Title of the Problem: “Financial Planning Awareness”
Authors: Shashank Kamble – 76
Pooja Kasar – 79
Shravani Kulthe – 84
Introduction:
Financial planning awareness refers to the understanding and management of personal finances such as budgeting, saving, investing, and managing expenses. In today’s economic environment, financial literacy is essential for making informed financial decisions.
However, many People and Individual lack proper knowledge about financial planning. They often do not track expenses, prepare budgets, or understand financial products like mutual funds, insurance, or investments. This study aims to understand the level of financial planning awareness among People and identify whether people actively practice financial planning.
Objectives:
1.To Understand the financial planning awareness among people.
2.To analyse whether people plan their expenses and savings.
3.To understand People knowledge about financial products and budgeting.
Literature Review:
1.Importance of Financial Literacy:
According to Lusardi & Mitchell (2014), financial literacy plays a crucial role in helping individuals make better financial decisions, including savings, investment, and retirement planning.
2. Financial Awareness among Youth:
The financial planning Studies show that young individuals often lack financial knowledge, which leads to poor financial decision-making and inadequate savingshabits OECD (2020).
Data Collection:
For our problem be formed following five questions to be asked on Likert Scale.
1. I understand the importance of financial planning.
2. I prepare a monthly budget.
3. I know basic financial products.
4. I track my expenses.
5. I try to save regularly.
The Google form was framed with linear option one as strongly disagree and five is strongly agree for each question. The google form was personally shared with our classmates, colleagues in confidence after serving 100 persons responses were downloaded in excel sheet. For each question mean, Standard Deviation, Standard Error and Z (T- Stat) were Calculated.
Data Analysis:
Completing the survey, the collection data was subjected to financial planning awareness. The mean, Standard Deviation (SD), and Standard Error (SE) were calculated for each survey question (Q.1 – Q.5). The mean Represents the average response on the Likert Scale, While the standard deviation provides a measure of the Variability in the responses.
|
Q.1 |
Q.2 |
Q.3 |
Q.4 |
Q.5 |
|
|
Mean |
4.13 |
3.46 |
3.67 |
3.67 |
3.75 |
|
Standard Deviation |
1.15 |
1.12 |
1.00 |
1.20 |
1.23 |
|
Standard Error |
0.12 |
0.11 |
0.10 |
0.12 |
0.12 |
|
Z (T – Stat) |
9.45 |
4.22 |
6.70 |
5.58 |
6.27 |
|
Result |
Accept Positively |
Accept Positively |
Accept Positively |
Accept Positively |
Accept Positively |
Conclusion:
1.I understand the importance of financial planning.
2. I prepare a monthly budget.
3. I know basic financial products.
4. I track my expenses.
5. I try to save regularly.
References:
Lusardi, A., & Mitchell, O. (2014). Financial Literacy and Financial Decision Making. Journal of Economic Literature.
OECD (2020). Financial Literacy and Youth Financial Education Report.