SAVING AND INVESTMENT PATTERN OF YOUTHS

Image result for young indian spending

 

 

The majority of the undergraduate students saved for vacations, trips with

friends and for purchase of clothing items such as watches, fancy clothes

etc. this group of respondents constituted 38.8% of the total respondents.

A very few number of respondents saved funds for future needs such

higher education, home and retirement. These group of respondent were

majorly master students and students who have just started working.

 

A project report on saving & Investment Patterns of Youth 

submitted by Mr SHAHABAZ KHAN a student of BBA in Amity

University shows that youth’s need to learn techniques for early-age savings.

The Study also suggested that their should be curriculum in the course for student to

learn financial planing

 

What should be done ?

 

The Indian economy is the world’s seventh-largest economy by nominal GDP

and has achieved 6-7% average GDP growth annually. Youths constitute the

maximum percentage of population in the country and they are the backbone of

the nation and they are the one who is going to shape the future of the country.

Therefore it is important on the part of government to come up with some

policies or lucrative option for youths where they can invest their money

without any fear and strengthen the financial position of youths of the nation.

Until and unless youths are financially independent, it becomes very difficult

for them to contribute to the society. So youths should always think of 10 year

ahead and start working accordingly. Planning for own future is like giving a

hands-up to oneself. Understanding the benefit of saving and investing and

spending money wisely should be the need of each and every individual and

not want. These things can be promoted by using media where the presence of

youth is more active, i.e. Face book, Twitter, LinkedIn etc.

There should be a compulsory course of “Personal financial planning” to the

students of all the fields and should encourage them to start saving from early

stage of their life. Promoting young investor on various social media can

influence other youths to start investing. Youths need to get aware of the their

excess expenditure and should try to eliminate such expenditure.

 

 

For Further Detials Please see FULL PROJECT REPORT 

 

SAVING AND INVESTMENT PATTERN OF YOUTHS

A Major Project Submitted

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Business Administration (Gen)   

At

 

AMITY SCHOOL OF BUSINESS

  AMITY UNIVERSITY UTTAR PRADESH

 

 

 

 

DECLARATION BY STUDENT

 

This is to certify that I, SHAHABAZ KHAN , a student of BBA of 2016 -2019 Batch, Amity School of Business, Amity University Uttar Pradesh, Noida have worked under the guidance and supervision of  Mr. ARPAN SINHA for NTCC Major Project.

This report has the requisite standard for the partial fulfilment of the Bachelor of Business Administration . To the best of my knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the report.

                        

Signature (Student)    

Name of the student – SHAHABAZ KHAN

                                                      Enrollment No. – A3906416634

Batch: 2016 – 2019

 

 

 

 

 

 

 

 

 

DECLARATION BY FACULTY SUPERVISOR

 

This is to certify that Mr SHAHABAZ KHAN, Enrollment No. A3906416634, a student of BBA  in, 2016 -2019 Batch, Amity School of Business, Amity University Uttar Pradesh, Noida has worked under my guidance and supervision for the duration of the project.

The report being submitted incorporates original work and research and is being submitted as a partial fulfilment for the Bachelor of Business Administration .

 

    

 

Signature

                                                                            Name of Faculty Supervisor: Mr. Arpan Sinha

Assistant Professor

 

 

TABLE OF CONTENTS

Chapter no

Topic

Page no

 

Abstract

6

 

Introduction

7-11

 

Research Objective

12

 

Research Methodology

13

 

Scope of Study

14

 

Review of Literature

14-15

 

Analysis of Data

16-26

 

Recommendation and Suggestion

27-28

 

Limitation

29

 

Conclusion

30

 

Bibliography

31

 

 

List of Figures

Sr. No.

Topic

Page no

1.1

Importance of saving culture among youths

10

1.2

Importance of investment for youths

11

6.1

Introduction to Saving,

16

6.2

Introduction to Investment

16

6.3

Introduction to elements of Investment

16

6.4

Profile of the respondent

17-19

6.5

Saving pattern of the respondents

20-21

6.6

Purpose of saving

22-23

6.7

Factors which stops youth from making investment

24-25

6.8

Investment vehicle preferences and awareness

26

 

 

 

 

 

 

Abstract

 

Saving and investing are two different things. Saving is easier but when it comes to investing, a lot of technical skills are required which can become a barrier for few people to make decisions related to investment. The primary objective of the study was to  understand the saving, spending and investment habit of youths and to know about the factors which influenced decisions related to investment and factors which stopped youths from making investment.  Many bachelor  students from well-off family  don’t have a habit of saving and making investment because at this stage they are not aware and not interested enough to think about their future because of the financial freedom provided to them by their parents. Where as in-case of middle class family, it is very difficult to save and even after saving individuals don’t want to take any risk with their money.  The study was conducted on individuals from various field(marketing, finance, hr), primarily undergraduate BBA students and master students from Amity University and a few working individual. To collect the data, a structured questionnaire  was personally administered to the respondents. The questionnaire constituted 10 items. In this study, data was analysed using frequencies, percentages, factor analysis techniques.

The other aspect of the study was to know how well are these people aware to the various investment alternatives. From the research, it was found out that the most important factors that  stopped individuals from making investment was lack of knowledge and skilled required for investing and then it was the risk which comes along with different investment avenues. From the research, it was found out that, the main purpose for the saving was for “emergency” and then savings for “trips, purchase of items” and a very few saved for the purpose of investment.

 

 

Key Words: Saving and Investment habit, Investment practices, Behavioural

 

    I.    Introduction

 

“Investing isn’t about saving money, it’s about making money from what you have saved” a quote given by the greatest investor of all time Warren Buffett has influenced many individuals to save and invest and be able to give oneself financial freedom. Similarly, making a habit of saving from early stage of life is very important and along with that acquiring the knowledge for investing helps a lot to creation of wealth. In context of youths in INDIA, the habit of saving and investing has changed drastically, the main reason being westernization and increased purchasing power.

 

After completion of higher school i.e. 12th standard, many students travel to different cities and states for their higher studies. Until 12th standard, students only get limited amount of money and mostly only when required by them. When individuals move to other cities for their higher studies, they start getting more money because they have to manage a lot of things i.e. food, travelling, hostel stay, and other basic needs. At the initial stage, for few months it becomes difficult for them to manage things and to identify and calculate their monthly expenses. Parents usually give a little more money to their wards than what is required for many purposes such as emergency funds, extra usage etc. After few months, students come to know about their expenses but many of them don’t analyse whether the expenses incurred by them could be reduced or not, or simply could they save from their pocket money.

 

The concept of westernization has changed the life style of youths whether be the diet, social life, their spending habit or relationship. Youths now days spend more on branded clothes , entertainment, clubbing and fast food.  The change of life style is seen more in youths from developed cities such Delhi, Bangalore, Mumbai etc. A decade ago, their weren’t much things to explore for youths as we see now days. The pace with which westernization has gained acceptance among the youths of India is much higher as compared to other neighbouring countries like Nepal, Bhutan, Pakistan, Sri-Lanka and Bangladesh. Youths now a days are more concerned about having electronic accessories(iphone, ipods, laptops, air pods), wearing branded clothes, followers on social media and their social life and are less worried about their studies and future goal.

An individual from a well-off family or business background will be least bothered about saving and their expenses are also high and in some cases they act as prodigal. In friendship and bad company many bachelors have ruined their life and the main reason being not able to utilize their money properly and act wisely. In big cities such as Delhi(NCR), Mumbai, Bangalore etc, there are many things to explore and students are very curious and in friendship they explore most of the things. Most of the students don’t realize the need for saving and investing and there are many factors for this.

 

For an individual from a middle class family, his expenses are far less as compared to the individuals from business background. Their spending is also very much calculative. Bachelors from middle class family have very little expenses and most of them spend money wisely. Comparing the expenditure of a bachelor from a business background and from a middle class background, we can clearly identify where the gap is,

  • Going for movies frequently
  • Going to parties
  • Clubbing
  • Trips, vacation
  • Tobacco
  • Fast food
  • Shopping

 

The main motive behind identifying this gap was to know about the “difference between NEED and WANT” . A study shows the following budget plan for individual with mind-set for investing and an individual without a goal for investment

Basis

Investors

Normal people

NEED

25%

40%

WANT

10%

55%

INVESTING

65%

5%

 

Warren Buffet started investing at the age of 11 and today he stands in the world top 5 richest person. The goal is to start acquiring knowledge

The main thing that needs to be understood is that, one needs to know well about their basic  need and wants. Developing a habit of spending after saving is very much important rather than developing a habit of saving after what is left after spending. So the primary motive is to create awareness about the difference between the “need and want” and to encourage them to start saving and investing.

 

Youths need to cultivate the habit of spending rationally and should always have a mind-set for investing. It is very much important for youths to understand the difference between needs and wants and should manage their money wisely. In context of INDIA we can see that youths depend on their parent till the age of 25 and in some cases even more. Even after completion of higher studies, youths depend on their parents and their relatives for financial support to start their venture.

 

    1.    Importance of saving culture among youths.

 

Saving is not only about managing money or spending less but also understanding the difference between need and want. Almost everyone in their childhood must have a piggy bank and when there was a need of money, most of them have happily broken their piggy bank. Saving as always given a sense of accomplishment. It is very much practiced in the Indian society. With the passing time, the purchasing power of people have increased and so it’s the expenditure. The acceptance of western culture among the new generation has led to increase in their expenditure because of the change in their life style such as fast-foods, fashion, clubbing , movies and many more.

 

Youths need to understand the importance of saving in their life. The future is very uncertain and to be well prepared for future, one needs to start from their present. “The best way to get ahead is to get started” , keeping this in mind, youths should develop a habit of saving from early stage of their life,

 

  • Save for emergency- One needs to always have a financial backup for their future. Depending on others for future emergencies isn’t going to cut.

 

  • Save for future needs(trips, purchase of small goods)- Saving is always considered to be a good and productive habit. Saving at an early stage of life also shows how matured and responsible a person is. Youths should be able to take care of their little expenses themselves. This also gives a sense of accomplishment among youths.

 

  • To start an enterprise- Graduate students who want to start their own entrepreneurial activity, for them it is more necessary that they start saving from seed stage so that they don’t need to heavily depend on external investors or friends.

 

  • When an individual develops a culture of saving, then he/she is able to understand the difference between their needs and wants and will try to reduce his/her expenses and spend wisely.

    2.    Importance of investment for youths.

 

Investment of time, money and energy are important for the growth, development and sustainability of an individual. It is never too late for investing  and never too early for investing. With every part of our investment we are acquiring some knowledge, whether we make some profit or loss. So it is very much important for youths to realize the value of investing at early stage of life.

  1. In present scenario we can see that, there is a lot of struggle for job. So investing at early stage and securing our future is in our hand. The main things that needs to be done is to take initiative. Saving on daily, monthly basis will add value or wealth and this habit of our own will give us a sense of accomplishment.

 

  1. India today stand as one of the fastest developing nation. This is because many youths have started their own enterprise and the concept of entrepreneurship(providing employment, CSR, filling the gaps etc) has gained acceptance in every society. So for the youths, later to start their own business it becomes very supportive to them, if they start investing at early stage.

 

  1. The next important reason why youth should invest is because they need to be independent after few years and start earning on their own. So investing at early stage will act as a source of income and they don’t need to be dependent on their guardian for small expenses.

 

  1. When investing money into any kind of financial instruments, there is always going to be a risk. In order to minimize that risk , it is important that one needs to know where he/she is investing and for that they need to acquire the knowledge. So, investing into various financial avenues provides the opportunity to learn about various new things and keep oneself updated about the financial market.

 

 

    II.    Research Objective

 

The research aims to achieve the following objectives.

  1. Primary objective

 

To study the saving and investment habit of youths and factors which stops youths from making  investment.

 

  1. Secondary objectives

 

  1. To study the reason behind individual selecting certain investment avenues.
  2. To study the saving goals of youths.

    III.    Research Methodology

 

    1. Source of Data

The study is base on primary data which was collected using questionnaire method covering questions regarding the saving and investment  behaviour among youths. Personal interview was also conducted with some of the respondent.

 

    1. Sample Size

Youths from various background such as undergraduate, master’s level , working professionals were taken thus achieving a total population size of 260.

 

    1. Data Collection

The data was collected using questionnaire in college and referrals. The questions were designed to know about the saving and investing habit of youths and to know about the various factor which stopped youths from making investment. The questionnaire included both open ended and closed ended questions to get answers of the objectives laid down in the study.

 

    1. Sample Unit

The research was conducted in Amity University. Three major groups i.e. undergraduate, master’s and working people were studied. Convenience Sampling was used for the collection of data.

    IV.    Scope of the Study

 

The scope of the study is restricted to the survey of collage going students and recently placed youths with respect to their pocket money and earnings and their saving and investment pattern.

 

 

  1. Literature Review

 

It is seen that youths in INDIA are driven towards western life style, whether it is diet, social life or relationship. These changes in their life has a lot of impact on their saving and spending habits. Thus this paper is a healthy insight for youths to understand the importance of saving and investment at an early stage of their life.

 

Saving and investment habit of youths in Amity University were studied and factors which stopped youths from investing were addressed. The youths referred to here are of the age group 18-30. The spending habit among youths in INDIA is very much different despite most of the youths are dependent on their parents up to the age  of 25-26.

 

In 2009, when economic recession hit everywhere throughout the world, the analysts were quick to think about the ways of managing money and responses of teenagers towards the retreat. 75% of adolescents carried on similarly and spent similarly as they were spending in the earlier year. The exploration consequences of seven nations including India demonstrated that, youngsters are fundamentally concentrating on putting something aside for three things for example clothing (57%), College (54%) and a Car & accessories(38%) [Meredith, 2009]. It was additionally called attention to that the youthful age once in a while rehearsed essential money related abilities, for example, planning, building up an ordinary investment funds plan or making arrangements for long haul prerequisites. [Rajasekharan Pillai , 2010]

 

Jospal Singh (2006)65 in his study titled “A Study about the perception of Small Investors”, found that among various avenues of investments, the mutual funds obtained the lowest preference by most of the investors.

 

Gaurav Kabra et.al (2010)91  carried out a study “ Factors Influencing Investment Decision of Generations in India: An Econometric Study” the study aimed to gain knowledge about key factors that influence investment behavior. The study concludes that investors‘ age and gender predominantly decides the risk taking capacity of investors.

 

Abhijeet Birari & Umesh Patil (2014) studied the spending and savings habit of youth in the city of Aurangabad. The study finds that significant difference exists in the spending habits of students belonging to different education levels. Most of the youth spend a large portion of their money on consumable goods and entertainment and due to lack of awareness, the amount of money saved or invested is very little.

 

Deshpande and Zimmerman (2010) investigated the capability of Youth Savings Accounts (YSAs) as a fundamental intercession in youth advancement and money related incorporation. The paper finds that the most ideal approach to empower youth funds and resource aggregation is by offering major budgetary motivating forces to kick off the reserve funds process. The paper discovered proof that adolescent funds may can possibly be a high influence intercession, with beneficial outcomes on youth advancement and money related consideration.

 

From the review of literature it can be inferred that various studies on investment pattern and preferences provide only glimpses of investment pattern of youth. Very few studies have been conducted on the saving habit of youths and on the factors which stops youths from making investment.

    VI.    Analysis of Data

 

In this study, the main focus has been put to the saving habits of youths and the on the factors which stops youths from making investment into financial assets. Before proceeding to the analysis of the findings, it is pertinent to know about the different terminologies of saving and investment used in the survey.

 

    1. Saving-“Saving” means foregoing one’s current consumption in favour of having an option to consume more in the future. Savings if properly utilized can help trade and commerce prosper. Financial savings are more liquid and hence more easily mobilized than physical savings. The current study covers financial savings as they are more relevant to undergraduate students getting pocket money and students who have just started earning.

 

    1. Investment- Investment means utilizing the saved money to purchase some financial assets with the hope that it will offer better return and  to beat the inflation.

 

    1. Elements of Investments

 

  1. Return: Investors buy or sell financial instruments in order to earn return on them. The return includes both current income (current yield) and capital gain (capital appreciation).

 

  1. Risk: Risk is the chance of loss due to variability of returns on an investment. In case of every investment, there is a chance of loss. It may be loss of investment; however risks and returns are inseparable.

 

  1. Time: Time is an important factor in investment. Time period depends on the attitude of investors who follow a ‘buy’ and ‘hold’ policy.

    III.4.    Profile of the Respondent

 

  1. Age-The age of the respondent have been shown in the Figure -1. Most of the respondent in the survey conducted are of age group 26-28 and the second highest we have youths between age 20-22. As stated in earlier, the target group for the research were the undergraduate BBA students and master students and students who have just started earning.

 

 

Figure 1

 

  1. Occupation-The next element of the questionnaire was about the occupation of the respondent. 40.4 of the respondent were students and 38.1% of the respondents were youths who just started to earn from their enterprise or business. 15.4% of the respondent belonged to profession working sector such as engineer, CA etc. very few of the respondent belonged from govt sector.

 

 

Figure 2

    c)    Monthly Income(pocket money)- In case of undergraduate students, information regarding their pocket money has been taken. From the figure-3, it is clearly seen that undergraduate students have their pocket money between 10000-20000. Cases where the pocket money is below 10000, it was found that these students stay in hostel. Students from business class back ground has their pocket money between 20000-50000. These are the major target group which needs to realize the importance of saving and investing.  Respondents who earned more than 50000 were youths who had just started to earn and very few earned more than 1 lakh and most of them belong to the age group 26-28.

 

 

              Figure 3

 

    d)    Monthly expenditure- After studying about the monthly expenditure, there was a lot of variance in the amount spend by the youths. Only 12.6% of the respondent had their monthly expenditure below 5000 and in contrast to this, there were youths who had monthly expenditure above 20000 and in some cases up-to 50000. This huge difference in the monthly expenditure of the youths mostly varied because of the life style of the youths and adoption of the westernization.

 

After some personal interview with the respondents who  had their monthly expenditure above 30000, it was very much clear that the reasons for such a huge expenses were movies, parties, fast foods and for some it was tobacco and alcoholic beverages.

 

 

The study primarily focuses on these individuals who act as spendthrift and don’t spend their money wisely. Youths who have just started to work and are earning good amount are not aware about the importance of saving and investment for their future. Adoption of the western culture such as going to restaurants and café for  dinner every day has increased the expenses of the individual. Youths should developed a sense that “ every single penny saved is a penny earned”.

 

 

 

Figure 4

 

    IV.5.    Saving pattern of the respondents

 

The sample data revels that 81.2% of the respondent saved their money on monthly basis. 10.3% of the respondent  didn’t save any money from their income. Figure 5 shows that around 6% of the respondent saved their money on random basis. Respondents who saved their money on random basis were youths had huge expenses. They only saved after what is left after spending.

 

 

         Figure 5

 

 

 

 

Figure 6 below shows that 8.4% of the respondent saved between 0-500 from their pocket money. On personal interview with these respondents, it was found that they were student who stayed in hostel and most of them were the individuals who don’t save at all.

The maximum  saving among all respondent was around 15000. These were the students who have just started working and the total percentage of these group of respondents was around 5%. Around 23.8% of the respondent saved between 6000-10000 and these group represented master student and some working professionals.

Some of the youths who had developed a habit of saving, saved around 3000-6000 on monthly basis. These group of respondent were later found that, they were into investment also.

The remaining group i.e. 25.3% of the respondent saved after what is left after spending and they had no motive behind their savings. From the personal interview it was found that the amount which was left at the end of month varied because of their irregular spending habit.

 

 

 

Figure 6

    IV.6.    Purpose of saving

 

Figure 7 shows the purpose of saving for the target group. 41.2% of the respondent  saved funds for emergency purpose. Saving for emergency has always been the first priority for the Indians parents and the same habit is seen in mature and responsible youths. No one is certain about their future so the mindset of saving funds for emergency has always been helpful to individuals.

 

The majority of the undergraduate students saved for vacations, trips with friends and for purchase of  clothing items such as watches, fancy clothes etc. this group of respondents constituted 38.8% of the total respondents. A very few number of respondents saved funds for future needs such higher education, home and retirement. These group of respondent were majorly master students and students who have just started working.

 

 

          Figure 7The main objective of this questionnaire was to find out what percent of the target group saved money for the purpose of investment and it was found that only 11.5% of the respondent saved money for the purpose of INVESTMENT into various financial instruments. The majority of the respondents who saved money for the purpose of investment were finance students and MBA students. This study clearly revels that very few of the youths are aware about the different investment avenues. Most youths in India don’t have a habit of investing in capital market and the reason being lack of risk bearing capability and lack of knowledge about the capital market.

 

In developed countries such as USA, Australia and European countries, the government encourages its citizens to invest in various investment avenues such as mutual funds, equity market, systematic investment plan, life insurance etc. the government provides financial advisors so that  individual can decide the best alternative for them. But in context of our country INDIA the effort taken by government is very less and because of which the general public shows less interest in the capital market. The government should have a special policy or financial plan for youths where they can invest their saved money and assure them less risk and high return. This way, the youths will be motivated to invest their saved money and even promote individuals in their friend circle to invest.

    IV.7.    Factors which stops youths from making investment.

 

The chart(8) below shows the various reason which stops individual from making investment into financial instruments. Most of the respondents (40.2%) hesitated from making investment into financial instrument because of lack of knowledge and skills required for making investment.  It is very much important for any investor to know where he/she is investing his/her money and should know the basic of investment.

 

The second most important factor which stopped respondents  from making  investment was the risk associated with the investment avenues. 32.6% of the respondent were afraid to invest or didn’t invested because of the risk which comes along with the investment avenues. But it is important to understand that risk lies in each and every field and there are financial instrument where the risk is reduced to almost 0% such as fixed deposits, PPF etc. until and unless one does not enter into the financial market, they want be able to know about the various scope of investment. The best way to get ahead is to get started.

 

Among all the respondents only 24.5% of them had no interest in investment. After conducting personal interview with these respondent, some of them had no answer at all for their reason being lack of interest . Some of the respondent literally had never thought of investment.

 

Only 3% of the respondent lack awareness of the various investment avenues. These respondent mainly belonged to field other than finance and were 1st year students. It is seen that, though majority of the respondent  do know about the various investment alternatives but still don’t invest, the main reason being lack of habit of saving and spending recklessly.

 

 

 

 

Figure 8

 

 

It is very much important for youths to understand that saving at early stage of their life is like planting a tree and investing  is like providing nutrients and water to that tree and when the times comes the owner can pick up the fruit from the tree.

    IV.8.    Investment vehicle preferences and awareness

 

Fixed deposit was the most opted and the most known investment vehicles among the respondents followed by mutual funds and then equity market. Very few of the respondent knew about the systematic investment plan(SIP) and ELSS because most of them were students and very few were working people. Only 2.7% of the respondents were not aware of any investment vehicle.

 

 

 

The data simply points out that maximum  respondents preferred investment in fixed deposit because of zero risk. There were few people who invested in mutual funds and capital market. These people were from the finance background and had exposure of the financial market. SIP still hasn’t gained much popularity  among youths. There are other more investment vehicles but the reason behind having these investment vehicles is that, these are the general and the most common type of investment avenues.

 

 

    VII.Recommendation and Suggestion

 

Many people do want to get rich and have abundant cash and wealth, but not everyone have what it takes to become a millionaire. Although people do know that saving is a good habit but still many of them are not being able to save, the main reason being not able to understand the difference between need and want. Life of human being is very much uncertain and hence it is very much necessary to be well prepared in advance to deal the uncertainties’ of the future. Now just saving and keeping it idle is not sensible and is not going to increase on its own. The value of money decreases with the passing time, so it is necessary to invest amount so that we can beat the inflation.

 

Out of this need, there are various financial instrument which have gained immense popularity among common people. The risk bearing capacity of each and every individual is different and depends on many factors such as age, wealth, perception and beliefs. Today everybody want to become independent and have financial freedom in their life. So understanding the value of time and utilization of that time is very much important. Throughout the study the main focus is on encouraging youths to start saving and investing at early stage of their life.

 

Who doesn’t think of becoming financially independent and be able to achieve all  the desires and wants and have a peaceful mind. In order to achieve these things, one needs to act quickly and wisely. It is therefore very much important for youths to realize that saving and investing at early stage of life is like giving wings to ourselves, and the when times comes we can overcome any circumstances and fly high. Wealth is not accumulated at once, it is earned over a period of time. In the initial days of investment we may not be able to earn large amount  but with the passing time and with the earning reinvested, we can earn a higher amount in the future date.

 

Patience is very much important for investing and at the initial stage of investment its is important to understand that one needs to invest with the objective of gaining knowledge and not with the purpose of earning.

Various tips for saving money has been provided, and the only area where  youths have been lagging behind is realization for the need of saving. Some of the easiest ways for saving money for youths:

 

  1. Collecting loose change and depositing in piggy bank.

 

  1. Purchasing clothing products based on the need and not going after brand.

 

  1. Have a no spending week.

 

  1. Purchase things wisely and compare among the alternative products.

 

  1. Going less to movies, clubbing and parties.

 

  1. Stopping of activities such as using tobacco, alcoholic beverages.

 

The youth should think wisely before spending the money and should be more aware about various savings and investment avenues available in the market.

 

    VIII.Limitation

 

  1. Sample size of 260 is a limitation; the findings may differ with higher sample size.

 

  1. Sample unit and the city can be a limitation as the spending habit may differ in Metro city, Tier 2 and semi urban areas.

 

  1. Only educated group is targeted here. The analysis may vary if the uneducated youth i.e. those living in slum or are poor are considered.

 

  1. The information given by the respondents might be biased because some of them might not be interested to give correct information.

 

 

 

    IX.    Conclusion

 

The Indian economy is the world’s seventh-largest economy by nominal GDP and has achieved 6-7% average GDP growth annually. Youths constitute the maximum percentage of population in the country and  they are the backbone of the nation and they are the one who is going to shape the future of the country. Therefore it is important on the part of government to come up with some policies or lucrative option for youths where they can invest their money without any fear and strengthen the financial position of youths of the nation.  Until and unless youths are financially independent, it becomes very difficult for them to contribute to the society. So youths should always think of 10 year ahead and start working accordingly. Planning for own future is like giving a hands-up to oneself. Understanding the benefit of saving and investing and spending  money wisely should be the need of each and every individual and not want. These things can be promoted by using media where the presence of youth is more active, i.e. Face book, Twitter, LinkedIn etc.

There should be a compulsory course of “Personal financial planning” to the students of all the fields and should encourage them to start saving from early stage of their life. Promoting young investor on various social media can influence other youths to start investing. Youths need to get aware of the their excess expenditure and should try to eliminate such expenditure.

    X.    BIPLIOGRAPHY

 

  1. Manish Mittal and R. K. Vyas. (2007). Demographics and Investment Choice among Indian Investors. IUP Journal of Behavioural Finance.

 

  1. Manish Mittal and R. K. Vyas. (2007). Demographics and Investment Choice among Indian Investors. IUP Journal of Behavioural Finance.

 

  1. Jospal Singh, ―A Study about the Perceptions of Small Investors‖, Journal of Management, June 2006,p.34.

 

  1. Rani Deshpande & Jamie M. Zimmerman. (2010). Youth Savings in Developing Countries. Trends in Practice, Gaps in Knowledge.

 

  1. GauravKabra , Prashant Kumar Mishra and Manoj Kumar Dash ‖ Factors Influencing Investment Decision of Generations in India: An Econometric

 

 

  1. Jaakko Aspara, Henrikki Tikkanen. (2011). Journal of Behavioural Finance. Individuals’ Affect-Based Motivations to Invest in Stocks: Beyond Expected Financial Returns and Risks.

 

  1. Murithi Suriya S, Narayanan B, Arivazhagan M. (2012). Investors Behaviour in Various Investment Avenues – A Study. International Journal of Marketing and Technology.

 

  1. Yogesh P. Patel & Charul Y. Patel. (2012). A Study of Investment Perspective of Salaried People.

 

  1. Abhijeet Birari & Umesh Patil. (2014). Spending and Savings Habits of Youth in the City of Aurangabad.

 

  1. The Times of India (2007), ―Indians Spend More on Clothes, Mobiles‖, http://timesofindia.indiatimes.com/Business/India_Business/In dians_spend_more_on_clothes_mobiles/articleshow/1982174.c ms.

 

 

ANNEXURE

 

Questionnaire

"An investment in knowledge pays the best interest." - Benjamin Franklin.

Do not save what is left after spending but Spend what is left after saving.

 

The following questionnaire is prepared to find the saving and investment pattern of people of age group between 18-30. This is the age where people are generally into colleges, universities, job and some are in search for settlement.

Students become independent as they move to different cities, stay in PG or flat. They get money from their parents mostly on monthly basis. At this stage their expense also increases, and most of the students don’t spend money wisely. Students don’t realize the importance of making a habit to save and they are not aware of the various financial instrument where they can invest their savings.

The following questionnaire has been prepared to study about the  income and expenditure of the people of age group between 18-30, where most of them are into college, universities, jobs and to understand the motive behind their saving and to know how familiar they are towards different investment avenues.

 

  1. Name

 

  1. Age
  1. Below 18
  2. 18-30
  3. 30-40
  4. 40 and above

 

  1. Occupation
  1. Student
  2. Government employee
  3. Businessman/Entrepreneur
  4. Professional (Doc,Engg,CA,Teacher)

    4.    Monthly income(pocket money in-case of students)

  1. Below 10000
  2. 10000-20000
  3. 20000-50000
  4. 50000-100000
  5. 100000 and Above

 

  1. Monthly expenditure
  1. Below 5000
  2. 5000-10000
  3. 10000-20000
  4. 20000-50000

A piece of Knowledge.

Investing isn’t about saving money, its about making money from what you have saved.

 

  1. How often do you save money.
  1. None
  2. Weekly
  3. Monthly
  4. Quarterly
  5. Random savings(only when needed)

 

 

  1. How much do you save from your income, pocket money.
  1. 0-500
  2. 500-1500
  3. 1500-3000
  4. 3000-6000
  5. 6000-10000
  6. 10000 and above

    8.    Your purpose of saving.

  1. Save for emergency funds
  2. Save for vacation, new cars or luxury items
  3. Save for future needs(higher education, home, retirement)
  4. Save for INVESTMENT
  5. Tax saving

 

  1. What stops you from making investment in financial instruments(equity, mutual funds, any other)
  1. Lack of knowledge and skills required for making investment
  2. The risk which comes along with different investment avenues.
  3. Lack of awareness about the different investment avenues
  4. Lack of interest.

 

  1.     10.Which of the  following investment avenues are you more aware-of and have knowledge of.
  1. Mutual Funds
  2. Equity market
  3. Fixed deposit
  4. SIP(systematic investment plan
  5. ELSS
  6. None

 

 

 

   

 

 

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