A Study On Saving and Spending Habit of Youth

A Study on Spending and Saving Habit of College Students.
A STUDY ON SPENDING AND SAVING HABIT OF COLLEGE

STUDENTS
Dissertation submitted to Mahatma Gandhi University, Kottayam in the
practical fulfilment of the requirement for the Degree of Bachelor of Commerce
PROJECT REPORT
SHAMNAS SHAJI
VIPIN REGHUNATH
VISHNU CHANDRADATHAN
Final Year B.Com
Under the guidance of

Ms. RINTU JOSE
DEPARTMENT OF COMMERCE
NEWMAN COLLEGE THODUPUZHA
(Reaccredited by NAAC with A Grade)
MARCH 2016
INTRODUCTION
With the revolution in the retail sector in India and advent of mall culture,
the spending and saving habits of youth have changed over the years. An over
exposure to marketing communication activities of the companies, the youth has
turned to be more brand conscious and also spend a considerable amount of their
income on entertainment and gadgets. With the increase in spending power of adults,
even the young have become free-hand spenders and spendthrifts in some cases. This
study address the question of why, where, and how the youth spend? The youth
referred to here are college students in under graduation and post graduation. The age
group of 15-25 years is that part of the society which is immortalized in
advertisements. The west depicts this youth as financially and emotionally free, but in
India the case is not the same. Despite being financially dependent on the parents till
about an age of 15-25 years, there is a radical difference observed in the spending
behaviour of the youth of our country.
Youth savings accounts are one tool with the potential to encourage both youth
development and financial inclusion possibly even in a financially sustainable way.
For individuals, a financial cushion such as savings is clearly useful in mitigating the
impact of economic shocks. Research has shown that making formal sector savings
accounts available can boost this financial cushion among both youth and adults.
Research and experience to date suggest that savings accounts for low-income youth
may be a high-leverage tool to achieve both youth development and financial
inclusion objectives.
The study has been undertaken to analyses the spending and saving habit of college
students especially in Newman college Thodupuzha. The main reason behind the
study is the youth spend more than their income and saving habit is declining. This
study shows the various spending and saving avenues for youth and how they
maintain their financial requirements with limited income and high expenses.
STATEMENT OF THE PROBLEM

With cultural shift to westernization in India and advent of mall culture, the spending
and savings habits of the students have changed over the years. Youth has started to
spend more money on entertainment and lifestyle and has become more brand
conscious. With the increase in standard of living of adults, the young have also been
empowered with more money and have got more spending power. Similarly the
saving habit in youth is drastically declining over the years. This paper is an attempt to
study the spending and saving habit of undergraduate and postgraduate students in
Newman College, Thoupuzha.
SIGNIFICANCE OF THE STUDY

The spending and saving habit of college students is a relevant topic in this current
scenario because the income of students is very low and expenses are very high. It is
important to study that how will they manage their expenses with their limited
income. The studies proves that savings in students is declining. This study is
conducted to understand the various spending patterns of college students specifically;
the spending patterns of male students were compared to the spending patterns of
female students. The post graduate students and under graduate students are separately
studied.
OBJECTIVES OF THE STUDY
To study the spending pattern of two groups (graduation, post graduation)
To study the avenues of savings practiced by the youth today.
To study gender wise spending of the students.
SCOPE OF THE STUDY

The scope of the study is restricted to the students studying in Newman College
Thodupuzha. Both arts and science students in undergraduate and postgraduate level
are considered for the survey.
RESEARCH METHODOLOGY
This study is based on primary as well as secondary data, however primary data
collection has given more importance since it is overhearing factor is students
attitude. The population studied here is the under graduation and post graduation
students in Newman College Thodupuzha. The research is analytical and tool used for
data collection is structured questionnaire.
Primary Data A questionnaire was prepared and the primary data was
collected through survey method.
Secondary Data Web sites, Publications.
Sample Size - The population being large the survey was carried among 100
respondents. They will be considered adequate to represent the characteristics
of the entire population.
Sampling procedure - Convenient Sampling
Sampling Technique Convenient Sampling
Sample Size 100
Sample Design Data has been presented with the help of bar diagram, pie
charts etc.
LIMITATIONS OF THE STUDY
The study is limited to the 50 undergraduate and 50 postgraduate students in

Newman College Thodupuzha.
An interpretation of the study is based on the assumption that the respondents

are given correct information.
Besides, the study has the limitation of time, place, and resources.
CHAPTERISATION
The present study A Study on the Spending and saving habit of College Students is
organized and presented in various chapters.
The first chapter contain introduction, statement of the problem, significant of the
study, research methodology, limitations and chapter scheme.
The second chapter deals with the theoretical framework, which contain details about
various spending and savings avenues for youth
The third chapter consist of findings, suggestions, recommendations and conclusion.
A questionnaire is also included at last in Appendix.
CHAPTER 2
SAVING AVENUES
1, BANK DEPOSIT
The most important function of bank is to accept deposit from the public. Through this
function banks pools together the scattered savings of the society for being used for
productive purposes. The various types of deposits accepted by banks form a good
avenue of investment to customers. The different types of deposits by a commercial
bank are:
1) Fixed Deposit or Time Deposit.

In the case of fixed deposit, money is deposited for a fixe period of time and can be
withdrawn only after the expiry of the period. The rate of interest on this type of
deposit is higher as compared to other type of deposits. At the time of making FD, the
bank issues a receipt to the depositor known as fixed deposit receipt. It contains the
amount deposited, the name of the depositor, rate of interest, and maturity date. It has
to be surrendered to the bank on the due date for getting back the deposit amount
together with interest.
Key features
Involves placing funds with the bank for a fixed term (not less than 30 days)
for a certain stipulated amount of interest.
The ideal investment time for bank FDs is 6 to 12 months as normally interest
on bank less than 6 months bank FDs likely to be low.
The time frame assumes importance as early withdrawal may carry penalty.
2) Current Deposit or Demand Deposits

Current deposit are those deposits into which money can be deposited any number of
times and form which money can be withdrawn as many times as the depositor wants.
These accounts are usually maintained by traders and business men who have to make
number of payments on a single day. Current deposit s are payable on demand and
hence are called demand deposits. Very low rate of interest only is paid on these
accounts and hence it cannot be considered as an investment.
3) Saving Deposits
In the case of saving deposits, customers can deposit any amount of money at any
number of times. But certain restrictions imposed on the number of withdrawals.
Cheque facility is provided to the saving depositors. Currently interest is calculated on
the daily balance available in the account.
Key features
Often the first banking product people use.
Low interest however, high liquidity
Suitable for inculcating the habit of saving among customers.
4) Recurring Deposits
In the case of recurring deposits or RD, a fixed sum of money is invested every month
for a predetermined period. The rate of interest on these deposits is almost the same as
that of FD. The period for which such a deposit is opened varies between one year to
ten years. On maturity the depositor gets back the amount deposited together with the
interest accrued.
7
Key features
Some fixed amount is deposited at monthly intervals for a pre-fixed term.
Earn higher interest than savings bank account
Helps in the saving of fixed amount every month.
2, POST OFFICE SAVING SCHEME

Post office saving scheme provides a safe or risk free and attractive savings for small
investors. Since post offices are spread all over the country, post office savings are
ideal saving avenues, particularly to small investors with limited income. There are
about 155000 post offices across the country from which various the products offered
by the postal department suiting the investment requirements of the customers can be
purchased. The following are the major saving schemes offered by the Indian Postal
Department.
1) Savings Bank [SB] account

The savings bank account facility offered by Indian Postal Department is on similar
lines with that of the SB account of commercial banks. The post office saving bank is
the oldest and one of the largest banking system in the country, serving the investment
needs of both urban and rural people. The post office SB enables the account holder to
make regular deposit and withdrawals from the account. Cheque facility is also
available in this account. Tax benefit is another important attraction because interest
on post office saving bank is absolutely tax free.
2) Recurring Deposit [RD] account

This is a five year monthly investment option which offers a higher annual interest.
Deposits of small denominations are possible without any maximum limit. At the end
of five years there is an option to extend the account period for another five year to
year basis. Insurance cover facility is also available with some conditions.
8
3) Time Deposit [TD]

This is a fixed deposit option for period ranging from one to five years with facility to
draw yearly interest offered at compounded rates. Interest is payable annually but
calculated quarterly. The interest rate ranges from 8.2 percent from one year deposit to
8.5 percent for that of five years. There is a facility for automatic credit of interest to
SB account. The minimum amount of deposit is Rs 200 and multiples thereof. There
is no maximum limit for the amount of deposit. Investment in TD is eligible for tax
benefit under section 80C.Only individual can open TD account. Group accounts and
institutional accounts are not permissible.
4) Monthly Income Scheme (MIS)

The MIS is a safe and sure way to get regular monthly income. This scheme offers an
opportunity for fixed investment for five years with monthly interest payment facility.
The facility for automatic credit of interest to SB account available. It is especially
suitable for retired employees, senior citizens, etc. The rate of interest is 8.50 percent.
The minimum amount of deposit is Rs 1500 in both single and joint account.
3, CHIT FUNDS
A Chit fund is a kind if savings scheme practiced in India. A Chit fund company is a
company that manages, conducts, or supervises a chit scheme. It is regulated by
provisions of Chit Fund Act, 1982.
According to Sec 2(b) of the Chit Fund Act, 1982, Chit means a transaction whether
called chit, chit fund, chitty, committee, kuris or by any another name by or under
which a person enters into an agreement with a specified of persons that every one of
them shall subscribe a certain sum of money (or a certain quantity of grain instead) by
way of periodical instalments over a definite period and that each such subscriber
shall, in his turn, as determined by lot or by auction or by tender or in such other
manner as may be specified in the chit agreement, be entitled to the price amount.
Why People join in chit funds?

Easy to join as there is no formalities needed.
High promised return
Option of small deposit
High liquidity
Door to door collection by the agent
Kinds of Chit Funds in India

There are three kinds of chit funds in India
Chit funds run by State Governments like Kerala State Financial Enterprises
(KSFE) and Mysore Sales International Ltd and PSU runs chit funds.
There are registered chit funds which are run by big business houses and are
registered.
Unregistered chit funds, which are run on the basis of friendship and close
proximity of the members.
10
CHAPTER 3
ANALYSIS AND INTERPRETATION OF DATA
GENDER WISE CLASSIFICATION OF RESPONDENTS
Table 3.1
UNDER
GRADUATION
POST
GRADUATION
MALE
FEMALE
13
37
43
Figure 3.1
45
40
35
30
MALE
25
FEMALE
20
15
10
5
0
UG
PG
INTERPRETATION:
The study is conducted in UG and PG level. In 13 male students and 37 female
students and in PG 7 male students and 43 female students are taken for the study.
11
EDUCATION WISE CLASSIFICATION OF RESPONDENTS
Table 3.2
UNDER
50
GRADUATION
POST
50
GRADUATION
Figure.3.2
POST
GRADUATION
50%
UNDER
GRADUATION
50%
INTERPRETATION:
For this study 50 UG students and 50 PG students are taken.
12
SOURCE OF INCOME
(EDUCATION WISE)
Table 3.3
Source of Income
UG
PG
Total
Pocket Money
38
40
78
Scholarship/ Grant
21
11
31
Job (Part time/ Weekend)
Others
11
17
Figure 3.3
40
35
30
25
20
15
10
5
0
UG
PG
INTERPRETATION:
From the above graph it is evident that about 57.78% of income of student is from
pocket money. And of 23.7% is from scholarship and Grand. Here 6% of incomes
from part time or weekend job and that of 12.6 % income from other sources.
13
SOURCE OF INCOME
(GENDER WISE)
Table 3.4
Source of Income
Pocket Money
Scholarship/ Grant
Job (Part time/ Weekend)
Others
Male
Female
Total
19
59
78
(59.375%)
(57.28%)
(57.78%)
26
32
(18.75%)
(25.24%)
(23.7%)
(12.5%)
(3.89%)
(6%)
14
17
(9.37%)
(13.6%)
(12.6%)
Figure 3.4
Others
Job(part time/ weekend)

Female
Male
Scholarship/Grant
Pocket money
0
10
20
30
40
50
60
INTERPRETATION:
About 78% of students get their income through pocket money. 59% male students
have pocket money. Among females, their majority source of income is pocket
money. 12.5% male students do part time job to earn money. Only 4 % female
14
students do part time jobs. 18% males get money through scholarships and grant and
25% of girls get scholarships and grants.
AMOUNT OF MONEY GETTING PER MONTH

(EDUCATION WISE)
Table 3.5
Class
UG
PG
Total/ Percentage
<500
31
27
58
500 1000
12
12
24
1000 2000
13
>2000
Figure 3.5
35
30
25
20
UG
15
PG
10
5
0
<500
500-1000
1000-2000
>2000
15
INTERPRETATION:
Here, majority of students have income less than Rs 500 per month. That is about 58%
of students have income less than Rs 500. Only 5% of students have income more
than Rs 2000. About 24% is in between the class 500 1000. Here about 13% of
students have income in the class of 1000 -2000.
AMOUNT OF MONEY GETTING PER MONTH

(GENDER WISE)
Table 3.6
Class
MALE
FEMALE
Total/ Percentage
<500
10(50%)
48(60%)
58
500 1000
5(25%)
19(24%)
24
1000 2000
1(1%)
12(15%)
13
>2000
4(20%)
1(1.25%)
Figure 3.6
>2000
1000-2000
Female
Male
500-1000
<500
0
10
20
30
16
40
50
60
INTERPRETATION
The above table and figure shows that only 20% of males are getting more than Rs
2000 per month. About 58% of students have income less than Rs 500. In male it is
50% and in female it is 60%.
SPENDING PATTERN OF STUDENTS

(EDUCATIONAL WISE)
POST GRADUATE STUDENTS

Table 3.7
Spending Avenue
Weighted Score
Rank
Entertainment
199
Fast Food
184
Health & Fitness
181
Mobile & Laptop Expenses
295
Studies & Tuition fees
334
Shopping
255
Transportation
301
Cosmetic & Beauty care
156
17

Figure 3.7
Spending Pattern of Post Graduate Students
INTERPRETATION:
When studying the spending pattern of post graduate students it is clear that they give
first rank to studies and tuition as their top most spending area. Students give second
rank to transportation and third rank to mobile and laptop expenses. Shopping is an
important factor in their spending and it is comes in the fourth rank. Students are not
much interested in spending on entertainment activities. Students less spends on fast
food and health and fitness and they give last ranks to these area of spending. only a
minor portion of students give importance to cosmetics and beauty care.
18
UNDER GRADUATE STUDENTS

Table 3.8
Spending Avenue
Weighted Score
Rank
Entertainment
203
Fast Food
212
Health & Fitness
157
227
273
Shopping
302
Transportation
285
175
Figure 3.8
Spending Pattern of Under Graduate Students
350
300
250
200
150
100
50
0
19
INTERPRETATION:
When studying the under graduate students spending habits, students give first
preference to shopping. Most of them are ranked shopping as their top most spending
area. Transportation comes in the second position. They also incurred expenses on
studies and tuitions. Mobile and expenses comes in the fourth rank and fast food
comes in the fifth rank. They are not much interested in spending on entertainment.
UG students are beauty conscious as compared to PG students, they give seventh rank
to this area and health and fitness comes in the last position
SPENDING PATTERN OF STUDENTS

(GENDER WISE)
MALE STUDENTS
Table 3.9
Spending Avenue
Weighted Score
Rank
Entertainment
110
Fast Food
82
Health & Fitness
52
102
73
Shopping
88
Transportation
96
60
20

Figure 3.9
Spending Pattern of Male Students
120
100
80
60
40
20
0
INTERPRETATION:
When studying the spending pattern of male students entertainment rank. All most
all male students are spending more on entertainment. Gadgets expenses hold the
second position and transportation in the third rank. These three areas are denoted as
the most spending area in the case of male students. Shopping comes in the fourth
position and spending on fast food comes in the fifth position. As compared to female
students male students have more consumption of fast food. Males are less conscious
about beauty care and health and fitness.
21
FEMALE STUDENTS
Table 3.10
Spending Avenue
Weighted Score
Rank
Entertainment
255
Fast Food
210
Health & Fitness
194
273
290
Shopping
278
Transportation
247
228
Figure 3.10
Spending Pattern of Female Students
350
300
250
200
150
100
50
0
22
INTERPRETATION:
When studying the spending pattern of female students it is evident that the female
spend more on studies and tuition fees. Shopping hold the second rank in the spending
pattern of female youth. Mobile and laptop expenses is the another area where females
tempt to spend. The expenses on entertainment are lesser in females as compared to
males. Transportation and beauty care is another areas where females have adequate
amount of spending. Only a small number of female students spend in maintaining
health and fitness.
NUMBER OF STUDENT HAVING SAVINGS

(EDUCATION WISE)
Table 3.11
Savings?
UG
PG
Total
Yes
46
49
95
No
Figure 3.11
50
45
40
35
30
YES
25
NO
20
15
10
5
0
UG
PG
23
INTERPRETATION:
About 95% of students have savings. Also about 5% of students do not have
savings. Out of 50 students in UG, 46 of them have savings and 4 students do
not have savings. In the case of PG students, 49 students having savings and 1
dont save any amount.
STUDENTS HAVING SAVINGS

(GENDER WISE)
Table 3.12
Savings
Yes
No
Male
Female
17
78
(85%)
(97.5)
(15%)
(2.5%)
Total
95
Figure 3.12
100
90
80
70
60
50
40
30
20
10
0
Yes
No
Male
Female
24
INTERPRETATION:
From the above table it is clear that 85% of males save money and 97.5% of
females save money. It is also given that about 15% of females do not save any
amount and only 2.5% of females do not have any savings.
AMOUNT SAVES PER MONTH

(EDUCATION WISE)
Table 3.13
Class
UG
PG
Total
Percentage
Less than 500
29
38
67
69.56%
500 1000
12
12
24
26.08%
1000 1500
Nil
1.08%
More than 1500
Nil
3.26%
Figure 3.13
40
35
30
25
20
15
UG
10
PG
5
0
Less Than
500
500 - 1000
1000 - 1500
More than
1500
25
INTERPRETATION:
The above table and figure shows the amount of money save per month for UG
and PG students separately. It is understood that majority of students save less
than 500. In UG, 29 students save per month less than Rs 500 and in the case of
PG students 30 save less than 500. In total, 69.56% of students save less than
500. In the class of 500 1000, 12 PG Students and UG students come under
the class. Only 1 student saves in UG in the class of 1000 1500 and no one
save in PG in this class. There are 3 students in UG only save more than Rs
1500 per month.
AMOUNT SAVES PER MONTH

(GENDER WISE)
Table 3.14
Class
Male
Female
10
60
(58.82%)
(76.92%)
16
(29.41%)
(20.51%)
Nil
(0%)
(1.28%)
More than
1500
(11.76%)
(1.28%)
Less than 500
500 - 1000
1000 1500
26
Total
70
21

Figure 3.14
80
70
60
50
40
30
20
10
0
Male
Female
Female
Less than
500 - 1000
500
Male
1000 1500
More than
1500
INTERPRETATION:
Both the table and figure show the gender wise amount of savings per month. It
is clear that about 76.92% of female students save per month less than Rs 500
and 58.82% of males save in the same class. Only 29.41% of males and 20.51%
of female students save in the class of 500 1000. Only 1 female saves in the
class of 1000 1500. Only 2 males and 1 female save more than 1500 per
month.
27
SAVING AVENUES
(EDUCATION WISE)
Table 3.15
Saving Avenues
UG
PG
Total
Percentage
Bank Deposit
32
31
60
65.25%
3.26%
Chit funds
4.34%
Others
10
15
25
27.17%
Post office savings

bank
Figure 3.15
35
30
25
20
15
UG
10
PG
5
0
Savings
Bank A/C
Post Office
Savings
Chit Funds
28
Others
INTERPRETATION:
The above table and figure shows the saving avenues of UG and PG students.
Most of the students are channelizing into bank deposits (That is about 65.2%)
students having post office savings and chit funds are less in number compared
to bank deposit. About 27.17% of students invest their savings into other
avenues.
SAVING AVENUES
(GENDER WISE)
Table 3.16
Saving Avenues
Male
Female
56
(20%)
(70%)
Post office savings
bank
(5%)
(2.5%)
(10%)
(2.5%)
20
(25%)
(25%)
Bank Deposit
Chit funds
Others
29
Total
60
25

Figure 3.16
80
60
40
Male
Female
20
Female
Male
0
Bank Deposits
Post office savings
Chit funds
Others
INTERPRETATION:
The above table shows the way in which respondents save their surplus money.
Out of 20 males, 20% divert their savings into bank deposit. About 25% of
males save through other sources. Out of 80 females, 56 (70%) respondents
save their money in bank deposits and 25% of females in other sources. The
number of males and females having post office savings and chit funds are very
less when compared with other avenues of savings.
30
REGULARITY IN SAVINGS
(EDUCATION WISE)
Table 3.17
UG
PG
Total
Percentage
Save Regularly
10
16
26
26%
Not Save Regularly
40
34
74
74%
Figure 3.17
40
35
30
25
20
Yes
15
No
10
5
0
UG
PG
INTERPRETATION:
There is a higher irregularity in savings. About 74% of students do not save
regularly. Only 26% of students have regularity in their savings. In the case of
UG students 10 students save regularly and 40 students not save regularly. In
the of PG students 16 students save regularly and 34 of them not save regularly.
31
REGULARITY IN SAVINGS
(GENDER WISE)
Table 3.18
Save Regularly
Not Save Regularly
Male
Female
10
16
(50%)
(20%)
10
64
(50%)
(80%)
Total
26
74
Figure 3.18
70
60
50
40
Save Regularly
30
Not save regularly
20
10
0
Male
Female
INTERPRETATION:
The above table and figure shows regularity in savings of males and females.
About 50% of males save regularly and 50% not save regularly. In females,
20% save regularly and 80% not save regularly.
32
PURPOSE OF SAVINGS
(EDUCATIONAL WISE)
Figure 3.19
Purpose
UG
PG
Total
Percentage
As a habit
13
23
36
38%
For higher studies
14
17
18%
For future shopping
10
15
15.78%
Others
14
13
27
28.42%
Figure 3.19
25
20
15
10
UG
PG
5
0
As a habit
For Higher
Studies
For future
shopping
Others
INTERPRETATION:
The above table and figure shows the purpose of savings in UG and PG
students. About 38% of students save money as a habit. And 18% of students
save money for higher studies. And about 15.78% of students save money for
future shopping and 28.42% save for other purposes.13 students in UG and23
students in PG save money as a habit. 14 students in UG and 3 in PG save for
33
future higher studies. 5 students UG and 10 students in PG save money for

future shopping purposes. About 14 students in UG and 13 students in PG save
money for other purposes.
PURPOSE OF SAVINGS
(GENDER WISE)
Table 3.20
Purpose
Male
Female
28
(40%)
(37.33%)
For higher
13
studies
(20%)
(17.33%)
For future
13
shopping
(10%)
(17.33%)
21
(30%)
(28%)
As a habit
Others
Total
36
17
15
27
Figure 3.20
40
35
30
25
20
15
10
5
0
Male
Female
As a habit
For higher
For future
studies
shopping
34
Others
INTERPRETATION:
The above table and figure shows the purpose of savings among students. From
the table it is evident that 40% of male students and 37.33% of female students
save money as a habit. 20% of males and 17.33% of female students save for
future higher studies.10% of male students and 17.33% of female students are
saving for future shopping. About 30% of males and 28% of female students
save for other purposes.
SPENDING AND SAVING STATUS

(EDUCATIONAL WISE)
Table 3.21
UG
PG
Total
Percentage
Spending > Savings
26
29
55
57.89%
Spending = Savings
15
15.78%
Spending < Savings
12
13
25
26.31%
Figure 3.21
30
25
20
15
UG
10
PG
5
0
Spending >
Saving
Spending =
Saving
35
Spending <
Saving
INTERPRETATION:
The above table and figure shows saving and spending status of UG and PG
students. More than 50% of students spend more than they save. Small portion
students have an equilibrium status, that is saving is equal to spending. About
26.31% of students save more than they spend. 26 students in UG and 29
students in PG have spending greater than savings. 8 students in UG and 7
students in PG have an equilibrium status i.e., spending equal to saving.12
students in UG and 13 in PG have spending less than savings.
SPENDING AND SAVING STATUS

(GENDER WISE)
Table 3.22
Spending> Saving
Spending= Saving
Spending< Saving
Male
Female
49
(41.17%)
(62.82%)
11
(23.525)
(14.1%)
18
(35.29%)
(23.07%)
36
Total
55
15
25

Figure 3.22
FEMALE
MALE
23.07%
SPENDING<SAVING
35.29%
SPENDING=SAVING
14.10%
23.52%
62.82%
SPENDING>SAVING
41.17%
INTERPRETATION:
The above table and figure shows gender wise spending and saving status of
students. About 41.17% of male students and 62.82% female students have
spending more than savings. About 23.52% of male students and 14.10% of
female students have an equilibrium position that spending is equal to savings.
About 35.29% of male students and 23.07% of female students spend less than
their savings.
37
DURATION OF SAVINGS
(EDUCATION WISE)
Table 3.23
Class
UG
PG
Total
Percentage
Less than 1 year
13
13
26
27.36%
1 3 years
21
16
37
38.94%
3 5 years
8.42%
More than 5 years
17
24
25.26%
Figure 3.23
25
20
15
UG
PG
10
5
0
Less than 1
year
1-3 years
3-5 years
More than 5
years
INTERPRETATION:
The above table and figure shows the duration of savings of UG and PG
students. About 27.36% of students save for less than 1 year. About 38.94% of
students have been saving money for 1 3 years. Some of the students have
38
been saving since 3 5 years and about 25.26% of students have been saving
for more than 5 years. 13 students in UG and 13 students in PG have savings for
less than 1 year.21 UG students and 16 PG students have savings for 1 3
years. 5 students in UG and 3 students in PG have saving for 3 5 years. 7
students in UG and 17 students in PG have savings for more than 5 years.
DURATION OF SAVINGS
(GENDER WISE)
Table 3.24
Class
Less than 1 year
1 3 years
3 5 years
More than 5 years
Male
Female
21
(25%)
(28%)
29
(40%)
(38.67%)
(15%)
(6.67%)
20
(20%)
(26.66%)
39
Total
26
37
24

Figure 3.24
40
35
30
25
20
15
Male
10
Female
5
0
Less than 1
1 - 3 years
year
3 - 5 years
More than
5 years
INTERPRETATION:
The above table and figure shows gender wise duration of savings. About 25%
of males and 28% of females have been saving for less than 1 year. 40% of
male and 38.67% of female students have been saving since 1 3 years. About
15% of males and 6.67% of females have been saving for 3 5 years. About
20% of males and 26.66% of females have been savings for more than 5 years.
40
GENERAL OPENION ABOUT SAVINGS AMONG COLLEGE

STUDENTS
Table 3.25
Total
Percentage
Increasing
28
28%
Decreasing
37
37%
Dont know
35
35%
Figure 3.25
INCREASING
28%
DON'T KNOW
35%
DECREASING
37%
41
INTERPRETATION:
When analysing the general opinion about saving among college students 35%
students dont know about the importance of savings. 28% of students have
increasing opinion about savings. Most of students dont know about the
importance of savings.
42
CHAPTER 4
FINDINGS AND CONCLUSIONS
FINDINGS OF THE STUDY
Data were collected from 100 samples, based on convenience sampling and the
observation based on the analysis of the data, are presented:
1. Among UG and PG students, most of them have income from pocket money.
In gender wise classification, both males and females meet their expenses by
using pocket money.
2. Only a small percentage of students earn money through part time or weekend
jobs. A minor portion of students get scholarships and grants.
3. Majority of our respondents get less than rupees 500 per month. There is only a
minor portion of them get more than rupees 2000 per month.
4. When study the spending habit of UG students, we find that their major
spending segment is shopping. Shopping of branded lifestyle products and
accessories are taking first position in their spending.
5. When we consider PG students, both males and females prefer studies and
tuition as their highest spending area. More than half of our respondents are
females and they marked that their spending is mainly concentrated in the area
of studies and tuitions, but the male students prefer entertainment as their
highest spending area.
6. Majority of students in both UG and PG have savings. Most of them prefer

bank deposit as their interested saving avenue. In gender wise classification,
43
most of the male and female students have savings.
A minor portion of
students do not have savings.
7. Most of the students in UG and PG save less than 500 rupees per month. When
we consider gender wise, the study shows that male and female students have a
savings of less than 500 rupees per month.
8. Most of the students prefer savings bank deposits as their savings avenue. Both
male and female students are also interested in savings bank account.
9. Post office saving and chit funds have an equal role in the saving habit among
college students.
10. Only a small portion of students have regularity in their savings most of the
students save irregularly. When we consider male and female separately, about
half portion of male students have regularity in savings.
11. In the case of female students, only a minor portion of them have regularity in
their savings.
12. Most of the students in PG save their portion of income as a habit. But in the
case of UG students, they save money for the purpose of future studies. While
classifying gender wise purpose of savings both male and female students save
their money as a habit. Most female students in UG and PG are interested to
save money as a habit but some of them save for future studies.
13. Most of the students in UG and PG have similar spending and saving status.
That is every one save less than they spend. The gender wise analysis of
students shows that both male and female students spend more than they save.
14. The duration of savings of students in UG and PG are 1 3 years. About onefourth of students save for less than 1 year. Female and male students are also
44
interested in medium term savings. Only a minor portion of them save money
for long team.
15. The general opinion about saving among college students shows a decreasing
trend. Only a small portion of students have knowledge about th youth savings.
SCOPE FOR FUTURE STUDIES
The study and finding observed therein consider 100 students in two educational
categories. The sample size can be expanded and the study can be expanded to
different categories including higher secondary and high school level. Also a study
can be carried out for those students who have got employment because the spending
pattern may be drastically different for a youth whom earns money. It can be further
studied that whether spending habits change after getting job or employment or not.
Spending and savings habit of adults i.e. above 30 years of age is also an interesting
area for study. It may be significantly different from youth.
CONCLUSION
The study conducted on The spending and saving habit of college students was
undertaken to know the spending and saving habit of college students. It was found
that most of our respondents spend more than they save but their spending avenues are
different. Most of the students have savings and they know about the importance of
savings. Students commonly prefer saving bank account as their saving avenue and
post office savings and chit funds are very popular in female students. Students save
as a habit and a small portion save for their higher studies. From the study on
spending pattern of students, male students are spending higher amount in
entertainment, shopping and transportation. Female students mainly spend in the area
of studies and tuition fees expenses.
45
From this, we conclude that the students have savings but they spend more than they
save and the students are not aware about the importance of savings.
BIBLIOGRAPHY
BOOKS:
1. Peter S Rose, Money and Capital Markets, McGraw-Hill
Publication, 6th Edition
2. Dr. A P Philip, Capital Market & Investment Management- 4th
Edition, Sobha Publication Changanashery.
3. E Gordon, P K Gupta Banking & Insurance
4. S.N Maheswari, S K Maheswari, Banking Law and Practice.
Kalyani Publishers, New Delhi, 13th Edition, 2010
5. Neelam C. Gulati, Banking and Insurance, Excel Books, New
Delhi 1st Edition 2011.
6. Abhijeet Birari & Umesh Patil Spending & Saving Habits of Youth
in the City of Aurangabad The Standard International Journals
(The SIJ), May 2014
WEBSITES:
1. www.mgu.ac.in
2. www.aboutmoney.com
3. www.investopedia.com
4. www.sebi.org.in
5. www.businessdictionery.in
46
A STUDY ON SPENDING AND SAVING HABITS OF COLLEGE

STUDENTS
QUESTIONNAIRE
1, Name:
2, Age:
3, Gender: Male
Female
4, Educational Qualification: a) Graduation
b) Post Graduation
5, Source of Income:
a) Pocket Money
b) Scholarship/Grant
c) Job (part time/weekend)
d) Others
6, How much money will you get per month?
a) Less than 500
b) 500 - 1000
c) 1000 - 2000
d) More than 2000
7, Please rank the following according to your spending:
Entertainment
Fast Food
Health and Fitness
Mobile/Laptop Expenses
Studies/ Tuition Fees
Shopping
47
Transportation/Petrol
Cosmetics and Beauty care
8, Do you have savings: Yes
No
9, If yes, How much amount you save per month ?

a) Less than 500
b) 500 - 1000
c) 1000 - 1500
d) More than 1500
10, In which way you make savings?
a) Bank Deposit
b) Post office Savings
c) Chit funds
d) Others
11, Do you have regularity in savings? Yes
No
12, What is your purpose of savings?

a) As a habit
b) For higher studies
c) For future shopping
d) Others
13, What is your spending and savings status:
a) Spending greater than savings
b) Spending equal to savings
48
c) Spending less than Savings

14, How long have you been saving money for?
a) Less than 1 year
b) 1 3 years
c) 3 5 years
d) More than 5 years
15, What is your general opinion about savings?
a) Increasing
b) Dont Know
c) Decreasing
49

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A Study on Spending and Saving Habit of College Students.

A STUDY ON SPENDING AND SAVING HABIT OF COLLEGE

Under the guidance of

A Study on Spending and Saving Habit of College Students.

A Study on Spending and Saving Habit of College Students.

STATEMENT OF THE PROBLEM

SIGNIFICANCE OF THE STUDY

OBJECTIVES OF THE STUDY

To study the spending pattern of two groups (graduation, post graduation)

To study the avenues of savings practiced by the youth today.

To study gender wise spending of the students.

A Study on Spending and Saving Habit of College Students.

SCOPE OF THE STUDY

Secondary Data Web sites, Publications.

Sampling procedure - Convenient Sampling

Sampling Technique Convenient Sampling

Sample Size 100

A Study on Spending and Saving Habit of College Students.

LIMITATIONS OF THE STUDY

The study is limited to the 50 undergraduate and 50 postgraduate students in

An interpretation of the study is based on the assumption that the respondents

A Study on Spending and Saving Habit of College Students.

1) Fixed Deposit or Time Deposit.

A Study on Spending and Saving Habit of College Students.

2) Current Deposit or Demand Deposits

A Study on Spending and Saving Habit of College Students.

2, POST OFFICE SAVING SCHEME

1) Savings Bank [SB] account

2) Recurring Deposit [RD] account

A Study on Spending and Saving Habit of College Students.

3) Time Deposit [TD]

4) Monthly Income Scheme (MIS)

A Study on Spending and Saving Habit of College Students.

Why People join in chit funds?

Kinds of Chit Funds in India

A Study on Spending and Saving Habit of College Students.

A Study on Spending and Saving Habit of College Students.

EDUCATION WISE CLASSIFICATION OF RESPONDENTS

A Study on Spending and Saving Habit of College Students.

Job (Part time/ Weekend)

A Study on Spending and Saving Habit of College Students.

Job (Part time/ Weekend)

Job(part time/ weekend)

A Study on Spending and Saving Habit of College Students.

AMOUNT OF MONEY GETTING PER MONTH

A Study on Spending and Saving Habit of College Students.

AMOUNT OF MONEY GETTING PER MONTH

A Study on Spending and Saving Habit of College Students.

SPENDING PATTERN OF STUDENTS

POST GRADUATE STUDENTS

Health & Fitness

Mobile & Laptop Expenses

Studies & Tuition fees

Cosmetic & Beauty care

A Study on Spending and Saving Habit of College Students.

A Study on Spending and Saving Habit of College Students.

UNDER GRADUATE STUDENTS

Health & Fitness

Mobile & Laptop Expenses

Studies & Tuition fees

Cosmetic & Beauty care

A Study on Spending and Saving Habit of College Students.

SPENDING PATTERN OF STUDENTS