A STUDY ON FINANCIAL LITERACY AMONG THE

COLLEGE STUDENTS WITH SPECIAL REFERENCE

TO JNANA JYOTHI FINANCIAL LITERACY TRUST
Mahammad Rizwan1, Mahammad Sadhik2, K S Kishan Kumar3
1,2,3
Department of P.G Studies in Commerce, Sacred Heart College Madanthyar, Belthangady Taluku
D.K , Karnataka, (India)

ABSTRACT
Financial literacy is increasingly important as it has become essential that individuals acquire the skills to be
able to survive in modern society and cope with the increasing diversity and complexity of financial products
and services available. Financial literacy is the ability to make informed judgments and to take effective
decisions regarding the use and management of money. It enables individuals to improve their overall well-
being and to plan for their future security. The main objective of the study is to analyse the level of financial
literacy among the college students and to determine the need for financial literacy programmes on college
campus, and current student’s desires for these programs. Both the primary and secondary data has been used
in this study. Convenience sampling method is used in collecting the data and this study surveys 30 college
students to examine their personal financial literacy. This paper seeks to examine the role of Jnana Jyothi
Financial Literacy Trust and their literacy programmes in developing the financial knowledge among the
college students.

Keywords: Financial Literacy, Financial Inclusion, Jnana Jyothi Financial Literacy Trust,
Savings habit

I. INTRODUCTION

Financial literacy means the ability to make informed judgments and to take effective decisions regarding the
use and management of money or it is the ability to manage personal finance. The people should need proper
plans for long-term investments for their future aspects of emergency needs. On the other hand, students should
hold strong financial literacy about personal finance to take decision on investment when they started to earn.
Additionally, they must manage their own medical and life insurance needs.
In these days the younger generation, specially the students are lacking in their financial decisions. They love
spending rather than saving. By keeping the future in mind the students should develop the habit of saving and
they should be aware about the various financial services and facilities provided by banks, which will influence
them to make sound decisions and to plan the safe and better future.

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II. FINANCIAL LITERACY AND FINANCIAL INCLUSION
2.1 Financial Literacy
It refers to knowledge required for managing personal finance. It encompasses an understanding of how to use
credit responsibly, manage money and savings, minimize financial risk and derive long-term benefits.
Financial literacy is an integral part of the financial inclusion. It is not just about imparting the financial
knowledge and information. It is also about changing the behaviour in the financial pattern and activities of
individuals. The ultimate goal is empowerment of people to take action by them that is in their self-interest.
When the people know about the financial products available and when they are able to evaluate the merits and
demerits of each product and suitability of the product for their specific needs, they are in a better position to
decide what they want and feel empowered in a meaningful way.

2.2 Financial Inclusion

"Financial Inclusion is defined as the process of ensuring access to financial services and timely and adequate
credit where needed, by groups such as weaker sections and low income groups at an affordable cost.” Thus
financial inclusion acts as an effective instrument to alleviate poverty.
India is the second largest populated country after China in the world. More than 60 per cent population makes
its living in villages. India has recognized since fifties that for long term sustainability of economic prosperity
and social development, growth to rural India is critical. The Government of India and Reserve Bank of India
have taken series of measures to take financial services to masses, although, the term Financial Inclusion was
not in vogue then

III. IMPORTANCE OF FINANCIAL LITERACY

Financial literacy is important as financial markets have become increasingly complex and there is information
asymmetry between markets and the common people. It is difficult for the common people to make informed
choices
 Equips a individual with the knowledge required to choose from a large number of financial products and
financial providers.
 Helps individuals by providing the financial knowledge necessary to initiate savings plans, manage the
savings and make proper investments for a safe future.
 Financial sector reforms transfer the responsibility of financial decision making to individuals.
 Leads to consumer protection as the individual is able to make informed choices.

IV. JNANA JYOTHI FINANCIAL LITERACY AND CREDIT COUNSELLING TRUST

As per RBI guidelines and in pursuance of decision taken in the Karnataka State Level Bankers Committee
meeting held on 28th July 2010,Syndicate Bank and Vijaya Bank who have Lead Bank responsibility in 10
districts of the state have jointly sponsored Jnana Jyothi Financial Literacy and Credit Counselling Trust with its

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headquarters at Manipal. The sponsor bank and its Regional Rural Banks have 1578 branches in the state. Sri D
T Pai is the present Chairman cum Managing Trustee (Former Chairman & Managing Director of Syndicate
Bank and Banking Ombudsman).
V. THE OBJECTIVES OF THE TRUST

 To promote savings habit the individuals

 To educate the people in rural and urban areas with regard to various financial products and services
available from the formal financial sector
 To make the people aware of the advantages of being connected with the formal financial sector.

VI. FREE SERVICES RENDERED BY THE TRUST TO CUSTOMERS OF ALL THE

BANKS

1. Disseminating information on Financial Services and General Banking.

2. Extending Financial Education
3. Preventive Credit Counselling: Bringing awareness of credit facilities available from Banks, need for
availing credit on the basis of repaying capacity

VII. OBJECTIVES OF THE STUDY

 To know the awareness about Jnana Jyothi Financial Literacy Trust among the college students.
 To analyse the role of Jnana Jyothi Financial Literacy Trust in developing financial literacy among the
college students of Belthangady Taluk.
 To analyse the changes in the savings habit of the students before and after the financial literacy programme
by the Jnana Jyothi Trust.

VIII. SCOPE OF THE STUDY

The scope of the study is restricted to Belthangady Taluk only. In this study the researcher has evaluated the awareness level
about the financial literacy and this report gives a clear view of the role of Jnana Jyothi Financial Literacy Trust in
developing financial literacy among the students of Belthangady. The findings of the study and conclusion drawn are based
on the analysis of the information collected by intern through questionnaire and communication.

IX. METHODOLOGY

The present study is based on primary data and secondary data.

 Primary data:-Primary data was collected from administering structured questionnaire to selected
respondents. The respondents were selected on convenient random sampling.
 Secondary Data:-Secondary data was collected from published and unpublished sources. Further, websites
were also depended upon for few secondary data.
 Sampling Size:-The study was made on 30 Respondents.

X. LIMITATIONS

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Following are the limitations of the study.
 Only questionnaire method was used to measure the Financial Literacy among the college students.
 Opinion of the respondents is not final, because the opinion or preference may differ from time to time
depending on the situation.
 The Respondents may not aware and about the recent banking technologies facilities provided by Banks.

XI. DATA ANALYSIS AND INTERPRETATION

Table no 1: Gender of the Respondents
Particulars No of Respondents Percentage
Male 17 56.67
Female 13 43.33
Total 30 100
Source: Primary Data
The above table shows that around 56.7% of the respondents are male and 43.3% of the respondents are female.
We can find the majority of the respondents were male
Table no 2: Need for Financial Education in Schools and Colleges
No of the
Particulars Respondents Percentage
Yes 30 100
No 0 0
Total 30 100
Source: Primary Data
The above table express that 100% of the respondents are of the opinion that there is a high need for financial
education in schools and colleges.
Table no 3: Awareness about Jnana Jyothi Financial Literacy Programme Among the
Respondents
Particulars No of Respondents Percentage
Highly aware 2 6.67
Aware 5 16.67
Somewhat aware 10 33.33
Not aware 13 43.33
Total 30 100
Source: Primary Data
The above table says majority of the respondents (43.33%) aware about the jnana jyothi financial trust, 33.33%
of the Respondents are somewhat aware about the trust. Only 6.67%of them were highly aware about the Jnana
Jyothi trust situated in the Belthangady. And around 16.67% were knowing about the trust.

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 Table No 3: Monthly Deposit Out of Monthly Savings of Respondents Before and After
Introduction of Jnana Jyothi Financial Literacy Programme
Particulars Before Percentage After Percentage
Below Rs 100 15 50 10 33.33
Rs 101-Rs 250 9 30 12 40
Rs 251-RS 400 6 20 8 26.67
Above Rs 400 0 0 0 0
Total 30 30 30 100
Source: Primary Data
The above table clearly shows the changes in the amount of deposit to the bank after the introduction of
financial literacy programme to the Respondents. Earlier 50% of the Respondents were save and deposit below
100 Rs to the bank. And 30% 0f the respondent deposited Rs 101- Rs 250, which was increased up to 40% after
the introduction of the financial literacy programme by the Jnana Jyothi trust. Same was the case where only
20% of the respondents were used to deposit from Rs 251-Rs 400, but it was raised up to 26.7% after the
Respondents were introduced to the financial literacy programme by the Jnana Jyothi trust.
Table no 5: Satisfaction Level of the Respondents About the Financial Education Given by the
Jnana Jyothi Financial Literacy Trust.
Not
Express Factors Highly satisfied Satisfied Average satisfied
Quality of
information 7 12 7 3
Language used 10 15 5 0
Material used 4 14 10 2
Time period taken 5 9 12 4
Source: Primary Data
From the above table it is clear that majority of the respondents are satisfied with the overall performance of the
trust. The respondents were satisfied with the quality of information, language used, material used, time period
taken by the officials of the Jnana Jyothi trust while educating them with regards to the financial aspects

XII. FINDINGS, SUGGESTIONS AND CONCLUSION

12.1 Findings
 The majority of the respondents were male (57%), and rest them (43%) were female respondents.
 It is found out that all the respondents are having the opinion that there is a high need for financial
education in schools and colleges. This is because, the students are unaware about any financial products
and services provided by Banks. Thus there is an need of financial education.

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 Majority of the respondents (43.33%) were not aware about the Jnana Jyothi financial literacy trust. This is
because there no aggressive promotion of the trust in the public.
 It is found out from the study that there is positive change in saving as well as deposit of the saving in the
bank of the respondents. It shows the influence of the trust in promoting savings habit among the college
students.
 Majority of the respondents are satisfied with the overall performance of the trust. The respondents were
satisfied with the quality of information, language used, material used, time period taken by the officials of
the Jnana Jyothi trust while educating them with regards to the financial aspects.

12.2 Suggestions
 The saving habit of the students should be encouraged and promoted.
 Proper financial literacy programmes should be conducted in schools and colleges
 The financial Institutions like Banks/LIC Company/Postal Service should create awareness among their
customer about the new technologies and they should provide financial literacy programmes in schools and
colleges

12.3 CONCLUSION

While it is important to begin teaching financial skills at school level, achieving and maintaining financial
know-how is a lifelong undertaking. The types of financial decisions that people have to make vary through the
course of their lives, and thus an attempt has been made by the trust to ensure that access to financial education
is readily available at all stages of life.. Moreover, relevant, accurate, and reliable financial information must be
readily available to consumers at the time they are making their decisions. Through financial education, the trust
is trying to provide students with the knowledge and skills they need to make better choices about finances and
safeguarding individuals against harmful practices and bad information that lead to poor financial choices.
Accomplishing these two goals we believe will result in economic empowerment for all concerned.

REFERENCE
Journals
[1]. Pi.T.D. All about financial literacy and inclusion and new challenge, the Indian banker, Mumbai. nov.2012
[2]. Lusardi, A and Tufano, p.(2009)Debt literacy, financial experiences, and over indebtedness, CFS Working
Paper No.2009/08

Websites
[3]. http;//financiallit.org/about/background.aspx
[4]. http://jnanajyothiflcc.com/Form/contactUs.aspx?linkId=35
[5]. http;//www.oecd.org/finance/financial -education/37742200.pdf
[6]. http;//en.wikipedia.org/wiki/Financial literacy
[7]. http;//articles.economictimes.indiatimes.com/2012-07

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