Analysis Of Personal Financial Planning Strategies Of Salaried Class Using Analysis Of Variance Method: A Case Of Dehradun City In Uttarakhand (India)
Keywords:
Financial literacy, Personal Financial Management, Financial Planning, Salaried class, Household saving.Abstract
After the liberalization of the Indian economy in 1992, the wave of globalization benefitted Indian Financial services and individuals. However, Tier-II cities of India participated in this rally by the final part of the decade. Financial literacy is an important aspect in making a well-informed decision in the highly dynamic and convoluted market. Financial crisis can be attenuated under Financial literacy. In the current era of automation, the convoluted global economy increases the risk spectrum of the individual. Keeping in mind the large population of India works in the shambolic sector with minimum social security. As the Government withdrew pension schemes from government jobs, financial security will be a huge concern for our population. Personnel financial management will be effective as well as efficient if only financial literacy is acquired by individuals. Personal Financial management includes financial literacy and Household saving patterns of individuals. In this study, we try to identify and analyze the level of financial literacy and its relationship with the demographic profile of the salaried class and analyze the household saving pattern of the salaried class of Tier II city. Analysis of variance method used for establishing the relationship between financial literacy and demographic profile of the sample. The findings of the study imply that Financial literacy is independent of age and monthly income but not independent from family responsibility. The finding also suggests a change in household saving patterns as the age of individuals increases. This study would help in adopting appropriate strategies to improve the level of personal financial management for individuals.
References
Aghion, Philippe, and Jeremy Stein, (2004), ‗Growth versus margins: The destabilizing consequences of giving the stock market what it wants‘, Working paper, Harvard University.
Amenc, N., Martellini, L., Milhau, V., & Ziemann, V. (2009). ‗Asset-Liability Management in Private Wealth Management‘. The Journal of Portfolio Management, 36 (1), 100-120.
Budge, G. S. (2007). ‗Continuing Challenges to Delivering Integrated Wealth Management Services to Business Owners‘. The Journal of Wealth Management, X (2), 51-62.
Caselli, S. and Gatti, S. eds., (2005). ‗Banking for family business: a new challenge for wealth management‘. Springer Science & Business Media.
Ceru, D., (2004). ‗Strategy and Technology for the New Wealth Management‘. The Journal of Wealth Management’, 7(1), pp.81-91.
Dr. J. Gajendra Naidu (2017) ‗Financial Literacy in India: A Review of Literature International Journal of Research in Business Studies and Management‘ Volume 4, Issue 6, 2017, PP 30-32 ISSN 2394-5923 (Print) & ISSN 2394-5931 (Online)
Evensky, H. and Evensky, H.R., (1997). ‗Wealth Management: The Financial Advisor's Guide to Investing and Managing Client's Assets‘. McGraw Hill Professional.
Hamilton, S., (1992). ‗Research note: A second family business—Patterns in wealth management. Family Business Review‘, 5(2), pp.181-188.
Isdale, M. H. (2006). ‗Strategies for Simplifying and Increasing the Effectiveness of Wealth Management‘. The Journal of Wealth Management, IX (2), 14-18.
https://doi.org/10.1007/s10834-020-09721-9
Lusardi, A., & Mitchell, O. S. (2011c). ‗Financial literacy around the world: an overview‘. Journal of Pension Economics and Finance, 10(4), 497–508.
Morgan, J.P. and Wyman, O., (2014). ‗The future of European wealth management: imperatives for success‘. Retrieved April, 17, p.2017.
Nayak, S. (May 2013). ‗Determinants and Pattern of Saving Behaviour in Rural Households of Western Odisha‘. NIT Rourkela, Odisha.
Pang, G., & Warshawsky, M. J. (2009). ‗Comparing Strategies for Retirement Wealth Management: Mutual Funds and Annuities‘. Journal of Financial Planning, 22 (8), 36- 47.
Pompian, M. M. (2012). ‗Behavioral Finance and Wealth Management (2nd Edition ed.)‘. America: John Wiley & Sons, Inc., Hoboken, New Jersey.
Schröder, D. (February 2013). ‗Asset Allocation in Private Wealth Management: Theory Versus Practice‘. Journal of Asset Management, Springer.
Velmurugan, G., Selvam, V. and Nazar, N.A., (2015). ‗An empirical analysis on perception of investors‘ towards various investment avenues‘. Mediterranean Journal of Social Sciences, 6(4), pp.427-427.
Villalonga, Belen & Amit, Raphael, (2006). ‗How do family ownership, control, and management affect firm value?.‘ Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417.
Downloads
Published
How to Cite
Issue
Section
License
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
