CONTENTS

Chapter

Title

1
2

INTRODUCTION
REVIEW OF
LITERATURE
DATA ANALYSIS
AND
INTERPRETATION
FINDINGS
SUGGESTIONS
CONCLUSION
BIBILOGRAPHY
APPENDIX

Page No.

LIST OF TABLES AND GRAPHS

No
1
2
3
4
5
6
7
8

Title
Age wise classification
Number of family members
Classification on the basis of regular source of income
Source wise classification
Monthly income
Monthly expenditure
Classification on the basis of percentage of savings
Classification on the basis of other savings

Classification on the basis of period of savings

10
11

Classification on the basis of preparation of family

budget
Preference wise classification

12
13

Investment wise classification

Opinion wise classification

14

Expectation of savings

15
16
17

Insurance
Kinds of insurance policy
Kinds of account

18

Purpose of maintaining savings

19

Classification on the basis of consultation with

financial advisor

Page No

CHAPTER 1
INTRODUCTION

INTRODUCTION
Savings have much importance in life. It is very essential for an individual.
Savings means a portion of income which is saved from the balance of day to day
expenditure. Savings are not only in the form of gold, investment in land, but also
in the form of investment in the shares, debentures and bonds.
The concept of savings play an important role in economic analysis since it
facilitates the stability of economic growth. Savings is defined as the difference
between income and consumption. Savings is closely related to investment.
Denzier, wolf, and ving (2002) defined savings as a difference between disposable
house hold income and house hold expenditure. From a psychological point of
view, savings can be considered the result of a deliberate decision making process
and to save is the act of regularly putting away someone for goal. Eg: a pension
fund to buy something etc..
Savings means sacrificing the current consumption in order to increase the living
standerd and fulfilling the daily requirements in future. As utilization of blood is
necessary for the serial of a human body. Savings are also necessary for,
unpredictable future in order to meet the emergencies in life , which investment is
an economy activity of employment of funds with the expectations of receiving a
stream of benefits in future.
The more than individuals can become to be financially self sufficient or
retirement, the less financial burden on the state. Moreover a high a level of
domestic savings could have a positive effect on the economy by way of increasing
the investment in capitalstock and the rate economy by way of increasing the
investment in capital stock and the rate economy growth, ie , why most of the

empirical studies on savings find that there is a strong positive correlation between
economic growth and savings. (carrol and wail 1994 : Edwards , 1995)
The life cycle hypothesis (LCH) posits that consumption and savings reflect an
individual stage in the life cycle, which is generally proceed by age which
emphasizes saving for retirement as a primary motivation for deferred
consumption.

STATEMENT OF THE PROBLEM

This study intends to analyze the savings habits of people living in
rayamangalampanchayath.

NEED AND SIGNIFICANT OF THE STUDY

Savings is very important part of the life. Savings habit is more essential to the day
to day life. It helps to living good and increase standard of living. People save their
money through different ways. They increase national income. Savings avoid miss
utilization of money.
There is uncertain; nobody knows what lies for him in his future. So, and he should
save money against bad days. Thus over dissertation topic is very relevant to this
context. It has a vital role in the present economy.

OBJECTIVES OF THE STUDY

To find out the different ways for saving money

To understand the savings habit of people
To analyse the spending habit of people
Attitude towards money, savings and spending habit

METHODOLOGY

This study is descriptive and analytical in nature. The study is mainly based
on primary data and appropriate secondary data were also used.

PRIMARY DATA
This study is conducted on the basis of primary data collected from the people
living in rayamangalampanchayath. Data is collected through structured
questionnaire (survey method). The sample size of 50 general people has been
selected from rayamangalampanchayath. The technique used for this method is
face to face interview.

SECONDARY DATA
The secondary data is collected from websites (INTERNET) guidelines. In
additions to this experts opinion of the various officials are also included.

SCOPE OF THE STUDY

The scope of the study aims at studying savings habit of people, saving
importance, benefits and the usage of savings among people, to know the people
how to save the money, which kind of investment they prefer. The study is
conducted by collecting the opinion of different level of income groups of people.
This study will be useful to understanding the saving habit if people. The scope of
subject is, its very helpful to know the growth of national income. Individual
savings help to know the nations income. The study is sincere attempt to analyse
the savings the mentality of people or household individuals.

LIMITATIONS OF THE STUDY

 The study is to conducted only one panchayath. So comparison with other

panchayath is not possible.
There is always a chance for personal bias to answer the queries.
The time constraint is a limiting factor.

CHAPTERISATION
The study chapterised as follows;

Introduction
Review of literature
Data analysis and interpretation
Summary, findings and recommendations.