FINANCIAL LITERACY

Aparajita
Bharvi Gupta
Purushotma
Chhabra
Vaishnavi
 SURVEY
ONLINE:
ONLINE:GOOGLE
GOOGLEFORM
FORMSURVEY OFFLINE: IN PERSON INTERVIEW
We have classified the data of the
survey on the basis of:
o Gender
o Knowledge of financial
instrument
o Stream
o Source of Information
o Type of Investments
 BASIC LOGISTICS AND ANALYSIS
◦ We conducted a comprehensive survey trying to balance the male female
ratio. Our survey form was filled by 54.2% females and about 45.8% males.
◦ 9 people out of 24 have no idea about monthly budget and end up spending
their money on things that can be avoided. Majority of them of 18-27 age
group and females.
◦ On a scale of 1 to 5, males rate their financial literacy as 4-5 whereas, females
stand on a scale of 3-4.
◦ Males prefer investing the money they save, tracking transactions on daily basis,
long term savings.
◦ Females were self aware of their spending and saving habits.
◦ Since most of them surveyed are students, they accept the fact that they
spend unnecessarily on food and clothes sometimes.
KNOWLEDGE OF FINANCIAL INSTRUMENTS
◦As per the survey, Banks, Central
Banks and Mutual Funds are
popular among people for
finances, investments.
◦Credit Unions are uncommon to
people. (Credit Unions are not-for-
profit financial institution that
accept, deposit, make loans and
provides a wide array of other
financial services and products)
◦Apart from this, some people
don’t even have idea about any
of the following.
SOURCES OF INFORMATION
o About 33.3% of the people
surveyed find books as the most
reliable source of information to
understand the concepts of
financial literacy.
o Practical application and
theoretical knowledge are two
different things. So, until and
unless we apply these tools into
our life, they are of no use as
such.
TYPES OF INVESTMENTS
◦Majority still believes that
Mutual Funds and Stocks can
be used to invest money for
short term and long term
goals.
◦However, male had more
diverse options to invest
money whereas females
preferred mutual funds, FD’s,
gold purchases.
STREAMS
o Commerce students have
answered the questions in
much details than other
students.
o They have investment
options which are even
better than the conventional
ones.
o Their responses show that
they are more financial
literate more in comparison
to others.
o They even used more of their
conceptual knowledge to
answer the questions.
 CREDIT SCORE
o Credit Score is a number that
is used to predict how likely
you are to pay a credit on
time.
o A higher credit score indicates
better creditworthiness,
leading to favourable loan
terms and interest rates.
Based on our survey, around
half of the people were about
this fact.
o Credit scores are essential for
accessing loans and financial
services in the market. We
analysed that people were
not aware of this.
o Some of the people from our
survey felt that it is related to
Credit card and some were
not at all aware of the term.
o Credit score is something
which people are not deeply
aware of. However, to
understand the markets and
even their basic repayment
abilities, we feel it is important
people become aware of it.
 CONCLUSION
o After the survey, we realized that students are still not aware about financial
literacy, not even take it as a subject.
o Most of the people have theoretical knowledge but applying the same in
our routine would still take a lot of time and efforts.
o Financial Literacy should be a subject that should be talked about more as it
is the most basic thing in daily life.
o Financial literacy concepts are put into practice by people to save , invest
and plan things according to their means, people have a fair idea about the
subject yet there are some hurdles that come in the way because of
insufficient knowledge and reliable sources.
o Majority of candidates plan a monthly budget to manage their finances and
keep a track of their expenses.
o The different ways to invest money included mutual funds, stocks, FD and
bonds. Some people even invest in gold bonds, equity and reals estate.
 CONCLUSION
o Even after so many expenses, bills and personal spendings, they manage to
save money some how by reducing unnecessary spending on shopping,
transportation, junk food etc.
o The 60:40 ratio rule would greatly help to manage finances by spending 60%
of your money and saving 40%
o In addition to all these information provided above, we should ensure the
introduction of subjects like financial literacy to educate people more about
financial instruments, savings, investments, insurances, credit card facilities,
debts, liability and assets mot only in basic college curricular but also at
school level and in our daily conversations with people from these fields.