INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 8, ISSUE 09, SEPTEMBER 2019 ISSN 2277-8616

Measuring Perception Of Punjab’s People In

Personal Financial Planning Using Psychometric
Scale
Er. Gurpreet Singh, Er. Nitika Kapoor, Dr. Sandeep Singh Kang

Abstract: This study attempts to analyze the perception of people of Punjab towards personal financial planning. To measure the perception of people of
Punjab characteristics namely attitudes, factor influencing, and frequency of money management, investment, insurance, retirement, and estate planning
were considered. A well structured close-ended questionnaire was used to interview 600 individuals. The overall results showed that people of Punjab
have positive attitudes towards various aspects of personal financial planning but there is margin for improvement for certain groups. Perhaps the
services of certified financial planners could be utilized for improvement. Male respondents were found to be better at making financial decisions than
their female counterparts. Married individuals responded more positively then unmarried individuals. Results had shown that job status serves as a crucial
factor for attitudes towards personal financial planning. Employed individuals were found to be far better planners than self-employed and unemployed
individuals.

Index Terms: Estate Planning, Insurance Planning, Investment Planning, Money Management, Perception, Personal Financial Planning (PFP), Punjab,
Retirement Planning
——————————  ——————————

1. INTRODUCTION from time to time. Gitman et al. (2014) discussed the dynamic
Personal financial planning is the topic of attentiveness in nature of financial planning. As needs and goals changes,
forever changing a modernized economy. There have been revisions should be made to the financial plan. Change in
innumerable publications in the form academic journals, books income too requires appropriate changes in the financial plan.
and printing press in the field of PFP in Europe and North Financial shocks like divorce or death of a spouse, loss of a
America, but there are scarcely any publications in India.PFP job, a long illness or aging parents could be overcome with a
is often mistaken as managing money or taxes or investments, carefully drafted plan [2].
although this statement is not true. Yen et al. (2015) define
PFP as analysis of individual current finances by taking all
known variables into account to envision long and short term
requirements [5]. According to FPSB (Financial Planning
Standard Board) India ―PFP is the process of acquiring your
life goals by managing your finances properly‖ [16]. Life goals
can be different for individuals, for some it could be a lavish
lifestyle after retirement, for some it could be buying a house,
for some, it could be funds for a child's education. PFP
provides interpretation and regulation to your financial
decisions.PFP makes it easy for individuals to understand the
impact of your financial decisions on other areas of their
finances. Kapoor et al. (2004) stated that ―PFP can pave the
way to achieve personal economic satisfaction by merely
managing your money‖ [1]. To be economically satisfied
throughout a lifetime individuals should manage their money
carefully, along with it plan their estate, investment, insurance,
and retirement. Numerous factors like Age, gender, income,
job status and education of an individual could impact the
decisions of their PFP.
PFP is a dynamic process; revisions should be made in plan

———————————————— Fig. 1. Aspects of Personal Financial Planning.

 Er. Gurpreet Singh is currently pursuing a masters degree Altfest(2004) discussed the process of PFP as an activity that
program in computer science engineering in Chandigarh precisely combines all elements of financial interest to a
University India, PH-+919855000794. E-mail: person. Those elements include tax planning in order to slash
[email protected]
 Er. Nitika Kapoor is currently Assistance Professor in
taxes, cash flow planning by spending carefully, Risk
computer science engineering department at Chandigarh management by properly planning insurances, investments
University, India. E-mail: [email protected] planning by utilizing investment opportunities, estate planning
 Dr. Sandeep Singh Kang is currently Professor in computer by ascertaining proceedings of the estate after demise,
science engineering department at Chandigarh University, retirement planning by planning appropriate sources of income
India. E-mail: [email protected] after retirement‖ [3]Gitman et al (2014) discussed major
aspects of financial planning as money management,
investment planning, retirement planning, insurance planning,
and estate planning [2]. These are identical to those described
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by Altfest, tax planning and cash flow planning are combined very positive. Students consider investing very important and
into one aspect i.e. money management and insurance they indicated that it is crucial to consider different investment
management is used as a synonym for risk management. Lai alternatives available before investing. Student’s attitude
et al. (2009), Jamal et al (2013), Deventer et al. (2014), Ying et toward insurance, estate, retirement planning was found to be
al(2017) also used same aspects of PFP [6][7][12].Personal positive. They were confident enough to make plans for
Financial Planning concerns everyone. Personal Financial themselves and do not seek help from professionals.
Planning can help in cash flow elevation, increased family [7].Agarwal et al. (2015) conducted a survey on the Indian
security, the standard of living and savings and assets growth. population to determine their financial literacy and investment
Long term thinking and planning enhances short term decision pattern. Findings indicate that most of Indians are financially
making could be improved with a financial plan. For financial literate, male respondents were more literate than their female
triumph in life, individuals should plan their finances. To counterparts. Education is a crucial factor, respondents with
improve the PFP of individuals, awareness is needed for higher education level were more financially literate and more
groups lacking the required skills. But there are no studies aggressive while making investment decisions [9].Schuchardt
conducted to date in Punjab region to find the perception of et al. (2007) discussed financial planning as an
people towards Personal Financial Planning. This paper fills interdisciplinary profession that makes use of various
that gap by measuring the perception of Punjab’s people disciplines such as psychology, sociology, and economics to
towards various aspects of PFP. The findings of this study will determine spending and saving pattern of the individuals.
be tremendously useful for customizing the needs of Every decision an individual makes influence public and
individuals required to draft an effectual financial plan based private sector markets. In this discussed model individuals
on marital status, gender, and job status. were central and their every single decision had an impact on
financial markets around them. Financial markets tend to use
2 LITERATURE REVIEW individuals recognized patterns to devise attractive investment
Graham et al. (2002) concluded that women investors seem to schemes [13].Denton et al. (2004) discussed retirement
be both to be more disinclined and less confident while making planning majorly consists of three domains. First domain was
investment decisions than their men counterpart under similar self-insurance which refers to the funds required after
situations. Male investors are more confident while making retirement considering factors like health issues, monthly cash
investment decisions. The reason for the low confidence of flow to cope with daily needs. Second domain was self-
female investors is because of less exposure to financial protection which deals with a nonmonetary plan associated
literacy. More confident female investors may have a moderate with health and wellness after retirement. Public protection
effect on stock market [11].Murphy et al. (2010) stated that was the third domain which refers to utilizing government
even highly educated people are seeking help from provided plans to ensure health, wellness as well as monetary
professionals for drafting their financial plans. Two hundred benefits [22].Debelle (2004) discussed that monetary planning
and six MBA students were interviewed by Authors to is crucial and the most important factor of PFP. The study
determine their attitudes towards PFP. Participants were asked discussed the dynamic nature of PFP which requires constant
about the importance and need for a financial plan to meet revisions. Discussed model was comprised of five steps
their life goals and whether they were confident enough to assessing all available cash inflows, setting achievable short
make a financial plan for themselves or they need assistance term and long term goals, creating a sophisticated plan to
from someone. The paper concluded that most of them achieve those goals, execution of the plan, monitoring the plan
recognize the importance of a financial plan in individual’s life for its shortcomings, and reassessing and modifying the flan to
and individuals should have a superior financial plan to remove shortcomings [19].Sharma et al. (2011) conducted a
achieve their goals, but they were not very confident about survey on 56 people to find out the relation between the level
drafting a financial plan for themselves. Most respondents of personal financial knowledge and day to day financial
acknowledged professional planner as the most reliable behaviors of individuals. Findings of the study were rather
source for devising a financial plan for them [4].Arrondel et al. disturbing as results had shown financial knowledge of
(2013) confirmed that most financially illiterate individuals were individuals was below average and daily financial behaviors
either young adults who were either unemployed or freshly were even worse. Individuals ignored monetary planning to
employed, women mostly housewives, less literate and the ensure prosperous future, instead leaked cash with
elderly. These people showed apathy in drafting a financial unnecessary expenses [20].Walczak et al (2018) conducted a
plan for the fulfillment of their life goals. Other disturbing study to find gender differences in financial behaviors and
findings suggest that even financially literate individuals of concluded that men utilized financial services more actively.
these groups tend to be impatient towards their money and Women were less likely to take risk while investing. Financial
don’t consider saving it for future [14].Buie et al. (2011) literacy and less interest in reading activity was the reason for
discussed that financial planning is a combination of interior the difference in perception of two genders [15].
and exterior sciences. Some of the interior sciences are
enlisted as psychology, sociology, neuroscience, 3 RESEARCH GAP
neuroeconomics, behavioral finance, communication, and There are scarcely any studies done in the domain of Personal
exterior sciences are enlisted as finance, economics, Financial Planning in India and particularly in the state of
investment theory, complexity theory, risk management. Paper Punjab. Previous studies conducted in India were focused on
discusses that one must master both to draft a superior finding the perception of a particular group such as retired
financial plan. [10].Deventer et al. (2014) conducted a study individuals, university students, and women towards a specific
on students of age 18-22 years to determine their attitudes aspect of PFP. To our best knowledge, a study including
towards PFP. The study concluded that students actively individuals of all age groups, education qualifications, and
involve themselves in PFP and their attitudes towards PFP are income groups incorporating all aspects of PFP has never
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been conducted in India. This study will help banks as well as

other financial institutions to understand the behavior of people H1: there is no significant in the perception of the various
towards finances. aspects of personal financial planning regardless of the
individual’s marital status.
4 OBJECTIVES
 To find the perception of people of Punjab towards One way ANOVA (analysis of variance) was used to examine
financial planning. the third hypothesis. ANOVA could be put into force while
 To find the impact of gender on personal financial finding the mean difference between three or more than three
planning. dependent variables. Tukey's test was deployed as a post hoc
 To find the impact of marital status on personal test because of ANOVA is an omnibus test. Following was null
financial planning. hypotheses examined using ANOVA:
 To find the impact of job status on personal financial
planning. H0: there is no significant in the perception of the various
aspects of personal financial planning regardless of the
5 DATA AND METHOD individual’s job status.
6 RESULTS AND DISCUSSION
As secondary data was not available for the study, research
objectives were achieved by collecting primary data. The
6.1 Reliability test of the questionnaire
researcher himself conducted a survey at various branches of
Cronbach’s alpha was put in force to approve the reliability of
HDFC and SBI banks of four major cities (Amritsar, Jalandhar,
the questionnaire. A questionnaire with Cronbach’s alpha
Ludhiana, and Mohali) of Punjab via a well structured close-
value greater than .70 is considered reliable [17]. All aspects
ended questionnaire.The survey was conducted over a period
were found reliable by Cronbach’s alpha and the results are
of two months. A total of 800 and 200 personals (100 male
shown in Table 1.
and 100 female) from each city were randomly selected for the
survey. Invalid or improperly filled questionnaire from Amritsar,
Table 1: Reliability test of the questionnaire using Cronbach’s
Jalandhar, Ludhiana, and Mohali were twenty-six, twenty-two,
alpha
fourteen, twenty-one respectively. Sample of 150 properly The dimension of Cronbach’s Cronbach’s Alpha No of
filled questionnaires consisting of 75 male and 75 female from Customer Perception alpha Based on items
each city were randomly selected and used for analysis and Standardized
conclusion of the study.The questionnaire was designed using Items
a close-ended structure. This approach allowed the anonymity Perception of .850 .836 10
of respondents and unbiased responses while answering customers towards
money management
questions related to their finances. There were four sections in Perception of .866 .852 12
the questionnaire. The first section of the questionnaire deals customers towards
with demographic questions. The other three parts deals with insurance planning
questions about financial planning and each of these sections Perception of .873 .861 11
were further divided into five sub-sections.The second part of customers towards
the questionnaire contained questions to determine the investment planning
Perception of .847 .841 11
attitudes of individuals regarding various aspects of PFP. As customers towards
the questionnaire was designed using close-ended structure, retirement planning
individuals could only record their answers choosing an option Perception of .875 .846 9
on a scale of strongly disagree to strongly agree. Next part customers towards
was a set of questions concerning factors influencing the estate planning
decision on various aspects of PFP. Individuals recorded their Source: Primary Data
responses ranging from not an influence to great influence.
The fourth and last section was a series of questions to Table 2 describes the profile of all respondents. Male and
determine the approaches of masses used to manage various female respondents were 300 each. Respondents under 20,
aspects of PFP. Respondent’s response to each question was 21-30, 31-40, 41-60, over 60 years were seventy-seven, two
―never‖, ―rarely‖, ―neutral‖, ―sometimes‖ or ―often‖ on their hundred and eighteen, one hundred and three, ninety-four,
management skills of money, insurance, investment, fifty-two and fifty-six respectively. Married, unmarried
retirement, and estate management. respondents are 377 and 223 and employed, self-employed,
unemployed respondents are 402, 83, and 115 respectively.
5.1 Null Hypotheses
Three null hypotheses were tested for this study. When trying Table 3 represents the respondents’ attitudes toward PFP.
to find whether or not there is a significant mean difference in These results were evaluated on a scale of strongly disagree
a dependent variable between the two groups, t-Test could be being 0 to strongly agree being 4. Results show that people of
implemented. Two null hypotheses were examined using t-test Punjab have a positive attitude towards money management.
with 95% confidence i.e. null hypothesis would be rejected if While spending and budgeting money males were far more
significance (p) is less than 0.05. Following were null careful than their female counterparts. Married people were
hypotheses examined using t-Test: also found to be more positive than unmarried people while
spending and budgeting. Both genders concur that money is
H0: there is no significant in the perception of the various one’s achievement. While spending and budgeting money
aspects of personal financial planning regardless of the males were far more careful than their female counterparts.
individual’s gender. Findings are consistent with Shobha et.al (2015), who
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concluded that women needed to improve their financial skills Status Married 377 62.8%
[21]. Married people were also found to be more positive than Under 15000 102 17.0%
unmarried people while spending and budgeting. Both 15001-30000 170 28.3%
genders concur that money is one’s achievement. Income per 30001-45000 122 20.3%
Month 45001-60000 102 17.0%
60001-75000 53 8.8%
Table 2: Demographic Characteristics
Over 75000 51 8.5%
Variable Respondents Respondents
Employed 402 67.0%
(n) (%)
Job Status Self Employed 83 13.8%
Male 300 50.0%
Gender Unemployed 115 19.2%
Female 300 50.0%
Under 20 77 12.8% n=Number of Respondents
21-30 218 36.3% Source: Primary Data
31-40 103 17.2%
Age
41-50 94 15.7% Females and unmarried people showed less enthusiasm for
51-60 52 8.7% insurance planning. Although most respondents were found to
Over 60 56 9.3% have an adequate insurance plan, it was more of forced
Under +2 87 14.5% saving in the event of death. As unmarried people have no
Diploma 107 17.8% family to take care in the event of death, this could be a reason
Bachelor Degree(General) 114 19.0%
for the less interest shown in insurance planning them. Both
Education Bachelor
Level Degree(Professional)
144 24.0% female and unmarried people were found to be less confident
Master Degree(General) 56 9.3% while choosing an insurance plan.
Master Degree(Professional) 64 10.7% Both male and female respondents’ attitude was found
Ph.D. 28 4.7% positive towards investment planning as both genders share
Marital Unmarried 223 37.2%

.
Table 3: Individual’s attitudes toward Personal Financial Planning
Mean Std. Mean (Gender) p Mean (Martial p1
Variable Devi. status)
Money Management
I am careful while spending money. 2.72 1.216 M(2.86)>F(2.57) 0.004 M(2.96)>U(2.30) 0.001
I carefully budget my money. 2.75 1.211 M(2.92)>F(2.57) 0.021 M(2.95)>U(2.39) 0.001
Money symbolizes success. 2.91 1.128 M(3.09)>F(2.72) 0.011 M(3.11)>U(2.56) 0.001
Money reflects individual’s achievements. 3.33 .911 - 0.370 M(3.46)>U(3.11) 0.020
Insurance Planning
I see insurance as my pivotal investment. 2.95 .895 M(3.12)>F(2.78) 0.030 - 0.188
I see insurance as my retirement fund. 2.88 1.022 M(3.06)>F(2.71) 0.020 M(3.10)>U(2.51) 0.011
I see insurance as forces saving to ensure income to family in 0.010 M(3.26)>U(2.56) 0.007
3.00 1.004 M(3.18)>F(2.82)
the event of my demise.
I have an adequate insurance plan. 2.99 1.084 M(3.17)>F(2.81) 0.012 M(3.24)>U(2.57) 0.001
I see insurance as replacement income if I ever become 0.002 M(3.03)>U(2.30) 0.003
2.76 1.195 M(2.91)>F(2.61)
disabled.
I am uncertain about purchasing a suitable insurance plan. 2.42 1.084 - 0.063 M(2.29)<U(2.65) 0.034
Investment Planning
It is essential to invest nowadays. 3.28 .910 - 0.228 M(3.40)>U(3.06) 0.038
Investing is crucial to accomplish long-term goals. 2.94 1.080 M(3.11)>F(2.76) 0.010 M(3.12)>U(2.61) 0.002
Investment is a path to long-term financial triumph. 2.99 1.032 M(3.18)>F(2.80) 0.003 M(3.17)>U(2.69) 0.001
I am highly satisfied with my investments. 2.78 1.164 M(2.91)>F(2.65) 0.006 M(3.01)>U(2.39) 0.003
I assume that investments reflect ability of individual. 3.32 .865 - 0.365 M(3.44)>U(3.11) 0.021
Retirement Planning
Retirement could lead to poor mental health. 1.94 .950 - 0.603 - 0.451
Retirement would make me a useless person. 2.12 .810 M(2.04)<F(2.19) 0.023 M(2.02)<U(2.29) 0.003
Retirement would make me lonely. 1.88 .956 - 0.925 M(1.78)<U(2.04) 0.003
It would be difficult to cope with changed lifestyle after 0.228 - 0.058
3.28 .910 -
retirement.
Retirement would open new opportunity doors. 2.97 1.080 M(3.14)>F(2.76) 0.001 M(3.12)>U(2.61) 0.001
Estate Planning
I am well aware of earnings that the the proceedings of my 0.020 M(3.19)>U(2.77) 0.047
3.03 .972 M(3.21)>F(2.86)
estate will provide to my family.
I am well aware of taxes levied on the proceeding of my estate. 2.82 1.147 M(2.93)>F (2.70) 0.011 M(3.07)>U(2.38) 0.001
My estate plan will yield for inflation. 3.00 1.004 M(3.17)>F(2.83) 0.030 M(3.26)>U(2.56) 0.007
M, F in Mean (Gender) refers to male and female. M, U in Mean (Marital status) refers to married and unmarried p denotes
significance (95% confidence) for Gender p1 denotes significance (95% confidence) for Marital status std. devi. is standard
deviation.

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Table 4: Factors influencing various aspects of Personal Financial Planning

Mean Std. Mean (Gender) p Mean (Marital status) p1
Variable Deviation

Money Management
To record day to day transactions. 2.51 .581 - 0.126 M(2.63)>U(2.31) 0.021
To maintain an emergency fund. 2.75 .435 M(2.79)>F(2.71) 0.024 M(2.86)>U(2.55) 0.001
To maintain a non permanent store of value. 2.61 .564 M(2.70)>F(2.52) 0.010 M(2.79)>U(2.32) 0.001
Insurance Planning
Coverage variety provided by policy. 2.84 .414 M(2.89)>F(2.78) 0.002 M(2.92)>U(2.70) 0.003
Employer provided fringe benefits. 2.54 .565 M(2.60)>F(2.47) 0.004 M(2.65)>U(2.35) 0.004
Quality of the services provided by an agent. 2.68 .524 - 0.510 M(2.78)>U(2.52) 0.001
Investment Planning
Anticipated returns of the investments. 2.69 .530 M(2.77)>F(2.61) 0.001 M(2.90)>U(2.33) 0.027
Growth in the investments 2.72 .505 M(2.78)>F(2.66) 0.004 M(2.92)>U(2.38) 0.003
Investment with liquidity option. 2.66 .591 M(2.73)>F(2.59) 0.005 M(2.91)>U(2.24) 0.001
Retirement Planning
Your health problem. 2.55 .601 M(2.62)>F(2.48) 0.016 M(2.72)>U(2.26) 0.001
Extensive managerial responsibility. 2.60 .517 M(2.66)>F(2.54) 0.030 M(2.73)>U(2.37) 0.003
Burdens apart from work. 2.54 .594 M(2.60)>F(2.47) 0.001 M(2.56)>U(2.50) 0.003
Estate Planning
To safeguard and proper management of estate. 2.60 .558 - 0.996 M(2.77)>U(2.30) 0.001
To reduce difficulty of family in event of my demise. 2.86 .398 - 0.792 M(2.95)>U(2.70) 0.001
To appoint a third party agent to supervise my 0.01 M(2.80)>U(2.47) 0.002
2.67 .469 M(2.71)>F(2.64)
affairs in event of my demise.
M, F in Mean (Gender) refers to male and female. M, U in Mean (Marital status) refers to married and unmarried p denotes
significance (95% confidence) for Gender p1 denotes significance (95% confidence) for Marital status std. deviation is a
standard deviation.
the opinion that investing is becoming more important be more positive.
nowadays. They also agree that investments show one’s
ability. Male respondents were more positive on investment is
a financial success for achieving long term goals. Married
people responded positively in contrast with unmarried people.
The findings are consistent with Walczak et al. (2018) [15].
Most unmarried people were under 20 years and were
unemployed, so lack of income could be the reason for
unmarried people responding negatively.Responding to
retirement planning the whole population has shown a
negative attitude toward being alone, useless or retirement
causing a mental problem. Results had shown that people are
not worried about being alone or useless rather they look
forward to retirement to explore new opportunities. Females
are less anxious for difficult adjustment of lifestyle after
retirement than males. Estate planning results indicate the
very positive attitude of male, female and married people.
Male respondents had more understanding of the proceedings
of their estate after death than females. Male respondents, as
well as married people, had shown a higher degree of
knowledge of taxes and inflation over their equivalents.Table 4
represents Factors influencing various aspects of PFP. These
results were evaluated on a scale of 1(not an influence) to
3(great influence). People of both genders undertook a daily
transaction with the same zeal, while married people
responded more positively. Male respondents were more
influenced to have a cash reserve and a temporary store of
value. Married people responded very positively to coverage
offered by their insurance policy. The service quality provided
by agents influenced males and females impartially.Factors
that influence investment planning were growth, liquidity and
expected returns of investments. Results indicated that males
had been more influenced by these factors. Health problems
of individuals, excessive managerial duties, pressures outside
the work situation were factors that influenced retirement
planning. Although both groups had been positively influenced
by these factors, male and married respondents were found to
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Table 5: Frequency of managing for various aspects of Personal Financial Planning

Mean Std. Devi. Mean (Gender) p Mean (Marital status) p1
Variable
Money Management
How frequently do you discuss money management? 3.12 .913 - 0.996 M(3.27)>U(2.81) 0.003
How actively do you strategize for money 0.792 M(3.15)>U(2.92) 0.005
3.07 .982 -
management?
How frequently do you study about money 0.003 M(3.03)>U(2.69) 0.030
2.90 .888 M(3.05)>F(2.76)
management?
Insurance Planning
How frequently do you discuss insurance planning? 3.07 1.121 M(3.26)>F(2.88) 0.01 M(3.27)>U(2.74) 0.004
How actively do you strategize for insurance 0.606 - 0.304
2.98 .889 -
planning?
How frequently do you study about insurance 0.031 M(3.01)>U(2.80) 0.029
2.93 1.115 M(3.14)>F(2.72)
planning?
Investment Planning
How frequently do you discuss investment planning? 3.02 .818 - 0.054 M(3.10)>U(2.90) 0.049
How actively do you strategize for investment 0.008 M(3.21)>U(2.61) 0.002
2.99 1.099 M(3.19)>F(2.78)
planning?
How frequently do you study about investment 0.001 M(2.98)>U(2.37) 0.001
2.76 1.204 M(2.91)>F(2.60)
planning?
Retirement Planning
How frequently do you discuss planning retirement 0.001 M(3.16)>U(2.53) 0.046
2.93 1.040 M(3.11)>F(2.74)
planning?
How actively do you strategize for retirement 0.041 M(3.16)>U(2.92) 0.008
3.07 1.121 M(3.23)>F(2.91)
planning?
How frequently do you study about retirement 0.037 M(3.08)>U(2.35) 0.001
2.81 1.201 M(2.98)>F(2.64)
planning?
Estate Planning
How frequently do you discuss estate planning? 2.77 1.146 M(2.90)>F(2.65) 0.007 - 0.398
How actively do you strategize for estate planning? 2.97 .998 M(3.11)>F(2.83) 0.001 M(3.15)>U(2.66) 0.016
How frequently do you study about estate planning? 2.92 1.043 M(3.11)>F(2.74) 0.004 - 0.060
M, F in Mean (Gender) refers to male and female. M, U in Mean (Marital status) refers to married and unmarried p denotes
significance (95% confidence) for Gender p1 denotes significance (95% confidence) for Marital status std. devi. is standard
deviation.
depend upon how much they discuss, plan and read about it.
Protection of assets and minimizing the inconvenience of the Both males and females engage in discussions about money
family after death influences either of gender equality, but male management and investment planning, females and males
respondents were more positive about appointing an agent to planned for money management with equal zeal. Males were
supervise affairs in event of demise. found more likely to engage in discussions about insurance,
Table 5 represents the frequency of managing for various retirement and estate planning.
aspects of PFP. These results were evaluated on a scale of

0(never) to 4(often). Attitudes of individuals towards PFP

Table 6: Comparison of Job Status on Attitudes towards Personal Financial Planning
Mean p Tukey’s
Variable
E S U

Money Management
I am careful while spending money. 3.07 2.37 1.70 0.005 E>S,U
I carefully budget my money. 3.08 2.37 1.83 0.001 E>S,U
Money symbolizes success. 3.20 2.60 2.12 0.002 E>S,U
Money reflects individual’s achievements. 3.60 3.06 2.59 0.501 -
Insurance Planning
I see insurance as my pivotal investment. 3.21 2.70 2.21 0.001 E>S,U
I see insurance as my retirement fund. 3.19 2.54 2.06 0.006 E>S,U
I see insurance as forces saving to ensure income to family in event of my demise. 3.28 2.75 2.21 0.842 -
I have an adequate insurance plan. 3.26 2.71 2.24 0.001 E>S,U
I see insurance as replacement income if I ever become disabled. 3.09 2.49 1.78 0.007 E>S,U
I am uncertain about purchasing a suitable insurance plan. 2.25 2.59 2.90 0.005 U>S,E
Investment Planning
It is essential to invest nowadays. 3.54 2.99 2.56 0.013 E>S,U
Investing is crucial to accomplish long-term goals. 3.21 2.58 2.22 0.003 E>S,U
Investment is a path to long-term financial triumph. 3.27 2.63 2.68 0.049 E>S,U
I am highly satisfied with my investments. 3.11 2.45 1.89 0.041 E>S,U
I assume that investments reflect ability of individual. 3.57 3.02 3.63 0.316 -
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Retirement Planning
Retirement could lead to poor mental health. 1.69 2.37 2.53 0.014 U>S,E
Retirement would make me a useless person. 1.93 2.33 2.63 0.003 U>S,E
Retirement would make me lonely. 1.60 2.29 2.57 0.032 U>S,E
It would be difficult to cope with changed lifestyle after retirement. 3.54 2.99 2.56 0.663 -
Retirement would open new opportunity doors. 3.21 2.58 2.22 0.026 E>S,U
Estate Planning
I am well aware of earnings that proceedings of my estate will provide to my family. 3.29 2.69 2.39 0.001 E>S,U
I am well aware of taxes levied on the proceeding of my estate. 3.12 2.61 1.90 0.130 -
My estate plan will yield for inflation. 3.28 2.75 2.21 0.020 E>S,U
E, S, U refers to employed, self-employed and unemployed respectively. p denotes significance (95% confidence).

Married people enthusiastically discuss, plan and read about management. Seven questions were of 0-4 scale and three
various aspects of PFP, on the other hand, unmarried people were of 1-3 scale. The average mean was found 2.86 out of
are very less likely to discuss any of these factors which are a 3.70, which is satisfactory. Twelve questions were asked for
worrying signal. Married people actively planned for money insurance planning, nine questions were of 0-4 scale and
management, investment, insurance, retirement, and estate three questions were of 1-3 scale. Mean for insurance
planning and are the most consistent group for all five planning was 2.81 out of 3.75 and shows that people of
aspects.Table 6 reports the impact of the job status of Punjab have a positive attitude towards insurance
individuals on attitudes towards PFP. The findings indicate that planning.Eleven questions for investment and retirement
job status was the primary factor in personal financial planning were asked. Eight questions were of 0-4 scale and
planning. Employed individuals were found to be far more three questions were of 1-3 scale for both aspects. The
positive in their money management then self-employed obtained results for both aspects were out of 3.72. Investment
individuals with the exception of unemployed individuals who planning mean was 2.94 which is best for any aspect, showing
responded negatively. Unemployed individuals were found to that people of Punjab are most conscious about their
be careless while managing and budgeting money. All three investments.Retirement planning is the most neglected aspect
groups consider money as one’s achievement. Employed as the mean of retirement planning is 2.60 which is the lowest
individuals saw insurance as their major investment, they among the five aspects. For estate planning, a total of nine
seem to be very confident while choosing an insurance plan. questions were asked. Six questions were of 0-4 scale and
Unemployed individuals were least capable to plan insurance three were of 1-3 scale. The results show that people of
and found it very difficult to choose an appropriate insurance Punjab have a positive attitude toward their estate planning as
plan. Self-employed individuals responded positively to the mean for concerned aspect was found 2.84 out of 3.
insurance planning.Investment planning results were very
interesting as all individuals thought that investment shows 7 CONCLUSION
one’s ability, but employed individuals had shown the most The overall results reveal that people of Punjab have positive
positive attitudes followed by self-employed. Unemployed attitudes towards personal financial planning. Females,
individuals lack of knowledge in investment planning is unemployed and unmarried have poor personal financial
disquiet. Thought of retirement puts everyone at unease, planning skills compared with their counterparts and require
mostly unemployed individuals. Self-employed individuals awareness about their financial decisions. Perhaps a financial
were less worried about life after retirement. Employed planning professional could help them to draft a sophisticated
individuals were both afraid of retirement to be a difficult financial plan. Male individuals appeared to be more positive
lifestyle change but also excited for new opportunities. in their money management, insurance, retirement, and estate
Employed individuals were most likely to handle their estate planning then female individuals. While making investment
planning with ease and sophistically. Unemployed individuals decisions males had shown more confidence and positivity.
responded negatively to estate planning, especially lack of Married individuals produced far better results in personal
knowledge of taxes applied to the estate. These findings are financial planning then unmarried individuals. The reason
consistent with Shobha et. al (2015). behind married individuals actively planning their finances may
be that they need to provide protection and constant flow of
Table 7: Overall perception of people of Punjab. income to their families even in the event of their
Variable Mean Std. Deviation N death.Results had shown that job status serves as a crucial
Money Management 2.86 0.873 10 factor for attitudes towards personal financial planning.
Insurance Planning 2.81 0.909 12 Employed individuals carefully planned their finances, invested
Investment Planning 2.94 0.891 11 confidently and managed insurance, retirement and estate
Retirement Planning 2.60 0.889 11 planning effortlessly. Self-employed individuals shown
Estate Planning 2.84 0.859 9 positivity throughout but still need to improve their planning.
Mean for each aspect is the average of means of all questions Unemployed individuals lack financial planning skills and
for the particular aspect. Std. Deviation for each aspect is the desperately needs some awareness.
average of the standard deviation of all questions for the
particular aspect. n is the number of question for concerned 8 FUTURE SCOPE
aspect.Table 7 represents the overall perception of people of
The study is limited to 600 individuals of state of Punjab; the
Punjab towards various aspects of PFP. Overall people of
further study can be extended towards other states and to the
Punjab have positive attitudes towards all aspects of PFP. A
whole of India. Each aspect can be explored in detail.
total of ten questions were asked related to money
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Furthermore, a survey differentiating perception of public and [18] Stanley, Y. P. L., & Patrick, K. P. K. Factors that Influence
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