A

SINOPSIS
ON
“A DETAILED STUDY ABOUT VARIOUS FACTORS EFFECTING FINANCIAL
LITRECY OF MBA STUDENT OF NAGPUR UNIVERSITHY”
Submitted to
Rashtrasant Tukdoji Maharaj Nagpur University,
Nagpur
In partial fulfillment of the requirement of
Master of Business Administration
For academic year 2019-20
Submitted by
RASHMI H MANCHALWAR
M.B.A.
SPECIALIZATIONA: FINANCE
Enroll. NO.
UNDER THE GUIDANCE OF
Dr. ADITI JHA

Dr.Panjabrao Deshmukh Institute of Management

Technology &Research, Dhanwate national college, Nagpur
A.Y.2019-2020
Sr.No CHAPTER NAME PAGE NO.

1 Introduction

2 Literature review

3 Research Methodology

4 BIBLOGHRAPHY
BIBLOGHRAPHY
CHAPTER 1

INTRODUCTION

Financial literacy is based upon providing individuals sound financial knowledge

and skills so that they can make informed financial decisions and take effective
actions regarding their personal money management. However, the underlying
message is aimed to adjust people's core attitudes and beliefs, so that a change in
financial behavior can help them reach a future of financial freedom and security.
We all know that our society is built on credit. It is normal practices for most of
usto borrow money to finance our current needs with the hope of future repayment.
We Borrow money in the form of student loans - to finance educational cost; credit
cards and private loans - to finance consumer purchases; and mortgages - to
finance homes.
Literacy is of various types and sub-types e.g. Functional literacy (is required to
get Along successfully on a day-to-day basis), Cultural Literacy (is about customs,
values, and beliefs of one's own culture and the cultures of others), Information
Literacy (is related to identifying, locating, evaluating and effectively using
information for the issue or problem), Media Literacy (about critical understanding
of the mass media),Computer Literacy (the ability to use a computer and its
software to accomplish practical tasks),
Mathematical Literacy (is a mastery of the basic symbols and processes of
arithmetic),
Technology Literacy is about the ability to use new media such as the Internet, to
access and communicate information effectively), Global Literacy (Understanding
the interdependence among people and nations and having the ability to interact
and collaborate successfully across cultures) and so on.
Concept of Financial Literacy: Financial literacy is considered in the context of
economic inequality. Some of the forms of financial inequality are- paying lower
wages
CHAPTER 3

RESEARCH METHODOLOGY

3.1 Meaning:

Research is a systematic and scientific search for pertinent information on a

specific topic in fact research is an art of scientific investigation. It is an academic
activities and the term should be use in technical sense. Research is an original
contribution to the existing stock of knowledge helping for its advancement it is
the pursuit of a truth with the help of study observation, comparison and
experiment. In short, the search for knowledge through objective and systematic
method of finding solution through a problem is called research.

Definition:

“A research is a careful investigation or enquiry especially through such for new

facts in any branch of knowledge."

3.2 Objective of the study

To understand the concept of financial literacy and its importance.

To study the various demographic factors that can affect the financial literacy.

To analyze the relation between financial literacy of MBA students and

demographic factors.

To understand the challenges and goals MBA students have with financial matters.
Ahmed Madi (2018)

This conceptual paper discusses the determinants for Investors Decision-making

Behavior in the investment sector decision and explains the usage of different
influence strategy may affect the role of other factors in Investors Decision-making
Behavior. This concept paper suggests and encourages future work to examine the
effect of financial literacy to explain Investors Decision-making Behavior. In the
next stage of this study, authors intend to investigate whether an influence strategy
plays a significant effect of Investors Decision-making Behavior determinant to
explain Investors Decision-making Behavior. By doing so, investors can utilize the
findings of this study to understand which factors would most likely facilitate the
Investors Decision-making Behavior.
Dilip Ambarkhane, Bhama Venkataramani and Ardhendu Shekhar

Singh (April 2015)

The level of financial literacy worldwide is observed to be low. Considering the

Education system in India, we suspect that financial literacy here must be at low
level. Moreover, we have a large unbanked population; financial literacy will help
in bringing them in formal financial fold. It will favorably affect not only
economic aspects of individuals but also social aspects. There are many
malpractices and frauds taking place in financial sector. Financial literacy will help
the people by preventing them in getting in to those traps. The inputs should
address attitude and behavioral aspects in addition to knowledge.

Neha Ramnani Bhargava (Sept 2016)

From the study it was evaluated that in India the level of financial literacy is very
low. The entire structure of financial system in our country is dependent on the
levels of financial literacy among the masses. The hierarchy of central
government-state government-local bodies should be adhered to in actuating the
policy decisions. It is suggested that there is a need to spread financial education in
both urban and rural areas with more concentrated efforts in rural sector due to
poor levels of education and household incomes. This would enable individuals to
understand the value of money, its need and importance of savings. They need to
be enlightened about the advantages of joining the formal financial sector and also
should be made aware of options to channelize their savings into investments.
Financial education will also give them knowledge of wealth protection through
insurance and impart a realistic recognition of the attributes of financial options.
Various massive financial education and awareness campaigns
CHAPTER 2

LITRETURE REVIEW

Haiyang Chen and Ronald P. Volpe (2013)

This study surveys 924 college students to examine their personal financial
literacy; the relationship between the literacy and students' characteristics; and
impact of the literacy on students' opinions and decisions. Results show that
participants answer about 53% Of questions correctly. Non-business majors,
women, students in the lower class ranks, under age 30, and with little work
experience have lower levels of knowledge. Less knowledgeable students tend to
wrong opinions and make incorrect decisions. It is concluded that college students
are not knowledgeable about personal finance. The low level of knowledge will
limit their ability to make informed decisions.

Sandra J. Huston (2014)

Creation of financial education programs designed specifically to enhance financial

literacy has been viewed as a solution to mitigating financial problems that
individuals and students face. It is increasingly apparent that financial mistakes can
impact individual welfare as well as create negative externalities that affect all
economic participants. Tracking variation and change in financial literacy rates is
of interest to educators, policymakers, employers and researchers. A more standard
approach to measure financial literacy is needed to identify barriers to financial
well-being and assist in solutions that enable effective financial choice.
to women for the equal work compared to males, denial Of certain jobs and
promotions, incentives etc. Thus, financial literacy in short, refers to:

l. The ability to understand how money works and why it is important?

2. How someone manages to earn or make money and how that is managed or how
person invests it to turn it into more?

3, it also refers to the set of skills and knowledge that allows an individual to make
informed and effective decisions with all of their financial resources.

Definitions of Financial Literacy:

"Financial literacy is the ability to make informed judgments and to take effective
decisions regarding the use and management of money. Financial literacy is
therefore a combination of person's skills, knowledge, attitudes and ultimately their
behaviors in relation to money" (ANZ Bank, 2011).

"Personal financial literacy is the ability to read, analyses, manages and

communicates about the personal financial conditions that affect material well
being. It includes the ability to discern financial choices, discuss money and
financial issues without (or despite) discomfort, plan for the future and respond
competently to life events that affect everyday financial decisions, including events
in the general economy" (Carol, A. 2000).

"Financial literacy is a basic knowledge that people need in order to survive in a

Modern society"(Kim, 2001). iv. "Financial knowledge is defined as
Understanding key financial terms and concepts needed to function daily in
society"