Research on managing personal finance

TITLE                    : Research on  managing Personal Finances

AUTHOR              : Sristi Agrawal (Finance 1,2023-25 -21230023599)

Shivani Kumari (Finance 1,2023-25  -21230023728)

Vishesh Tiple (Finance 1,2023-25  -21230023170)

INTRODUCTION
Personal finance refers to the management of an individual’s or a family’s financial resources. It involves making financial decisions, setting financial goals, budgeting, saving, investing, and planning for the future in order to achieve financial well-being. Personal finance covers a wide range of topics and activities.

  • Budgeting
  • Savings
  • Investing
  • Debt Management
  • Insurance
  • Retirement Planning
  • Estate Planning
  • Financial Goal Setting

Why Managing personal Finance is important?

Managing personal finance is important for several reasons, and it plays a crucial role in an individual’s overall well-being and financial stability.

OBJECTIVES

To Understand the underlying phenomenon and analysing the respondents’  behaviour pertaining to the questions related to Personal Finance.

LITERATURE  REVIEW

Hogarth World wide , a UK based marketing company  defines  financial literacy as the ways how people manage their money in terms of insuring, investing, saving and budgeting. Its about the capability to understand the basic financial concepts, and the ability to use them to plan and manage their financial decisions. The evidence collected revealed that an individual who have better understanding of the financial market and highly educated as well can manage efficiently their money in terms of insuring, investing, saving and budgeting, take effective financial decisions andcan make their future as financially stable and secure

OPEC (Organisation for Economic Co-operation and Development) The Organisation for Economic Co-operation and Development is an intergovernmental organisation with 38 member countries, headquarters in Paris, France ) defines financial education is “the process by which financial

consumers/investors improve their understanding of financial products and concepts and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being.”

DATA COLLECTION

We have framed five questions and surveyed 100 students regarding their opinion on the choices involved in managing personal finances .

DATA ANALYSIS

QUESTIONS ON MANAGING PERSONAL FINANCE       MEAN

Sum/no of observations

  STANDARD   DEVIATION STANDARD ERROR

SD/(N^1/2)

 Z VALUE

(MEAN -3)/standard error

     RESULTS
I believe in generating multiple sources of income        3.240     1.232     0.1232      1.948 Since Z value is

( -)1.96>z<1.96 we accept null hypothesis i.e  people in general do  focus in generating multiple source of income.
I believe in preparing a monthly budget to have a check on my expenses.       3.070     1.200      0.1200      0.583 Since Z value is

(-)1.96>z<1.96 we accept null hypothesis i.e  people in general do focus  on preparing a monthly budget to have a check  expenses.
I prefer value appreciation( investing in stocks / real estate) over liquidity of assets( Bank FDs / Gold).       3.270     1.100       0.1100    2.455 Since Z value is

z>1.96 we accept alternate  hypothesis i.e  people in general do not  prefer  value appreciation( investing in stocks / real estate) over liquidity of assets( Bank FDs / Gold).
I prefer having emergency fund in the form of FDs or Saving Bank  Account.       3.280      1.207      0.1207      2.320 Since Z value is

z>1.96 we accept alternate  hypothesis i.e  people in general do not  prefer having emergency fund parked  in the form of FDs or Saving Bank  Account
I prefer investing in capital market in Lumpsum than investing in SIPs       3.100       0.990       0.0990    1.010 Since Z value is

(-)1.96>z<1.96 we accept null hypothesis i.e  people in general do  prefer investing in capital market in Lumpsum than investing in SIPs.

CONCLUSION

  • People focus in generating multiple sources of income.
  • People focus on preparing a monthly budget to have a check
  • People do not prefer value appreciation ( investing in stocks / real estate) over

liquidity of assets ( Bank FDs / Gold).

  • People do not prefer having emergency fund parked  in the form of FDs or Saving Bank
  • People prefer investing in capital market in Lumpsum than investing in SIPs

REFERENCES

Leave a comment