondents
 The highest no. of respondents ‘Disagrees’ people setting saving goals for
children’s future is 25%
 35% respondents ‘Agree’ that they are financially prepared to educate their
children for professional courses / foreign university
6
CHAPTER – V
CONCLUSION
Financial education is a concept that individuals need to know at every step of their
lives and at every aspect of their daily lives. Especially, in today’s financial markets,
stunningly developing products and services, increasing consumer debts, low
financial literacy and changing socio-demographical conditions increase the
importance of this education and necessitate the continuity of it. Therefore, designing
and applying a national strategy for financial education seems like a qualified solution
suggestion. However, it is impossible to define a single strategy that is suitable for
every country. In these circumstances, best results should be expected from solutions
that are designed for each country specifically through analyzing examples of
countries and international studies.
As a parent, they always try to give their children the best of education, comfort, and
other provision, as your child grows, the charges towards their education and other
requirements also continue to rise. Along with affectation, major charges like their
advanced education or marriage can impact their fiscal pretensions. Thus, it is
necessary to guard their child's unborn financially through prudent fiscal planning.
The before you start your fiscal planning the better will be your returns. Proper fiscal
planning also helps you navigate through the misgivings of life. It is tough to gauge
your child's interest at an early age and given the adding cost of pursuing advanced
education, delaying on a fiscal plan can be dangerous.
6
BIBLIOGRAPHY
Books
 Introduction to Financial Planning by Mr. Arun Ohri, Director planning, Ad

factors Advertising and for ‘Wealth Creation.’
Websites
 https://www.miraeassetmf.co.in/knowledge-center/importance-of-financial-
planning
 https://www.parentcircle.com/financial-planning-for-children/article
 https://www.franklintempletonindia.com/investor-education/new-to-
investing/video/importance-of-financial-planning
 http://www.taxmann.com
 https://www.personalfn.com/guide/steps-to-plan-childs-education
 https://www.slideshare.net/SumitBehura1/childrens-education-planning
 https://www.policybazaar.com/life-insurance/child-plans/articles/top-child-
investment-plans-in-india/
 https://www.hdfclife.com/insurance-knowledge-centre/investment-for-future-
planning/right-time-to-invest-in-child-investment-plans
 https://www.iciciprulife.com/investments/importance-of-financial-
planning.html
 https://www.gtu.ac.in/uploads/Avni%20Patel%20-%20Thesis%20-
%20129990992002.pdf
6
ANNEXURES
 Age
 Gender
 Occupation
 Marital Status
 No. of children they have
 Married or Unmarried
 List of children investment schemes that you might know?
 I know that the market offers special investment schemes to secure
child’s future.
 I attend financial seminars or workshops to invest smartly
 I know where to get the information about children oriented investment
schemes
 I read financial magazines / articles to save and invest for children’s future.
 I know about the risks and returns of children-oriented schemes.
 I am aware that investment in children-oriented schemes is useful to secure
children’s future education.
 I discuss about taxes and returns with my financial advisor / expert
before investing in children oriented schemes.
 I am aware that education expenses are increasing more than average inflation
rate.
 I know that early investments can generate greater wealth.
 I know that investment in children – oriented schemes must be started in early
years of the child.
 I know that investment in children – oriented schemes can help in funding
child’s higher education.
 I save for my living expenses
 I save for meeting contingencies / sudden expenses.
 I save for my children
 I save for future responsibilities.
 I save in order to meet the expected high rates of inflation / high prices.
6
 In order to save, I always follow a careful budget.
 My family helps in financial decision making.
 I often talk about financial planning and management of children expenditure
with my family.
 I appreciate it when my family gives me advice about what to do with my
money.
 Saving is something I do regularly because my family wanted me to save.
 When I get money, I always spend it immediately (within few days).
 I believe that spending for immediate pleasures and enjoyments are more
important than savings.
 (I see it, I like it, I buy it) best describes me.
 It is difficult for me to control myself from spending money.
 When I set saving goals for children’s future, I rarely achieve them.
 I think that spending for immediate enjoyment of children (such as
clothes, toys, gifts) is more important than investing in children oriented
schemes.
 In order to save for children’s future, I try to generate extra income.
 I am financially prepared to educate my children for professional courses or
foreign university.

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CHAPTER - I

Financial planning is the process of taking a comprehensive look at their financial

Meaning of Financial Planning

Understanding the Different Types of Financial Planning

3. Retirement planning: They presumably want to stop working someday. Retirement

4. Philanthropic planning: It is always nice to give something to people who need it or

8. Budgeting: This is perhaps the cornerstone of financial planning. A planner can

Meaning of Children Education Plans and their working

The insurance component is intended to shield the child against unfavourable

The purpose of the investment component is to accumulate funds through investing in

Benefits of financial planning

Enjoy a better standard of living

Be prepared for emergencies

Attain peace of mind

Financial planning for life goals

Need for financial planning for children’s education

The Traditional Challenges

The Modern Challenges

Factors to Consider while Investing/Saving

Liquidity or marketability is a key factor to consider while investing for children.

Asset Vs Liability Vs Expense

Note about the Comparisons:

Goals and Objectives of Childhood Education

Goals and Objectives of Childhood Education

Learn to give Respect

Tie your own Shoes.

Limitations of A Child Education Plan

Low Life Cover

Few Investments Choices

Schemes for Elementary, Secondary & Higher Education

Sarva Shiksha Abhiyan

Schemes for Secondary Education

Rashtriya Madhyamik Shiksha Abhiyan

Schemes for Higher Education

Following are some significant fellowship schemes/scholarships awarded by the

Scheme of Apprenticeship Training

Objective of the study

3) Avoiding unnecessary generation of funds.

4) Determining the Capital structure for the business.

5) Tackling Financial Risks.

Limitations of the study

The research study is arranged as follows:

I. Chapter I: Introduction gives a summary of concept of financial planning,

A review of literature is an essential feature of any academic research. An effective

Refksy Fielnanda (SEA-AFSID 2018) conducted research on the title Child

Martha Henn McCormick did a research study on Effectiveness of children/youth in

PURPOSE OF THE STUDY

 Title of the Research – The title of the research project is “A review of

Time period: Financial year 2022-23

 Data collection methods

This study is based on Primary as well as Secondary data

1) For Primary data: In this research project primary source of data

Sampling method: For this research study sampling method is used

Location: Dombivli city

 Tools for Analysis

Statistical tools are involved in carrying out a study including planning,

The tool is percentage method.

Therefore, the interpretation is based on the analysis of the data

DATA ANALYSIS AND INTERPRETATION

Table no.4.1 Age of respondents

Age Frequency Percentage

Fig: 4.1 Age of respondents

(Source: primary data)