Survey Report on Financial
Knowledge and Planning
Author: Aaditya Kumar
Aditya Bhandari
Devansh Ahuja
Kush Prajapati
Date of Submission: 23rd November, 2024
Executive Summary
This report analyzes the results of a survey
conducted to evaluate the financial knowledge
and planning behaviors of individuals. The
survey focused on assessing investment
preferences, financial goals, and general attitudes
toward money management.
Key Highlights:
Demographics: The majority of respondents are in their 20s and unmarried.
Income Levels: 77.8% of respondents reported an annual income above ₹10,00,000.
Investment Preferences: Stocks, mutual funds, and real estate were the most favored
investment options.
Financial Goals: A significant portion of respondents aim to build an emergency fund
(54.5%) and buy a home (36.4%).
Return on Investment: 77.8% of respondents reported making profits from their
investments. The results demonstrate that while respondents are financially active, they
require more education and strategic planning for long-term wealth growth and investment
diversification.
Introduction
Financial literacy plays a crucial role in
determining personal and economic stability. In
a world filled with complex financial products,
making informed decisions is more important
than ever. This survey was conducted to better
understand individuals' financial habits,
investment preferences, and long-term goals.
Objectives:
To assess the financial literacy of respondents in terms of
investments and money management. To understand
respondents' preferred investment avenues and the reasons
behind these choices. To explore short-term and long-term
financial goals, identifying trends and areas where financial
guidance may be needed.
Target Audience: The survey was conducted among
individuals primarily in their 20s and 30s, with varied
professional backgrounds such as students, businesspersons, and
professionals in management roles.
Methodology
The survey was designed using Google
Forms and consisted of a series of multiple-
choice, scaled, and open-ended questions.
It was distributed to a total of 60
participants, and data was analyzed to
identify trends in financial behavior, goals,
and awareness.
Survey Design:
Question Types: Multiple-choice questions,
with a few open-ended responses.
Focus Areas: Demographics, income levels,
investment choices, and financial aspirations.
Respondents' Age Distribution
• Insight: The majority of the
respondents are in their 20s, making
up 53.8% of the sample. This suggests
that younger adults are more likely to
engage with surveys about financial
planning or knowledge.
• Only a small proportion falls into the 30s (7.7%), 40s (7.7%), 50s
(7.7%), Teenage (7.7%), and 18 years old (7.7%) categories,
indicating that financial awareness among older and younger age
groups in this sample is less prevalent.
Profession/Field of Pursuit
Insight: A large number of respondents are focused
on business or entrepreneurship, as reflected by the
diverse answers such as "Business," "Businessman,"
and "Cloth Business." This shows a strong interest
in self-employment and entrepreneurship. Students
with aspirations of pursuing higher studies (e.g.,
MBA, PhD in Economics) also make up a
significant portion. This indicates that the
respondents see education as an important factor for
achieving financial success in the future. A few
responses hint at ambitions in management and civil
services, suggesting varied career goals with a focus
on leadership and public service.
Marital Status
Insight: A significant majority of the
respondents (84.6%) are unmarried,
which may influence their financial
priorities—being unmarried could
indicate more flexibility in spending and
saving, with fewer financial dependents.
Only 15.4% are married, suggesting that
financial planning could be more focused
on individual rather than family-based
needs in this sample.
Employment Type (Salaried
vs. Business)
Insight: A substantial number of respondents are
business owners (53.8%), followed by a smaller
number who are students (23.1%) and salaried
employees (15.4%).This suggests that self-
employment and entrepreneurial ventures are
more common among respondents, which could
reflect a higher inclination toward financial
independence and wealth generation through
business ownership. A few respondents selected
"Student," indicating they may still be in the
process of learning about financial management
and planning.
Yearly Income Distribution
Insight: The majority of respondents
(63.6%) earn between ₹1,00,000 -
₹3,00,000 per year, which suggests that a
significant portion of the sample is in
entry-level or early career stages, where
incomes are generally lower. A smaller
percentage of respondents earn between
₹6,00,000 - ₹9,00,000 (27.3%), and very
few earn above ₹10,00,000 or in the
₹3,00,000 - ₹6,00,000 range. This could
indicate that respondents in higher
income brackets are less common, and
most are still working on growing their
wealth.
Dependents
Insight: The number of dependents shows a more evenly spread pattern, with many
respondents supporting 1-2 people (25% each for 1 and 2 dependents).2 dependents and 5
dependents are the most common, indicating that financial planning may also revolve around
family responsibilities for many respondents. The presence of dependents is important because
it impacts financial decisions, such as saving for education, healthcare, and general living
expenses.
Investment in Stock Market
Insight: A majority of respondents (53.8%) believe that investing in the stock market is
worth it. This shows an optimistic view of equity markets as a means of building
wealth.23.1% are uncertain (answered Maybe), and only 7.7% have a clear negative stance
(answered No).The mention of civil servants being restricted from stock market investments
also adds a nuance to the data, as it points to a possible understanding of investment
constraints in specific professions.
Investment Preferences
Insight: A large portion of respondents prefer investing in stocks (53.8%), followed by real
estate (46.2%) and mutual funds (46.2%).The preference for stocks suggests a strong interest in
potentially high-reward investments, while real estate and mutual funds reflect a desire for
more stable and diversified investment opportunities. The preference for bonds, LIC, and SGB
bonds
is relatively low, indicating less interest in traditional investment options like fixed-income
securities and government bonds.
Primary Financial Goals (Next 5 Years)
Insight: The majority of respondents (53.8%) aim to buy a home in the next 5 years,
reflecting the importance of homeownership as a major financial milestone. Building an
emergency fund (30.8%) and increasing retirement savings (38.5%) are also key priorities.
This suggests that respondents are aware of the need for financial security and long-term
wealth accumulation. Paying off debt is less of a priority, with only 7.7% selecting this
goal, indicating that either respondents are debt-free or they prioritize saving for future
needs over debt repayment.
Loan Preferences
Insight: A mix of responses regarding
the amount of loan respondents would
be willing to take. Some have a flexible
approach ("Any amount"), while others
have a more conservative stance (e.g.,
₹5 lakhs, ₹25 lakhs).This data suggests
that respondents are open to taking
loans, especially for significant financial
goals, but there is no clear consensus on
how much debt is considered
acceptable.
Importance of Money
Insight: Security and the freedom to do things
are the two most important factors for the
respondents (69.2% each). This highlights a
desire for financial independence and
flexibility in how money is used. Education,
entertainment, luxury, and travel also hold
significant importance for many, suggesting
that respondents see money as a means of
enhancing personal growth and life
experiences. Philanthropy and revenge are
mentioned by very few, which indicates that
wealth is generally seen as a tool for personal
well-being rather than for altruistic or
retaliatory purposes.
Conclusion
The survey reveals that most respondents are in their 20s, with a
strong inclination toward entrepreneurship and higher education. The
primary financial goals for the next five years are to buy a home,
build emergency funds, and increase retirement savings. A majority
believe in the potential of the stock market, with preferences for
investing in stocks, real estate, and mutual funds. While many are
open to taking loans, the focus remains on financial security and
freedom. Overall, the data reflects a group that values financial
independence, long-term planning, and personal growth.
