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  • Category: Miscellaneous

    An interesting survey on financial planning of Indians

    An interesting survey has been conducted by Aviva Plan India relating to financial planning of Indians. Without going into the details of the survey, I am presenting some important findings from the survey. These are:-

    (I) Young people in the age group of 25 to 29 are very conscious about financial planning and proper implementation. People in the age group of 30 to 35 comes second. Astonishing, Indian people in the age group of 36-45 are very poor in financial planning and implementation.

    (II) Working women and educated housewives are catching up very fast with men in financial planning. (But in my own home, I can't feel this.)

    (III) Very astonishingly, Indian couples without children are better in financial planningthan couples with child/children.

    (IV) Financial planning is best among the residents of Bengaluru and Hyderabad. It is worst among the people of Ahmedabad (!) and Patna.

    (V) Higher income doesn't always mean better financial planning and implementation.

    The survey has brought into light various other interesting facts, one of which is that 81% of Indian parents can't properly estimate the future higher education cost for their child/children.

    I invite Members to share their opinion on these findings of the survey.
  • #594761
    Thank goodness for this survey. It refutes the observations made by you in an article on financial planning by the youth.

    I agree with the survey, based solely on my experience, with my daughter. She enjoyed her earnings, and also smartly invested part of her salary. This, without any goading/guidance from us. Thanks to her smart savings, she is today able to finance her living expenses, as she studies abroad.

    The youth today is smart. It is adults who underestimate them because we always believe we are smarter.

    I have seen young men booking apartments, as part of their investment plans. I believe the youth is more aware of their financial responsibilities than we would care to believe.

    "A love affair with knowledge will never end in heartbreak" - Michael Garrett Marino

  • #594766
    A very good survey furnishing believable truth. As far as point no.I of the survey, I believe that the implementation of hard financial reforms in our country during the regime of the Late Shri P.V.Narasimha Rao yielded so many results in improvement and development of the economy in our country. Most of us born and brought up with a certain mind set drawn out of our fore-fathers were in the teenage or were just settling in the life during Shri Rao's regime. But the present generation i.e. 25-29 years are enjoying the results of the financial reforms and hence must be wise to get their place in the survey.

    As far as Benguluru and Hyderabad, most of the people are of having IT/Software background and with their bulk earnings, they are having a long term plannings in the investments whereas in Ahmedabad, being a Gujarati (Marwadi) they believe in investing their money in day to day / short term investments. As usual any penny of long term investment would earn millions whereas the short term is not.

    That's what purely my personal opinion on the survey posted by the author.

  • #594790
    Good. The survey revealed very good interesting points. As far as I am concerned I plan my finance very carefully. I have two sons. They are in software. They are also good at financial planning. My wife is very good in this. She always keep a track of earnings, spending and savings. She will be cautioning all three of us if she observes anything out of track.

    I also observed many employees who are in their late 20s or early 30S plan carefully for their future.

    always confident

  • #594791
    Very good responses. But how many of us can differentiate saving and investment? How many of us know that insurance is not an investment?
    Non-violence is the greatest Dharma; So too is all righteous violence.

  • #594827
    @Partha ji,
    Good summary of Survey detauils, Thanks for sharing the details. Very Very few of Indians knew that Insurance is not an investment. Its the Insurance advisors who mis-sell their products and project Insurance products as an investment. It was 2007 - 2011, Where the ULIP plans were sold in bulk numbers where in 99% of the customers lost their hard earned money and only the Insurance advisors and the companies were benefited.

    K K

  • #594832
    I agree with much of the views by Gekay vide post #594766 above.

    The financial reforms started during the nineties opened a lot of avenues for investment. The IT sector opened floodgates of employment and high earnings by the employees. The liberalised and privatised economy after the nineties has enabled various opportunities of employment and business earning and equally good investment opportunities. Multinational paties entered investment sectors and propagated various awareness programmes to ready people for such investments. The continuous advertisements and marketing tricks made people much aware of these avenues and opportunities.

    Those youngsters in the age group 25-29,specified in the point no(I) in the thread are those who were kids or teenagers during the start of reforms. So they got very good opportunity to know the alternatives and avenues for investment. They also got well paying jobs which also helped them have surplus for investment. At the same time, they did not have the compulsion to spend for the family expenses solely, because their parents had made the necessary provisions and earning for that.

    The escalation costs in higher education are not according to a steady trend and new and new spaces are coming. Hence people are not able to exactly predict and plan the future necessity of higher education. The share of subsidised or free education by government sector is fast dwindling and the educational set ups by multinationals and big corporates increase prompting more and more expenses.

    I cannot agree fully if someone deducts that 'old generation' were bad planners or not planning at all. I know many elder people who are in their seventies and eighties continuing their share trading activity. They had started investing in shares during their youth . However there was not much opportunity then and so they have to be contented with what was available: like land and building and gold , and shares of good companies.

  • #594835
    There is no doubt that younger generation is much more aggressive in financial planning and it is evident from their timely booking of flats and investments in shares, mutual funds and bonds. One of the underlying reason could be the race for materialistic life styles and mad accumulation of luxurious gadgets.

    The survey results seem to be commensurate with the society trends today however in any survey it is important that survey should encompass a large sample of population as well as cover people from all walks of life and all corners of the country.

    Anyway one aspect which we should not ignore is that good financial planning habit is a personal trait and within a group of people there are some who are very much concerned for it while others do not bother much irrespective of their age group. There are so many such cases that we can not take them as exceptions also in that group.

    So we can not generalize these survey findings but yes they indicate a trend in the emerging societies.

    Knowledge is power.

  • #594851
    I differ from the observation of survey that age group of 25 to 29 are very conscious about their financial planning. In fact many are getting married after 30years now a days and hence wont agree. As far as financial planning are concerned generally ladies leave it to the head ache of their better half. And what is the life without children and planning for future needs finance wise. Well I agree to the point that financial planning of people from Hyderabad and Bengaluru are good as software and IT sector are blooming here. Higher income people are more spend thrift and wont think of saving for future.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #594854
    Mr. Mohan: I also don't agree that young people of the age group 25-29 are very good in financial planning. I have already written at least two articles on financial prudence required for younger generation. At the same time, people of Bengaluru and Hyderabad may be financially prudent, but the presence of IT industry is not a reason behind it.
    Non-violence is the greatest Dharma; So too is all righteous violence.

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