PROJECT REPORT

Submitted for the Degree of B.Com (Hons) Marketing under the University of Calcutta

Title of the Project

“SAVING HABITS OF MIDDLE-CLASS PEOPLE”

Submitted by:
Name of the candidate: Simran Kaur
Registration no.: 017-1211-3442-21
Calcutta University Roll no.: 211017-11-0873
Name of the college: The Bhawanipur Education Society College
College UID- 0102212626

Supervised by:
Name of the supervisor: Prof. Ranita Sreemany
Name of the college: The Bhawanipur Education Society College

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 Month & Year of submission: JULY 2024

SUPERVISOR'S CERTIFICATE
This is to certify that Ms. Simran kaur a student of B.Com (Hons.) In Marketing of The Bhawanipur

Education Society College under the university of Calcutta has worked under my supervision and

guidance for her project work and prepared a project report with the title "Saving Habits of Middle

Class Family" . Which she is submitting is her genuine and original work to the best of my knowledge.

Signature:
Name: Prof. Ranita Sreemany
Designation: Lecturer
Name of the College: The Bhawanipur Education Society College

Place: KOLKATA

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DATE:

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 STUDENTS DECLARATION
I hereby declare that the Project work with the title "Saving Habits of Middle Class People"

submitted by me for the partial fulfillment of the degree of B.Com (Hons.) in Marketing under

the University of Calcutta is my original work and has not been submitted earlier to any

university / institution for the fulfillment of the requirement for any course of study. I also

declare that no chapter of this manuscript in whole or in part has been incorporated in this

report from any earlier work done by others or by me. However, extracts of any literature which

has been used for this report has been duly acknowledged providing details of such literature

in the reference.

Name: Simran kaur

C.U Registration: 017-1211-3442-21

C.U Roll No.: 211017-11-0873

Signature:

Place: KOLKATA

DATE:

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 ACKNOWLEDGEMENT

"Perseverance inspiration and motivation have always played a key role in success of any

venture." I hereby express my deep sense of gratitude to all the personalities involved directly

and indirectly in my project work. With immense pleasure I would like to express my thanks

to my supervisor Ranita Sreemany for having given me this privilege of working under her

guidance and completing this study. Last but not least I would like to express my sincere

gratitude to all the faculty members including our librarian who have always been a source of

guidance, inspiration and motivation.

However, I accept the sole responsibility for any possible errors, omission and would be

extremely grateful to the readers of this project report if they bring such mistakes to my notice.

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 CONTENTS
SL.NO. PARTICULARS PAGE NO.

CHAPTER 1 INTRODUCTION 6-14

1.1 Background of Study 6

1.2 Need of Study 7

1.3 Literature Review 8-10

1.4 Objective of Study 11

1.5 Research Methodology 12-13

1.6 Limitations of Study 13

1.7 Chapter Planning 14

CHAPTER 2 CONCEPTUALFRAMEWORK/NATIONAL 15-19

SCENARIO/INTERNATIONAL SCENARIO

2.1 Conceptual Framework 15-17

2.2 National Scenario 18

2.3 International Scenario 19

CHAPTER 3 DATA ANALYSIS AND FINDINGS 20-43

3.1 Case Study 20-41

3.2 Findings 42-43

CHAPTER 4 CONCLUSION AND RECOMMENDATIONS 44-45

4.1 Conclusion 44

4.2 Recommendation 45

BIBLIOGRAPHY AND QUESTIONN 46-49

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CHAPTER-I: INTRODUCTION

1.1. Background of the study

The research has been conducted to answer few important questions on preference of the savings
instruments and pattern of savings of middle class families.
The cost of housing, health care and education are consuming every larger share of household
budgets, and have risen faster than income. Today's middle class families are working longer,
managing new kind of stress and shouldering greater financial risks than previous generation did.
Saving money in a middle class family is stressful as people lack knowledge of finance, poor
budgeting, also people rely on single-income family member, increasing prices of daily goods and
services.
Another barrier is saving in FD's over investing. Most Indian middle class families prefer to keep
their money safe in FD's or saving accounts which do not offer attractive returns that could beat
inflation (Price Rise). Objectives of savings in a middle class family:

• ACCESS TO HIGHER EDUCATION- The reason you don't pursue your school and college
education, master's degree should never be money. Education is expensive, and having savings
can help overcome cost along with tuition payments if any.
• JOB LOSS CUSHION- In today's generation, there is no guarantees for job stability. If you at
any time lose your job and there's no other way of income, having established savings will help
resolve day to day expenses until you get another job.
• EMERGENCIES- Emergencies are those events which occurs at a very uncertain time. They
will be much easier to navigate if you have savings to spend at time of such uncertain events.
When you save money, you can focus on what needs to be done instead of how you can afford
to do it.
• RETIREMENT- Dreaming about retirement and being prepared for it are two different things.
Savings for retirement is important to ensure you have a comfortable future. You can stop
working out of necessity at a reasonable age and still provide for yourself and your family if
you have sufficient savings with you.
• HOMEOWNERSHIP- Having money saved up is one of the first and most important steps to
being able to make a down payment on a potential home. How you turn dream into reality
depends on how much money you can save. With high interest rate and inflation, there is still
a possibility that you can save enough.
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1.2. Need for study

Aggregate savings in any economy, is dependent on a number of inter-dependent

variables. For economic planning, the planner should have an idea regarding the

volume of savings in a different groups of people and the method by which savings

can be improved. To frame appeals for saving there is the need to know about the

saving motive. An understanding of the saving preference will also help in designing

saving instrument which effectively stimulate saving. As observed by Mody (1983),

given the present weight of the household sector in total saving, to step up the saving

in the economy would require a stepping up of the saving rate in the household

sector. Thus, there is the need to carefully understand the determinants of both the

household saving rate and the saving patter.

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1.3. Literature Review

P. Jeevitha and R. Kanya Priya (2019)1 examined the

saving and spending habit of college students with reference
to Coimbatore city. The findings of study declared that
maximum no. of students have saved less than spent but
spending fields were different. The respondents regularly
preferred saving bank account as their saving avenue.
2. Kanting Sechaba Thobejane, Olawale Fatoki (2017)
in his study "Budgeting and spending habits of university
students in South Africa" examined if there is a significant
gender difference in the budgeting and spending habits of university students. The findings of
the study show that the majority of university students do not have a written budget. In
addition, the majority of university students spend on groceries and fast food. Female students
are more likely than male students to have a budget. Recommendations to improve the
budgeting and spending habits university students are suggested.
3. Samantha Villanueva (2017) analyzed the factor affecting spending and saving habits of
college students which showcased the significant difference in spending pattern among both
male and female whose income is only through pocket money from parents and relatives. The
study concluded student spend maximum amount towards fast food, movie, transportation and
balance of pocket money at the end of month in saving for the purpose of future benefit.
4. Folorunsho M Ajide (2015), in his study "The spending pattern among the youths in Lagos,
Nigeria" the analysis showed that there were significant differences in the spending pattern
among male and female youths. and the major source of their income was pocket money got
from relatives and family. It was also reported that a significant positive relationship existed
between pocket money and spending pattern. It was concluded that the youth spend most of
their income towards fast food, movies, transportation in Nigeria.
5. Sandhu and Singh (2015) The study was based on structured primary data. The sample of 50
adopters and 50 non adopters from the universe comprising the city of Kolkata was selected.
The study analyzed in case of adopters that transparency, safety, convenience and economy
judged as an important feature of net trading followed by market quality and liquidity whereas
in case of non-adopters economy and convenience were the important features followed by
the other factors like market quality, safety and liquidity.
6. Avinash Kumar Singh (2015) the study analyzed the investment pattern of people in Bangalore
city and Bhubaneswar and analysis of the study was undertaken with the help of survey
method. After analysis and interpretation of data it is concluded that in Bangalore investors
are more aware about various investment avenues and the risk associated with that

7. V.R. Palanivelu and K. Chandrakumar (2015) examined the Investment choice of salaried
class in Namakkal Taluk, Tamilnadu, India with the help of 100 respondents as a sample size
and it reveals that as per Income level of employees, invest in different avenues. Age factor is
also important while doing Investments.
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 8. Sonali Patil (2014) studied preferred investment avenues among salaried people with
reference to Pune City, India. A sample size of 40 investors has been taken from the Pune City,
India. The result of finding showed 60% investors were aware about the investment avenues
whereas 40% were unaware.
9. Dr. Rekha Atri (2012) Spending and saving habit of youth in the city of Indore with the age
group of 14-30 years were studied. There is a radical difference observed in the spending
behavior of the youth of our country. The study concludes that there is a huge influence of
peer groups in the youth below 19 years while making purchase decisions. A difference was
also observed on the gender wise purchase behavior and their saving habits.
10. Hasan et al, (2012) it is noted that both the male and female youth have different spending
patterns with a slight similarity. Thus, this paper is a healthy insight for the marketing
professionals focusing their brand inventions for the youth as their target market.
l l . Manish Mittal and Vyas (2008): Investors have certain cognitive and emotional weakness
which come in the way of their investment decisions. Over the past few years, behavioral
finance researchers have scientifically shown that investors do not always act rationally. They
have behavioral biases that lead to systematic errors in the way they process information for
investment decision. Many researchers have tried to classify the investors on the basis of their
relative risk taking capacity and the type of investment they make. Empirical evidence also
suggest that factors such as age, income, education, and marital status affect an individual's
investment decision. This paper classifies Indian Investors into different personality types and
explores the relationship between various demographic factors and the investment personality
exhibited by the investors.
12.Kaethikeyan (2001) has conducted research on small investors perception on post office saving
scheme and found that there was significant difference among the four age groups, in the level
of awareness for Kisan Vikas Patra(KVP), National Savings Scheme(NSS), and the deposit
scheme for Retired Employees(DSRE), and the overall score confirmed that the level of
awareness among investors in the old age group was higher than in those of young age group
13. SEBI-NCAER (2000) Study found that household's investment in shares and debentures and
in Mutual Funds ranges from 7% to 9%. Majority of the equity investor's household's portfolio
was found to be undiversified and relatively small value of less than Rs 25,000. It also found
that one set of households, in spite of their lower income and penetration level of consumer
durables, are in the securities market, while another set of households with higher income and
penetration level of consumer durables do not have instruments in the securities market.
14. Dr. Aparna Samudra and Dr. M.A Burghate, International Journal of Social sciences and
Interdisciplinary Research Vol I, No 5, May. The aim of this research was to examine the
investment behavior of the middle income households. The study show that the bank deposits
remain the most preferred investment option of the middle class income households. Small
Saving Schemes such as Public Provident Fund, Post Office Savings Deposits, are the third
preferred investment option as these are secure, even though the return from Investment is
rather less. Shares and Mutual Fund are gaining ground but remain in the fourth position as
these are relatively new and investors are vary of the uncertain returns.
15. International Journal of Research in Commerce and Management, Issue No:5 (May)-
'Study of Investment Pattern and Investment Preference of Individual

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 Households in India'- This study examines the investment pattern and awareness of Indian
investors about different investment instruments such as bank deposits, corporate security
bonds, mutual funds, equity, and preference shares. This research finds the impact of age,
education, occupation, and income level of the individual on investment.
16. Investor Population — the Society for Capital Market Research and Development carries
periodical surveys of household investors to estimate the number of investors. Their first
survey carried out in 1990 estimated the number of shareholders between 90100 lakhs. Their
second survey in mid 1993 estimated the number of shareholders to be 140-150 lakh.

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1.3. Objective of the study
The aim of this research was to examine the investment behavior of the middle income class
household in Kolkata. The rationale behind choosing this research topic is the premise that
the middle class family in India has gained attention of the economists, policy makers and the
marketers, as still their remains a considerable untapped potential in the income class of India.
The research has been conducted to answer few important question on the preference of the
investment instrument and investment pattern of the middle class family household, to know
the various objectives of the investments of the middle class household and to know whether
there has been any increase in their savings and the reason for the same. It is not only the
income of the household that has an immediate bearing on the investment preference but the
age group to which the head of the household belongs that influence the choice of investments
avenue.

Objective of the study:

To understand the various objectives of Investment of the middle class households.

2. To analyse the Investment pattern of middle class families.

3. To evaluate and analyse the Investment preference of middle class families.

4. To offer suggestions for exploring efficient options for channelizing the Investment of middle
class families.

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1.5. Research-Methodology
Research Methodology is a specific procedure or technique used to identify, select, process,
and analyze information about the topic. In a research paper and methodology selection
allows the reader to critically evaluate a study's overall validity and reliability.

Nature of study
The study is descriptive in nature. The data has been
collected by convenience method. The data has been
collected through a questionnaire by primary method.

Data Collection
Primary. Data is the data that is collected for
the first time through personal experience or evidence,
particularly for the research purpose. It is also described as raw data or first- hand
information. The mode of assembling the information is costly, as the analysis is done by an
agency or an external organization, and need human resources and investment. The
investigator supervises and control the data collection process directly. The data is mostly
collected through observations, physical testing, mailed questionnaires, surveys, personal
interviews, telephonic etc.
Secondary Data
Secondary_Datmis a second hand data that is already collected and recorded by some
researchers for their purpose, and not for the current research problem. It is accessible in the
form of data collected from different source such as government publications, censuses,
internal records of the organization, books, journal articles, websites and reports etc. This
method of gathering data is affordable, readily available, and save cost and time. However,
the one disadvantage is that the information assembled is for some other purpose and may
not meet the present research purpose or may not be accurate.

The Methodology Used In Research

The study is based in Primary Data collected through questionnaire through Google Forms.
The data is descriptive in nature. The focus of study is to find the validity and the reliability of
the data used.
Sample Size: 62
Area of Research: Kolkata
Data Collection: Primary (Questionnaire)
Tools Used: Pie Charts, Bar Graph, Column Grap

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1.6.
A small sample of just 62 samples have been taken. No proper conclusions can be drawn from this
small sample size.
l . While preparing the details relating to income, expenditure, saving, etc. one of the debatable issues
is the choice between current price and constant price. Conversion into constant prices will make the
things more realistic and reliable. But one of the major constraints to make such conversion is the non-
availability of an appropriate deflator. Because of these limitations in the present study, the
measurements are made in current prices alone.
2. No records at the state level are available about the saving of the household sector at the state
level. Therefore comparison of the state level saving and investments could not be made with the
sample results.

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1.7. Chapter Planning

CHAPTER-I : Introduction
Here, we discuss in brief about how a middle class family save money and how savings play a
significant role in today's world and then we look at the background of the study, limitations faced,
objectives of the study and the research methodology used. Here we also discussed about the literature
reviews.

CHAPTER-2: Conceptual Framework, National Scenario and International Scenario

Here, we discuss about what actually saving means, it different ways in which we can save, and also
the problems faced by people if we do not save, its national scenario and its international scenario.

Here, we talk about people's spending habits and different types of investment policies by analyzing
the data gathered through a questionnaire with the use of Pie Chart, Bar Graph, Column Graph, their
behavior and degree of satisfaction with investment policies. An effort has been undertaken to
understand how people see upon an opportunity to invest in different types of sectors by analyzing
the primary data that was collected from people.

CHAPTER-4: Conclusion and Recommendation

Here, I sum up the study by learning how a Middle Class Family consider the investment policy, their
preferential types on investment, the choices they are willing to take as consumers and their
awareness about Investment policies.

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CHAPTER-2: CONCEPTUAL FRAMEWORK/ NATIONAL/
INTERNATIONAL SCENARIO

2.1. Conceptual Framework

Meaning of saving
Saving is the portion of income not spent on current expenditure. In other words, it is the
money set aside for future use and not spent immediately. Why should we save money?
Saving can be used to accomplish objectives in the short term such as buying a mobile phone,
or in the longer run such as continuing to study, or else buying a car or a house.
Saving money can also help us cover unexpected expenses, such as an illness, replace an
appliance that cannot be repaired or make an emergency trip.
In addition, savings can be invested and, as a result, you get a profit on the money you have
set aside. That is to say, not only will you have the fund available to spend later, but you will
also earn money in the process.
Saving is a good practice, not only for families, businesses and entrepreneurship, but also for
the economy as a whole. Saving money is a healthy habit that is built on a day-by-day basis.
You should start today to get in a lot of practice in saving until it becomes a habit. The sooner
you start saving, the better.

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Problems faced by Middle Class Family if they do not save

Following are the problems faced by middle class families:

MONETARY PROBLEM - It is one of the most common problem a middle class
man has to deal with. With increasing price of everything from groceries to
petrol, high interest rate, costly insurance premium etc. it is very difficult to
survive if one does not focus on savings. If not taken care of, middle class man
finds himself keen deep in debts, mortgages and loans.
2. QUALITY EDUCATION- A decent education for their kids is something all
parents think about. But with the increase price of goods and services, education
too has caught up in terms of cost. Also, there are additional expenses which
can't be avoided. If not taken care of, middle class parents have to even sell off
few of their assets for their children education.
3. HEALTH- RELATED AND MEDICAL PROBLEMS- Most middle class
families do not have medical insurance. If a particular sum of money is not kept
aside, it is possible that they do not get the best medical treatment. That's what
a common man faces every day.
4. CATCHING UP WITH TECHNOI OGY- The pressure of coping up with the
latest technology is a new issue faced by middle class family as it requires quite
a large sum of money. Advancement of technology in the field of education like
e-learning and eeducation, there is a high demand of advance technology which
surely have an adverse monetary effect on middle class family.
5. ATTENTION DEFICIT AND TENSION IS Al WAYS A COMPANION- Due
to lack of savings in a middle class family, it is very difficult for a common man
to live tension free. Tension is always on their mind. No one takes notice of an
average middle class family and also sometimes they are overlooked and
ignored.
6. CAN'T AFFORD TO DREAM- Being able to dream and fulfilling your dreams
is a whole different thing. Dreams are those which we all have about our future,
our ambitions, our goals, what and where we want to be someday. For fulfilling
all of our dreams we need money and if not saved from starting, a middle class
individual struggles in becoming what they want to be one day.
2.2. National Scenario

The Reserve Bank of India's (RBI) new annual report offers further proof that household
savings in India are dropping rapidly as a proportion of gross domestic product (GDP).
Most of the decline over the past few years is thankfully explained by a decline in
physical savings. Financial savings are relatively more stable. And net financial savings
as a proportion of GDP have actually gone up since the end of FY14 from 7.2% to 7.5%.
Inflation declining faster than interest rates has meant that Indian households now have
greater incentive to keep their money in the financial system rather than buy physical
assets. Those who want premature rate cuts should note this.
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Corporate savings have actually gone up sharply between fiscal 2013 and fiscal 2015- a
sign that companies have begun to mend their balance sheet. Government dis-savings
have also come down, thanks to fiscal consolidation. Yet, the national savings rate has to
increase to support the next wave of asset creation. Indian households' savings rate fell to
the lowest in five years in the year ended 3 1 st march as people drew on their savings to
indulge in a post — pandemic spree, even as inflation eroded their purchasing power.
The corona virus pandemic has led to the accumulation of a large stock of household
savings across advanced economies, significantly above what has historically been
observed. Owing to their large size, the savings accumulated since early 2020 have the
potential to shape the postpandemic recovery.
Several arguments support the central scenario that households will prefer to hold most
of their accumulated excess savings rather than using them to purchase consumption
goods. First, the savings accumulated during the pandemic have mostly accrued to
high income households, who have a lower marginal propensity to spend out of
income or wealth compared with low income households.
Second, households may use part of their accumulated savings to repay debt or to invest
in assets.
Third, Ricardian equivalence effects may weigh on household's propensity to consume,
all else being equal. The considerable income support provided to households and other
policy measures taken during the pandemic led to a strong dis-saving in the public sector
and an associated increase in public debt.
Fourth, the scope for sizable pent-up demand appears limited. While the easing of
mobility restrictions and the progressive reopening of contact-intensive sectors will
relieve household demand for consumption of related services, the latter are less prone
than consumption goods to massive bouts of pent-up demand
2.3. International Scenario
Several arguments support the central scenario that households will prefer to hold most of
their accumulated excess savings rather than using them to purchase consumption goods.
Firstly, the savings accumulated have mostly accrued to high income households, who
have a lower marginal propensity to spend out of income or wealth compared with low
income households. In the United Kingdom, for instance, survey based data show that high
income households increased their savings at times, while lower and middle class
households saved less or even nil saving. Similarly, in the United States there is an
evidence that the distribution of excess savings across income groups is heavily skewed
in favour of high income households and that these savings are held mostly in liquid form
i.e. currency and deposits.
Secondly, households may use part of their accumulated savings to repay debt or to invest
in assets. With regard to financial accounts, the accumulation of large savings has been
associated with a surge in household bank deposits. Prior to the end of 2020 only a small
proportion of these savings had been used to repay debt or purchase assets such as equities.
This liquidity preference could partly reflect high uncertainty among households, in
addition to reduced availability of consumption opportunities.
Thirdly, Ricardian equivalence effects may weigh on households' propensity to consume,
all else being equal. The considerable income support provided to households and other
public measures
taken led to a strong dis-savings in the public sector and an associated increase in public
debt. Tothe extent, that household's expert tax rises aimed at reducing the public debt
accrued over the times. In this regard, it is worth noting that both the US Government and
the UK Government have announced personal income tax increases, which are expected
to weigh on households' propensity to consume.
Fourth, the scope of sizable pent-up demand appears limited. While the easing of mobility
restrictions and the progressive reopening of contact- intensive sectors will relieve
household demand for consumption of related services, the latter are less prone than
consumption goods to massive bouts of pent-up demand. In particulars, while consumers
might have an incentive to switch to more expensive services, there is a limit on the extent
to which they can catch up in terms of missed consumption. Data on real personal
consumption expenditures of US households show that spending on durable and non-
durable goods bounced back quickly after falling considerably in April 2020.
CHAPTER-3: PRESENTATION OF DATA, ANALYSIS, AND
FINDINGS

3.1. Case study

A. Profile Of Respondents
For analysis and interpretation, the following graphs and charts are prepared based on data
obtained from questionnaire.

1.GENDER ANALYSIS

Interpretation• The data has been collected from 51 respondents, out ofwhich 56.9% respondents
are female and 43.1% respondents are males. This has been shown above with the help of a column
graph.
2. AGE GROUP

Interpretation :The data has been collected from 51 respondents out of which 37.3% respondents
are of 26-35% years of age, 58.8% respondents are of age group 18-25, rest 2 % of age group are
above 35 years of age. This has been shown above graphically with the help of a pie chart.
3. OCCUPATION ANALYSIS

Interpretation:-The data has been collected from 51 respondents out of which 41.2% respondents
are self employed , 29.4% respondents are students, 17.6% respondents are from service sector,
11.8% respondents are professionals. This has been shown graphically above in a pie chart.
 4.MONTHLY INCOME ANALYSIS

Interpretation- The data has been collected from 51 respondents out of which 31.4% are on a
monthly income that ranges between 50,000-1,0000 ,56.9% are on 20,000-50,000 ,9.8% are on
1,00,000-50,00,00 and the rest 2 % are above 5,00,000. This has been shown graphically above in
a pie chart.
 5. SAVING NECESSITY

Interpretation: The data has been collected from 51 respondents, out of which 98% respondents
agrees that saving is necessary, but only 2% respondent are not sure . This has been shown
graphically above in a pie chart.
6.SAVING TENDENCY

Interpretation: The data has been collected from 51 respondents, out of which 45.1% respondents
have medium saving tendency,15.7% have low saving tendency and 39.2% have high saving
tendency. This has been shown graphically above in a pie chart.

7.INVESTMENT SOURCE
 Interpretation: The data has been collected from 51 respondents, out of which 62.7% respondents
have investment source from friends and family. 21.6% have investment source from social media
influencers.13.7% have source from tv and newspapers.Rest 2 % come from trading. This has
been shown graphically above in a pie chart.

8.SAVING OBJECTIVE

Interpretation: The data has been collected from 51 respondents, out of which 33.3% saves for
vacations and self gifting.31.4% saves for house/car loans. 21.6% saves for retirement and 2 % for
self and family to live a healthy life. This has been shown graphically above in a pie chart.

9.DECISION MAKER
 Interpretation: The data has been collected from 51 respondents, out of which 47.1% has father
as a decision maker . 27.5% is self , 13.7% has mother as decision maker .7.8 % has grandparent
and only 2 % has full family or nobody as a decision maker .This has been shown graphically
above in a pie chart.

10.INCOME SAVE

Interpretation: The data has been collected from 51 respondents, out of which 47.1% saves 15-
30 % , 21.6% saves 30-50 % ,25.5 % saves 0-15 % 5.9 % save > 50 % .This has been shown
graphically above in a pie chart.

11.TIME PERIOD
 Interpretation: The data has been collected from 51 respondents, out of which 52.9 % saves for
long term >5 year, 31.4% saves for medium term ( 1 year – 5 year ) and 15.7 % saves for short
term < 1 year . This has been shown graphically above in a pie chart.

12.INVESTMENT SECTOR

Interpretation: The data has been collected from 51 respondents, out of which 43.1% saves in
private sector. 35.3% saves in government sector ,17.6 % saves in public sector and 2 % each
invests in every and no specific sector. This has been shown graphically above in a pie chart.
13.PROFITABLE INVESTMENT

Interpretation: The data has been collected from 51 respondents, out of which 25.5 % find equities
more profitable , 39.2 % find mutual deposit more profitable , 33.3 % find fixed deposit more
profitable , and 2 % find both mutual and equities profitable. This has been shown graphically
above in a pie chart.

14.SAVING AND SPENDING STATUS

Interpretation: The data has been collected from 51 respondents, out of which 45.1 % spends more
than saving, 29.4 % saves more than spending and 25.5 % have equal saving and spending status
This has been shown graphically above in a pie chart.

15.HINDRANCE TOWARDS SAVING

 Interpretation: The data has been collected from 51 respondents, out of which 70.06% finds
necessity as a hindrance .17.6% finds advertising as a hindrance.29.4 % finds family and friends
as hindrance,and 5.9 % has other hindrance towards savings.This has been shown graphically
above in a column table .

16.PRODUCT SALE

Interpretation: The data has been collected from 51 respondents, out of which 68.6 % waits for
their favourites product to be on sale and 31.4 % does not wait. This has been shown graphically
above in a pie chart.

17.SHOPPING
 Interpretation: The data has been collected from 51 respondents, out of which 49 % go for
monthly shopping ,33.3 % go quarterly for shopping ,15.7 % go half-yearly for shopping and rest
2 % go yearly for shopping. This has been shown graphically above in a pie chart.

18.CREDIT CARD

Interpretation: The data has been collected from 51 respondents, out of which 51 % sometimes use
their credit card for shopping. 37.3 % never user their credit card for shopping.11.8 % use their
credit card everytime. This has been shown graphically above in a pie chart.
19.CREDIT CARD LIMIT

Interpretation: The data has been collected from 51 respondents, out of which 58.8 % have set a
credit limit and 41.2 % has not set a credit limit. This has been shown graphically above in a pie
chart.
3.2. Data Findings
Major findings in the primary survey are:
l . Most of the people, i.e. 43.1% of the respondents are males and the rest 56.9% respondents are
females.
2. Maximum respondents, i.e. 58.8% respondents fall under the category of age group 18
years to 25 years.
3. It has been observed that 41.2 % of the respondents are self employeed and rest of the
respondents fall under other categories.
4. Monthly Income of the respondents i.e. 56.9% of the respondents earn 20,000-50,000.
5. It has been observed that 98% of respondents find it necessary to save money for their
future.
6. It has been observed that 45.1% respondents have high tendency to save.
7. It has been observed that 62.7 % came to know about investment options from friends
and family .
8. There can be various reasons for which people save. There can be several objectives such
as Retirement, children education, house/car loans and others.
9. It has been seen that 47.1 % of the respondents has father as the decision maker
regarding finances at home
10. It wholly depends on people to, how much they want to save. It has been seen that 47.1%
of the respondents save about 0%-15% of their income.
ll. 52.9 % respondents save for a short period of time, 31.4% respondents save money for about I
year-5 years, and 15.7% respondents save money for a long period of time.
12. Most people i.e. 43.1% respondents invest their money in private sector, 17.6 % invest
their money in public sector, 35.3% respondents invest money in government sector, and the
remaining respondents invest their money in some other sector.
13. It has been observed that 39.2% respondents find Mutual deposits more profitable than any
other form of investment i.e. Fixed Deposits, Equities and others.
14. It has been observed that 44% of the respondents believe in spending more than savings.

43
15. It has been noticed that 70.6 % find necessity to cause hindrance towards savings.
16. 68.6% respondents prefer to wait for their favorite products to be on sale.
17. It has been observed that 49% respondents adopts monthly shopping.
18. It has been observed that almost 51% of the respondents sometime use credit cards, 37.3%
of the respondents never use credit card , and only 11.8% of the respondents use their credit cards
every time.

19. Out of the respondents who uses credit cards, 58.8% of the respondents have set their
credit cards limit, and only 41.2 % of the respondents have not set their credit card limits.

This questionnaire has helped me to understand that people are well aware of the saving necessity
and objectives.
CHAPTER-4: CONCLUSION AND RECOMMENDATIONS
4.1. Conclusion
People tend to be fairly thoughtful decision makers, and therefore tent to avoid risk. It is
conceivable to conclude from this work of literature that each individual needs to make a plan for
their retirement and manage their own finances to have a happy retirement. Every person must
have a financial plan to meet their monetary objectives and obligations, help them retire
comfortably, attain financial freedom, make sensible decisions, and make the most of every
financial opportunity. Since none of us are born with this wisdom, we must educate ourselves on
how to budget and plan for our futures. Not only will this help us live happier lives, but it will
also, in the long term, make a valuable impact on the growth of our country.
It was also concluded from the research study that saving and investment behavior of middle class
family was influenced by a number of demographic variables like type of education, employment
status, profitability of an investment, in which sector we must invest, etc.
All of the above mentioned variables have significant effect on saving as well as on investment
behavior of the middle class family, with permanent type of employment saving and investment
behavior changes in positive direction in line with theory permanent income, with education
choice of children changes and educated family prefer small family where dependency on head
decreases hence income goes to saving and investment.
4.2 Recommendation
1. Recognition rather than recall- People must have access to all information, including light
stimuli, alternatives, tasks, and commands, in order to reduce cognitive burden and prevent
decision-making that is susceptible to mistakes done at times of savings and investments.
2. Help people recognize, diagnose, and recover from errors: Create failure warnings in
vocabulary that is understandable to humans and provide guidance and instructions about
ways to fix or eventually recovering through them.
3. We may expand our efforts by conducting better-detailed surveys with more complex tasks
and questions. In future attempts, developers can continue the following to improve:
More difficult tasks can be applied to get a better understanding on how complex they
actually are and what can be done in order to prevent it.
Additional users will be surveyed as increasing the number of user responses increases
the accuracy of the results.
This research may be carried out for various sectors like Public sector, Private sector,
Government sector, etc.
Many other design principles can be used to make Investment better. Combination on
various factor principles can also make the Investment better.
4. It is absolutely essential to save your income what you earn, to have a plan for your future,
and to resist spending funds that you do not already have. Mutual fund is also found as
35
 most favored option by the youngsters today. Investment in mutual funds through the way
of Systematic Investment Plan (SIP) is a favored investment option by the youngsters.
5. Awareness programs needs to be conducted by stock broking firms, because most of the
respondents i.e. investors are thinking that these avenues are loss making and are having
no good return on it. Hence the researchers have concluded that most of the investors prefer
secured regular income on investment in the study area.
6. Also awareness program to invest in commodity and debt market should be there.

BIBLIOGRAPHY
It is list of works cited, a bibliography may appear at the end of a book, report, online presentation,
or research paper.
A.K. Vashisht, R.K. Gupta, Investment Management and Stock Market, Deep and Deep
Publications Pvt Ltd, new delhi.
2. Rakshit, Mihir (1982): "Income Saving and Capital formation in India", Economic and
Political Weekly (EPW) 18 May, pp 753-766.
3. Dr.Aparna Samudra & Dr. MA Bhuhurghate- A study of investment behaviours of middle
class households- International Journal of Social Sciences and Interdisciplinary Research,
vol 1, No 5, May 2012.
4. Avadhani VA, Investment Management, Himalaya Publication, New Delhi.
5. N Geetha & M Ramesh- A study of relevance of Demographic factors in Investment
Decisions,- International Journal of Financial Management, Vol l, Issue l, August 2012.
6. Financial Education: Middle Income Group — Securities and Exchange Board of India.
7. The Middle Class in India, Issues and Opportunities, Duetsche Bank research, February
15, 2010.
8. A study on Preferred Investment Avenues among Salaried People with Reference to
Namakkal Taluk, Tamil Nadu, India — V.R. Palanivelu & K. Chandrakumar, The 2013
IBEA, International Conference on Business, Economics, and Accounting, 20-23 March.
36
 9. http://www_ Investorwords.com
QUESTIONNAIRE
Greetings everyone,
I am Simran Kaur , a final year student pursuing B.Com(Hons) from The Bhawanipur Education
Society College, Kolkata. I am preparing a survey on "Saving Habits of Middle Class People".
I request you to kindly fill the questionnaire below and I assure you that the data generated shall
remain confidential.
QUESTIONS
QI. Gender
A. Male
B. Female
Q2. Age
A. Below 18 years
B. 18years-25years
C. 26years-35years D. Above 35 years
Q3. Occupation
A. Self employed
B. Professional
C. Service

Q4. Monthly Income

Q5. Do you feel investment is necessary for future purposes?

A. Yes
B. No
C.Maybe

Q6. What is your saving tendency?

A. High
B. Medium C. Low

37
Q7. From which source you come to know about investment options?
A. TV, Newspaper
B. Friends and family C. Social media influencers.
D.Trading
Q8. What is your saving objectives?
A. Children education
B. Retirement
C. House/car loans D. Vacation / self gifting
E. For self and family to live a healthy life
Q9. Who is the decision maker regarding finance at your home ?
A. You B.Father C.Mother D.Grandparents
E.Nobody
F. Full family
QIO. What % of income you save?

QIl . Time period for your savings?

A. Short term (<l year)
B. Medium term (lyear-5 year) C. Long term (>5 years)
Q12. In which sector you prefer to invest?
A. Private sector
B. Public sector
C. Government sector
D. No specific sector
E. Every

Q13. Which investment do you feel more profitable?

A. Fixed Deposit
B. Mutual Funds
C. Equities D. Both mutual and equities
Q14. What is your spending and saving status?
A. Saving more than Spending
B. Spending more than Saving
C. Equal saving and spending status
Q15.what factors cause hindrance towards your saving ?
A.Necessity
B.Advertising (impulse purchase )
C.Friends and family
D.Others

Q16.Do you wait for your favourite product to be on sale ?

A yes
B no

Q17.How frequently you go for shopping ?

A.Monthly
B.Quaterly
C.Half-yearly
D.yearly

Q18.Do you use credit card for shopping ?

A Everytime
B sometimes
C never

Q19.Have you setv your credit card limit ?

A yes
B no