...Guru Nanak Dev University Regional Campus, Gurdaspur, Punajb, India #08968092299 arwinder.gndu@yahoo.com Nitika Bhandari (Corresponding Author) Assistant Professor/Department of Commerce Khalsa College for Women, Amritsar, Punjab, India #08146993589 Nitika3088@gmail.com Determinants of Financial Literacy among Youth: Case of Amritsar City Abstract Financial markets around the world have become increasingly accessible to everyone but financial products are becoming more complex and difficult to grasp for an average individual. Therefore it is of paramount importance to equip the Youth with Financial Literacy so that they can manage their own finances and securing their financial future. The present study is carried out with the objective to find out the determinants of financial literacy of the youth. The major determinants that influence the financial literacy are required to be sought in order to deal with the complexities of current financial markets and products. Data has been collected through primary sources by framing questionnaire answered by 100 respondents in Amritsar. Factor Analysis has been used to analyse the data. The analysis revealed five underlying dimensions namely Interest in Financial Issues, Financial Behaviour, Saving habits, Financial Attitude and Financial Awareness. The results of this paper will be helpful for making people more financially literate. Keywords : Financial Literacy, Youth, Factor Analysis INTRODUCTION...
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...This short paper will speak about personal financial goals such as, short term and long term financial goals, personal financial plans, personal balance sheets and personal income statements. Although I chose to not release my financial information, I will be speaking about a character named John Devens whom is a project manager, although has some debt, he makes decent money. Short term goals are goals that can be achieved within one to two years and can be items such as purchasing furniture for your home or even a minor repair to your home (Financial Engines, 2016). A long-term goal is a goal can take more than 5 years to achieve. Items that can be related to long term goals saving for your child’s college, a down payment for a new house or even a retirement plan (Financial Engines, 2012)....
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...Personal finance Final paper In my paper I will summarize everything I learned in this course about personal finance, talk about the steps to a healthy financial life and discuss the basics of personal finance. What is personal finance? Personal finance is the study of personal and family resources considered important in achieving financial success. It involves how people spend, save, protect, and invest their financial resources. It includes making financial decisions, developing and achieving financial goals, financial planning, budgeting, tax management, money management plan , use of credit cards, borrowing, saving plans, major expenditures, risk management, managing debts, investments, retirement planning, and estate planning. Personal financial planning is the process of managing your money to achieve personal economic satisfaction. Why is financial planning important? A good financial plan can enhance the quality of your life, the planning process allows you to control your financial situation; Increased effectiveness in obtaining, using, and protecting your financial resources throughout your life, Increased control of your financial affairs by avoiding excessive debt, bankruptcy, and dependence on others, Improved personal relationships resulting from well-planned and effectively communicated financial decisions. A sense of freedom from financial worries obtained by looking to the future, anticipating expenses, and achieving personal economic goals. Financial...
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...Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 January 21, 2013 Personal Budget, Balance Sheet, and Cash Flow Statement Memo: Some people save less than their financial capacity is and this fact leads them to serious financial problems and lack of financial security. Therefore, successful money management should be a life decision undertaken at the early adulthood in order to plan money distribution effectively that would eventually provide financial prosperity. The purpose of this memo is to analyze my client's financial situation, their personal budget, balance sheet, and cash flow statement and give them recommendations and support for improving their financial situation. My client, John Morgan is a 49 year old engineer who is married and has two dependents. Kate Morgan, John's spouse is a 43 year old teacher and the mother of those two children. My client and his family live in a gorgeous 4-bedroom house, in a nice neighborhood with a good school district. Although, the family leads a peaceful life their financial situation is in a great disarray. Though, John and Kate make together close to $140,000 a year they don't have much of a life savings, or emergency fund, and too much credit card debts. In order to help them understand the significance of saving more money instead of spending it, personal balance sheet, cash flow statement, and budget need to be prepared. Personal balance sheet reflects their assets and liabilities and determines...
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...CH1 1.How can using personal financial planning tools help you improve your financial situation? Describe changes you can make in at least three areas. a. Personal financial planning tools can help with expenses for house and groceries (example: making a grocery list before you go out so you don’t over spend on food that looks “yummy”), changes in investment (starting up a 401k), and increasing savings by proper financial planning. 2. Recommend three financial goals and related activities for someone in each of the following circumstances: a. A Junior in college 1. Apply for a credit card through his or her local bank to begin establishing credit 2. Begin searching for an apartment to live in after college. Also, it would be wise to start saving for the security deposit and monthly rent/utilities 3. Begin searching for jobs. This can be done at career fairs, online websites such as LinkedIn, or job postings online b. A 30-year-old computer programmer who plans to earn an MBA degree 1. Begin to research graduate schools for his or her MBA and figure out the application process, cost to apply, and cost to attend 2. Reduce spending and expenses by around 10% to save money for tuition and expenses of graduate school 3. Talk to his or her employer about setting up a 401k retirement plan c. A couple in their 30s with two children, ages 5 and 9 1. Begin to save for their children’s’ college fund 2. Ensure that they are saving enough in their 401k...
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...Sample Essay on Financial Planning It is vitally important for the individual to set up a personal financial plan in order not to experience hardships and financial difficulties in the future. Financial plan assure financial stability and financial freedom that one wants to possess till the end of his/her life. The following essay will speak about the role of the financial planning for the retirement years and will state that people without financial plans face substantial pain/suffering/unhappiness in their retirement years. The process of developing a sound financial plan is a routine process that indeed involves not only careful financial analysis of the person’s current situation and long-term commitment to implement and monitor that plan throughout his/her life, but also requires careful thinking for the future. In order to properly achieve the financial planning goals, one has to monitor the performance of the financial plan as well as make proper changes when necessary. Thus, in order for the plan to remain of use for the person and not a fortune for financial advisors, one has to make it user-friendly and elaborate. For example an article How to manage your money, noted that one is not able to compete well without the resources and thus has to read a lot about the market (Macklem, Katherine, 2004). One should weigh all the pros and cons of mutual funds namely, criteria for selecting stocks, the fund managers, and track record. Katherine Maclem (2004) states...
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...Saurabh Sunny Baghmar MNGT: 6361 Problem Statement: To determine if saving from the total monthly income is gender biased. Hypothesis: H0: Single Women save equal to single men from their total monthly income. (Null Hypothesis) H0 = µwomen - µmen = 0 Introduction: The thought behind this problem statement comes from the report which says that there is a huge difference between the number of single women applying for credit cards and men. There are studies done to project the spending/saving habits of men and women. Research shows that women and men have different interest areas where they like spending money [1]. These areas determine how much they spend. Men spend money mostly on eating out, sports ticket, drinking, cars and boys clubs. Whereas women like to spend money on clothes, jewelry, makeup/spa and other accessories. According to [2], the level of debt for men and women is different. Gender was more influential in predicting financial management practices than was affective credit attitude, with female students employing a greater number of financial practices. Research on credit card behavior [3] among college going men and women states that men apply for more than one credit card whereas women’s hold an average of one credit card during their college education. The identification of gender differences may also indicate the need to closely examine individual...
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...1. (TCO 1) A(n) _____ summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities. (Points : 1) | insurance prospectus statement budget investment forecast financial plan | (TCO 1) The main goal of personal financial planning is: Saving and investing for future needs Reducing a person's tax liability Achieving personal economic satisfaction Spending to achieve financial objectives Saving, spending, and borrowing based on current needs (TCO 1) The ability to convert financial resources into usable cash with ease is referred to as: Bankruptcy. Liquidity. Investing. Saving. Opportunity cost (TCO 1) Brad Opper has a goal of "saving $50 a month for vacation." Brad's goal lacks: Measurable terms. A realistic perspective. Specific terms. The type of action to be taken. A time frame. (TCO 1) Opportunity cost refers to: money needed for major consumer purchases. what a person gives up by making a choice. the amount paid for taxes when a purchase is made. current interest rates. evaluating different alternatives for financial decisions. (TCO 1) If a person deposited $50 a month for 6 years earning 8 percent, this would involve what type of computation? simple interest future value of a single amount future value of a series of deposits present value of a single amount present value of a series of deposits (TCO 1) Which type of computation...
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...4 MANAGING YOUR CASH AND SAVINGS Cash Management Strategies Starting Point Go to www.wiley.com/college/bajtelsmit to assess your knowledge of cash and savings management. Determine where you need to concentrate your effort. What You’ll Learn in This Chapter ▲ Cash management ▲ Financial institutions ▲ Financial products and services After Studying This Chapter, You’ll Be Able To ▲ Assess your need for cash management products and services ▲ Evaluate the differences among providers of cash management products and services ▲ Choose cash management products and services that are important to your financial plan ▲ Compare cash management account options based on liquidity, safety, costs, and after-tax annual percentage yield ▲ Select appropriate tools for dealing with cash management errors Copyright © 2012 John Wiley & Sons, Inc. 4.1 OBJECTIVES OF CASH MANAGEMENT 169 INTRODUCTION Everyone manages cash. Your very first exposure to personal financial management was probably related to cash management. Perhaps you received a small allowance when you were a child and had to decide how to spend or save the money. Access to cash to meet transaction needs and emergencies is essential to your financial plan. A central part of your cash management strategies involves choosing cash management services, such as checking and savings accounts. This chapter helps you evaluate companies and the cash management services they offer. After you select the options that best...
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...involves a number of different areas of understanding. Learning about money and how it works is an important aspect, as well as understanding products like credit, loans, and investments. Competency in managing money appears to be a skill that doesn’t come naturally to everyone. Unless a person is exposed to the practice of money management, he/she is less likely to understand how it works and it long-term benefits. Without a financial education, it is easy to develop poor spending and financial habits resulting in significant negative consequences such as a poor credit rating, denial of credit, rejection for a checking account and bankruptcy, to name a few. Early financial literacy is the best way to prevent such consequences. In essence, personal financial literacy is much more than managing and investing money. It also includes making all the pieces of your financial life fit together. Achieving Financial Success you must understand and determine where your money goes. Here’s how you can start: Analyzing cash flows Taking advantage of opportunity cost. Taking control of your spending. Continued on page 2 Reviewing your budget can help you to plan for a successful future: Allocation of excess cash Establish an emergency fund Invest additional assets Make extra payments to reduce debt Plan for the future shortages Building your financial knowledge through: Financial...
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...University of Phoenix Material Personal Financial Planning Worksheet Directions Based on your readings and discussions in class this week, answer the following multiple choice questions. 1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called personal financial planning 2. Which of the following is not one of the five major steps of the financial planning process? Collect and organize your financial information. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? Late 20s through your 40s 4. Which of the following is a benefit of having a college degree that can affect your financial planning? All of the above 5. Which of the following elements of a comprehensive financial plan involves analyzing future needs, such as saving for retirement or college funding for dependents? Securing basic needs Directions Respond to the following short-answer questions in 50-to 100-words: 6. People have different styles when it comes to handling their money. List the two things that affect your personal beliefs and opinions about financial planning. How well do you feel you manage your money? Can you spot areas for improvement in your money management style, and if so, where/how? Values (fundamental beliefs about what is important in life) and attitudes (opinions and psychological differences between people that affect their...
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...Prepare a personal income statement for the past year, using the same format as Alice’s income statement in this chapter. Include all relevant categories of income and expenses. What does your income statement tell you about your current financial situation? For example, where does your income come from, and where does it go? My current financial situation is dire; I am on disability and have an income of less than $12,000 per year. I am a widow who lost all my assets, including my home. All my resources were needed to take care of my terminally ill husband. I do not have any large debt or loans, but I do have monthly living expenses. I have a very small apartment and pay rent. Some items are in storage and require I pay a monthly storage...
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...University of Phoenix FP/101 Quiz Week 2 Week 2 Objectives 1. Identify social and economic influences on personal financial goals and decisions.(Chapter 1, Pg. 2-11) 2. Develop personal financial goals. (Chapter 1, Pg. 16-20) 2.3 Calculate time value of money situations associated with personal financial decisions. (Appendix 40-44) 1. Concept: Influences on financial goals and decisions 1. The Rule of 72 is a. A tool to determine the number of years until retirement for an employee b. Used to estimate how long it takes for prices to double using a given annual inflation rate c. The legal code for requiring companies to provide a match on retirement savings d. Used to calculate interest rates for savings 2. Which is NOT an identifiable financial goal? a. Retirement and estate planning b. Risk management c. Living on a fixed income d. Saving 2.2 Concept: Develop personal financial goals 3. SMART Goals contain all of the following EXCEPT a. Specific – knowing exactly what the goals are and how to attain them b. Action-oriented – the bases for the goals c. Resourceful – to be able to rely on information used to understand the written goals d. Time-based – the time frame needed to reach the goal 4. Short-term goals are: a. Goals to be attained within a year or so b. Contain college plans for children c. Creating an estate plan d. Making a big purchase 5. Long-term goals are: a. Goals to be attained...
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...Interpretation of Results 6 4. Discussion 7 5. Conclusion 8 6. Recommendations 9 7. Reference List 10 8. Appendix A: Questionnaire 11 9. Appendix B: Detailed Results perform in Charts 14 9.1 Personal information and choices from online shops 14 9.1.1 Gender as a percentage. 14 9.1.2 Gender according to ages as a percentage. 14 9.1.3 Age Ranges 15 9.1.4 Personal choices from the online shops as a percentage. 15 9.2 Opinions about the convenience of online shopping 15 9.2.1 Online shop are available 24 hours a day so I can shop any time 16 9.2.2 Online shops provide various options of commodities 17 9.2.3 It is easy to make comparison with products from other websites. 18 9.2.4 Searching for a product is easy. 19 9.2.5 Accurate information about products is often provided on the website. 20 9.2.6 Delivery is on time. 21 9.2.7 Returning is not available or may take a long time to process. 22 9.3 Opinion about saving time and money from online shopping 23 9.3.1 Online shopping saves travel time. 23 9.3.2 Order process is easy and fast. 24 9.3.3 Shipping fee affects buying decisions. 25 9.3.4 Online price is cheaper than in the shop. 26 9.4 Awareness of security from online shops 27 9.4.1 Personal information is protected while shopping on the internet. 27 9.4.2 The reliability of online shop websites or sellers should be checked before making a purchase. 28 9.4.3 The...
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...Managing Personal Finances with Demand Deposit Accounts Summary: Demand deposit accounts offer individuals many different options and benefits when managing their personal finances. Deposit accounts can be used to manage everyday expenses, keep track of personal cash flow and save for the future while earning a return. There are many different types of deposit accounts, each offering a means to achieve specific goals. In the following pages, I will break down some different types of accounts, discuss their purpose and show how each one can make achieving personal financial goals a simpler, more attainable task. Demand Deposit Accounts, or DDAs, are accounts offered by financial institutions such as banks and credit unions that allow account holders to deposit and withdraw funds and perform many other types of transactions. These accounts are called demand accounts because they give the client access to funds upon demand, either limited or unlimited depending on the type of account. The main purpose of these accounts are to offer clients, personal or business, a secure means of storing, transferring, spending, or saving money. The first and most common type of DDA is a checking account. A checking account offers the convenience of being able to deposit and withdraw funds and issue checks, or drafts, to transfer money to any individual or business. This is a much safer way to keep money that is used for everyday expenses because it is insured by the federal...
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