A STUDY OF FINANCIAL LITEACY ON POSTGRADUATE

STUDENTS IN BALASORE

A project work submitted to Fakir Mohan University, Balasore in

partial fulfilment of the requirements for the degree of
MASTER OF COMMERCE

SUMITTED BY: SAGORIKA TOPPO

ROLL NO: 10601FM23032
REDG NO: 5598 / 2023
SESSION: 2023-2025

GUIDED BY: Mrs. Subhashree Khillar

(Assistant professor of commerce department)

PG DEPARTMENT OF COMMERCE
FAKIR MOHAN UNIVERSITY
VYASA VIHAR, BALASORE-756089
ODISHA, INDIA

pg. 1
 CERTIFICATE
This is to certify that the project entitled “A study on finance
literacy of postgraduate students in Balasore” has been submitted
by Sagorika Toppo, a student of [Link]. 2nd Year (commerce),
bearing Examination Roll No. 10601FM23032, to the Department of
commerce, Fakir Mohan University, Balasore, in partial fulfilment of
the requirements for the 4th Semester Examination, 2024–25.

The project has been prepared by the candidate under my guidance

and supervision, and to the best of my knowledge, it embodies the
student’s original work.

Signature of the Guide

Mrs. Subhashree Khillar
Assistant professor of
commerce Department

pg. 2
 DECLARATION
I, Sagorika Toppo, a student of [Link]. 2nd Year in Commerce at
Fakir Mohan University, Balasore, hereby declare that the project
entitled “A study on financial literacy of postgraduate students in
Balasore” has been prepared and completed by me.

The facts, interpretations, and information presented in this project are

true to the best of my knowledge and belief. This project is submitted
to the Department of commerce, Fakir Mohan University, Balasore, in
partial fulfilment of the requirements for the degree of Master in
commerce.

Date:

Place:

Sagorika Toppo
[Link]. 2nd Year (Commerce)
Exam Roll No. 10601FM23032

pg. 3
 ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Mrs. Subhashree
Khillar, Assistant Professor in Commerce, Fakir Mohan University,
Balasore, for her invaluable guidance, encouragement, and
supervision throughout the course of this project. Her insightful
suggestions and academic expertise were instrumental in shaping the
quality and direction of my research. I extend my heartfelt thanks to
Dr. Artta Bandhu Jena, Head of the Department of Commerce, Fakir
Mohan University, for his support and for fostering a rich academic
environment conducive to learning and research. I am also deeply
thankful to the Department of Commerce, Fakir Mohan University,
for providing me with the opportunity and academic resources to
undertake this project entitled “A study of financial literacy on
postgraduate students in Balasore.” My sincere appreciation goes to
all the esteemed faculty members of the commerce discipline,
especially Mrs. Gaytri Guha Roy, Mr. Debadutta Nayak, and Dr.
Rajaram Majhi. I am truly grateful for her mentorship and inspiration.
I am profoundly grateful to my mother for her unconditional love and
blessings, and to my sister for her unwavering support and
encouragement during the preparation of this project. A special thanks
to my friend for being a consistent source of motivation and positivity
throughout this journey. Lastly, I extend my gratitude to all the
scholars and authors whose works have contributed significantly to
the development of this study.

Sagorika Toppo
[Link]. 2nd Year (Commerce)
Fakir Mohan University, Balasore

pg. 4
 CONTENT

TABLE NO. PARTICULAR PAGE NO.

CHAPTER 1 INTRODUCTION
BACKGROUND OF STUDY
SCOPE OF STUDY
IMPORTANCE OF STUDY
CHAPTER 2 REVIEW OF LITERATURE
INTRODUCTION
LITERATURE REVIEW
RESEARCH GAP
CHAPTER 3 CONCEPTUAL FRAMEWORK
INTRODUCTION
WHY FINANCIAL LITERACY IS
IMPORTANT
FACTOR OF FINANCIAL LITERACY
ADVANTAGES OF FINANCIAL
LITERACY
CHAPTER 4 RESEARCH METHODOLOGY
INTRODUCTION
RESEARCH OBJECTIVE
RESEARCH DESIGN
SAMPLING TECHNIQUES
DATA COLLECTION METHODS

pg. 5
 TOOLS & TECHNIQUES FOR
ANALYSIS
CHAPTER 5 DATA ANALYSIS & INTERPRETATION
INTRODUCTION
DATA ANALYSIS
INTERPRETATION OF RESULTS
CHAPTER 6 FINDINGS
INTRODUCTION
KEY RESEARCH FINDINGS
CHAPTER 7 CONCLUSION & DISCUSSION
CONCLUSION
DISCUSSION
IMPLICATION OF STUDY
LIMITATION OF STUDY

REFERENCE

pg. 6
CHAPTERIZATION OF THE RESEARCH PAPER
The research paper contains 7 number of chapters each divided into
some units under them.
After introduction of the topic of research “A STYDY ON
FINANCIAL LITERACY OF POSTGRADUATE STUDENTS IN
BALASORE, ODISHA” the paper contains the chapter as follows –

Chapter 1: - Introduction
 Overview / Background of the study (1.0)- the background of
the entire research topic and its relatedness.
 Scope of the study (1.1)- the scope covers the postgraduate
students of Fakir Mohan university, Balasore.
 Importance of the study (1.2)- it emphasizes the importance of
the topic is offer insight for policy makers universities and
educators to design the financial literacy programs.

Chapter 2: Review of literature

 Introduction (2.0) – Summary of existing research on
financial literacy on students.
 Review of literature (2.1)- Literature related to students,
working women, high school students etc.
 Research Gap (2.2) - Indentified the areas of study to work
on and further where research is needed.

chapter 3: conceptual framework

 Introduction (3.0)- Summary of financial literacy and its
component such as financial knowledge, money management.
And explore the key concept.

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  History of financial literacy: It show the diagram of evolution
of financial literacy.
 why financial literacy is important: In this section show the
how to manage finance. And lack of financial knowledge it
means poor financial decision.
 Factor of financial literacy: there are various factor which is
affect the financial literacy.
 Advantages of financial literacy: There are many advantages
of financially literate.

Chapter 4: Research Methodology

 Introduction (3.0)- a brief introduction about the research
methods and methodology used.
 Research Objectives (3.1)- objectives of the study. Study
area and target population. And also develop the research
hypothesis.
 Research Design (3.2)-the research design consists of
sampling techniques (3.2.1) and size and the methods of data
collection (primary data) (3.2.2).
 Tool &techniques: A research use various techniques like T-
test, ANOVA, and statistic method like mean. standard
deviation etc.

Chapter 5: Data Analysis and Interpretation

 Introduction (4.0)-A introduction on the data collected and
the same are analyzed and interpreted.
 Data analysis (4.1)- presentation of collected data and data
are analysis in SPSS through various techniques. Then results
interpretation, discussion on the study.

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 Chapter 6 Findings
 Introduction (5.0)-discussion on key findings in the study of
objectives.
 Key research findings (5.1)- Summarizes the key words and
findings of research.

Chapter 7
 Conclusion (6.0)
 Discussions (6.1)
 Implication of the study (6.2)
 Limitation of the study (6.3)
 REFRENCE

pg. 9
 CHAPTER 1
INTRODUCTION

pg. 10
INTRODUCTION
“Do not save what is left after spending, but spend what is left after
saving”
-Warren Buffet
In today's increasingly complex financial environment, the ability to
make informed and effective decisions about personal finances is
essential. Financial literacy, which refers to an individual’s
understanding of financial principles and concepts such as budgeting,
saving, investing, taxation, and insurance, plays a crucial role in
shaping one's financial well-being and security. It enables individuals
to manage resources efficiently, plan for the future, avoid excessive
debt, and make sound financial choices throughout life.
With the rapid growth of digital banking, online investment platforms,
and consumer credit options, it has become even more important for
young adults, especially students, to possess a solid foundation in
financial literacy. However, studies conducted across various regions
of India and globally have shown that many students lack adequate
knowledge and skills in personal finance. This lack of awareness
often results in poor financial decisions, which can lead to long-term
financial instability and stress.
Postgraduate (PG) students, who are at the threshold of entering the
job market or starting their independent financial journeys, represent a
crucial demographic for financial literacy research. These students are
not only expected to manage their own finances but are also future
decision-makers in society. Understanding their level of financial
literacy is vital in assessing how well-prepared they are to face real-
world financial challenges.
Balasore, a district located in the state of Odisha, is home to several
higher education institutions including Fakir Mohan University. While
the district is developing in terms of education and infrastructure, it is

pg. 11
essential to evaluate whether students in this region are financially
literate enough to cope with the demands of modern financial
systems. Unlike metro cities where exposure to financial services is
relatively higher, students in semi-urban or rural districts like
Balasore may face limited access to financial education and practical
financial tools.

This study aims to evaluate the financial literacy of postgraduate

students in Balasore, Odisha, by focusing on key financial areas such
as savings, investment, budgeting, taxation, and insurance. The
research is based exclusively on primary data collected from 200 PG
students using structured questionnaires. The findings will provide
insights into the existing financial knowledge and practices of the
students, and will help identify specific gaps that need to be addressed
through targeted education and policy interventions.

By understanding the financial literacy levels of PG students in

Balasore, this study hopes to contribute valuable knowledge to
educators, policymakers, and financial institutions that aim to enhance
financial awareness and promote responsible financial behaviour
among young adults.

Need & importance of the study

Financial literacy has emerged as a critical life skill in today’s
increasingly complex and interconnected economy. Postgraduate (PG)
students, who are transitioning into higher education and preparing
for their careers, are often faced with important financial decisions,
including managing educational expenses, handling debt, saving, and
planning for their future. The importance of this study lies in its focus

pg. 12
on evaluating the financial knowledge and behaviour of PG students
at Fakir Mohan University, a public institution in Odisha, India.

Firstly, this research provides insight into how well-equipped students

are in terms of making informed financial decisions. As young adults,
PG students represent a group that is particularly vulnerable to poor
financial choices due to inexperience and lack of formal financial
education. Identifying the strengths and weaknesses in their financial
literacy will help in understanding their ability to budget, save,
borrow, and invest wisely.
Secondly, the study is important for academic institutions and
educators. By assessing students’ financial knowledge and behaviour,
the research can provide empirical evidence to support the inclusion
of financial education programs or workshops in the university
curriculum. Such initiatives can enhance students’ financial well-
being and help them avoid debt traps and other long-term financial
issues.
Thirdly, this research is valuable for policymakers and financial
education stakeholders. The results can inform government and non-
government organizations about the current state of financial literacy
among educated youth in semi-urban regions like Balasore, Odisha.
This can guide the development of more effective financial literacy
campaigns or policies targeted at youth and students.
Furthermore, the study can serve as a foundation for future research.
It opens the door to comparative studies across different universities,
regions, and educational levels. Researchers can build upon this work
to explore trends over time or assess the impact of interventions
aimed at improving financial literacy.

pg. 13
In conclusion, the importance of this study is multi-dimensional. It
contributes to academic knowledge, informs institutional practices,
guides policy-making, and empowers students to become financially
responsible citizens. Enhancing financial literacy among PG students
not only benefits individuals but also supports the broader goal of
building a financially aware and empowered population.

Scope of the study

The present research is designed to assess and analyse the level of
financial literacy among postgraduate (PG) students in Balasore,
Odisha, with a focus on practical financial domains relevant to young
adults. The scope outlines the specific boundaries within which the
research has been conducted to ensure clarity, focus, and relevance.

1. Target Population
The study focuses exclusively on postgraduate students enrolled in
recognized educational institutions within Balasore district. These
students are pursuing advanced degrees in disciplines such as Arts,
Science, Commerce, and Professional Courses (e.g., MBA, MCA).
The sample includes 200 students selected using a stratified random
sampling method to ensure fair representation of gender, academic
background, and age.
2. Geographical Coverage
The study is geographically limited to Balasore district in the state of
Odisha. This district has a growing academic infrastructure but is less
explored in terms of financial awareness among youth. The choice of
this region allows for an analysis of financial literacy in a semi-urban
context, where financial inclusion and access to financial education
are still evolving

pg. 14
3. Subject Scope
The study investigates financial literacy across five critical domains:
 Saving practices and awareness
 Investment knowledge and behaviour
 Budgeting skills and financial planning
 Understanding of taxation
Awareness of insurance products These components are selected
based on their relevance to the financial lives of young adults and
their inclusion in globally accepted financial literacy frameworks
(e.g., OECD).
4. Data Scope
The study relies solely on primary data, collected through a
structured, pre-tested questionnaire. The questionnaire includes both
objective questions to assess knowledge and subjective items to
understand financial behaviour and attitudes.
5. Analytical Scope
The collected data is analyzed using descriptive and inferential
statistical techniques with the help of SPSS software. Measures such
as frequency distributions, mean scores, and cross-tabulations are
used to identify patterns and differences across demographic groups.
This helps in generating meaningful interpretations and actionable
insights.
6. Time Frame
The data collection was conducted during the academic session 2024–
2025. All findings reflect the financial awareness and behaviours of
students within this period, providing current and timely insights into
their financial literacy levels.

pg. 15
7. Limitations in Scope
This study does not include undergraduate students, employed
professionals, or individuals outside the Balasore region. The
findings, therefore, are not generalizable to all student populations in
Odisha or India, but offer a foundational understanding specific to this
context.

Limitation of the study

i. The study is limited only to postgraduate students and does
not include undergraduate student or other categories of
students.
ii. The sample size of the study is limited and may not
represent the financial literacy level of all postgraduate
students at a nation or global level.
iii. The study is based on primary data collection through
questionnaires, which may have limitation like biased
responses, lack of accurate information, or incomplete
answer from the respondents.
iv. The study focus only on selected aspects of financial
literacy like saving, budgeting, investment, and financial
planning may not cover all areas of personal finance.
v. The research is confirmed to a specific geographical area
or one educational institution, which limits the
generalization of the results to a wider population.
vi. The financial knowledge and practices of students might
also be influenced by external factors like family
background, socio-economic status, and access to financial
resources which are not deeply explored un this study.

pg. 16
 CHAPTER 3
CONCEPTUAL FRAMEWORK

pg. 17
INTRODUCTION
Definition of Financial Literacy: The FCAC is an excellent source
of financial literacy information & resources. According to the
Financial Consumer Agency of Canada (FCAC), Financial literacy is
having knowledge, skills, and confidence to make responsible
financial decisions for the future. Having the necessary financial
literacy skills can help people make educated decisions and manage
their financial obligations. It can also help them prepare for their
future financial goals.
Meaning of Financial Literacy: Being financially literate means
knowing how to keep what you earn (saving) and how to earn more
with what you keep (investing). Financial literacy refers to the art of
investing and managing money and the ability to make good financial
decisions.
Financial literacy refers to “Knowledge and understanding of
financial concepts and risks, and the skills as well as motivation and
confidence to apply such knowledge and understanding in order to
make effective decision across a range of financial contexts, to
improve the financial wellbeing of individuals and society, and to
enable participation in economic life”. It is a combination of
awareness, knowledge, skill, attitude and behaviour necessary to
make sound financial decisions and ultimately achieve individual
financial wellbeing. Lack of financial capability can make it hard to
make major financial decision like opening the risk kinds of bank
accounts, planning for retirement, and paying off personal debts from
student loans or credit cards.
Every individual should have knowledge on financial management so
that they can handle finance effectively. Financial literacy is important
life skill that able individual to make informed and effective financial
decision. It involves understanding fundamental financial concepts
such as saving, investment, debt management and financial behaviour.

pg. 18
Financial literacy is particularly important as they pursuing higher
education while managing tuition fees and living expenses. The
person can be wealthy in true means if he or she is financially
educated.
Financial literacy is required and important for every aspect of life.
Which we call life’s financial goals. Which can be education, the
building of a house, lifestyle, Marriage, helping or supporting the
family, earning a bigger income, self-development, travel, and saving
for the future. It helps individuals attain financial stability make
informed decisions and manage their money. Financial literacy also
equips them with the necessary knowledge to excel in their financial
endeavours. It enables one to attain debt-free status by adopting the
finest debt strategies.
Stage of life of financial literacy
After establishing the „what‟ and „when‟ about financial literacy, it is important
to understand the „how‟ of it. When an individual grows in age, a lot of
psychological and behavioural attributes change. As for as the economy is
concerned the social, political or economic environment attributes change. The
three prime attributes that notably differ with each of the four stages of life and
should be considered well while designing any education module, but especially
a financial literacy module, our attention span, cognitive ability, and general
points of attraction.
Fundamental financial management
The goal of effective money management is to create and stick to a personal
financial plan.
There are six phases to creating an effective financial plan
i. Establish objective
ii. Create the income statement
iii. Gather historical income and expenses data
iv. prepare proper plan of spending and saving
v. keep record
vi. Assessment of the plan

pg. 19
Key components of financial literacy:

Saving

Financial product Investment

FINANCIAL
LITERACY

Understanding Budget
taxes

Debt
management

pg. 20
a) Saving and building emergency fund: Saving is crucial for
financial security and future stability, people should focus on
setting aside a portion of their income for savings, exploring
different saving accounts that offer good interest rates, building an
emergency fund to cover unexpected expenses e.g. medical bills,
urgent travel.
b) credit management: A good credit score is important for future
financial opportunities, such as renting an apartment, securing a
loan. People should learn how credit are calculated, pay off credit
card balance on time to avoid high interest charges, avoid
unnecessary loans.
c) Investment: Investing is a key aspect of financial growth and
wealth accumulation. People should learn about different
investment option like stocks, mutual fund, bonds and real estate.
Consider long term investment strategies for wealth building.
d) Budgeting and expenses management: Budgeting is one of the
most essential financial skills for individual. A well structure
budget helps to track their income, manage expenses and collect
funds efficiently. Key steps in budgeting including identifying
sources of income, listing fixed expenses, tracking variable
expenses.
e) taxes: Knowing how different taxes work helps individuals
manage their income effectively. Tax planning involves strategies
like tax deductions, tax credits, and retirement contributions to
minimize tax liability.
f) Insurance and risk management: Insurance helps protect
individuals from financial losses due to unexpected events. There
are various types to insurance like health insurance, life insurance,
fire insurance etc.

pg. 21
HISTORY OF FINANCIAL LITERACY

2006-Till date (iniciatives by different

23rd August, 1787
countries)
Jhon Adams in a letter to thomas
2008- In US president's advisory counsil on
jefferson in america for the first
finanliteracy (PACFL) was created.
time recognized the need of
financial literacy: "All the 2009-The RBI established financial literacy and
perplexities or confederation, not credit counselling centers all over the country to
from a want of honour or virtue, impact financial education.
sh as from downright ignorance of 2010- In UK financial services Act 2010
the nature of coin, credit and established consumer financial education body.
circulation. 2011-Cenral bank of sri lanka stared iniciativies
in the field of financial education.
2012-Singapore manetary authority and
singapore polytechnic to strengthen financial
education in economy launched initiative money
SENSE.
2013- The OECD and Russia's G-20 presented
reportto proceed further in developing natinal
strategei

1900-1970
1914-Smith -Lever Act, US provide learning
experience and financial skills at home, farm and
in the community
1914's- Several countries throught the globe
recognized issues:financial management, income 2001-2005
&expenditure, budget, retirement security in the
field of research. 2002-Central council for financial
services information comes up with
1970's- National youth involment board(NYIB)
formed to focus on youth financial literacy. the guidelines of the promotion of
consumer education on finance in
asia.
2003-The organization for economic
co-operation and development
(OECD) started an inter-government
project with the objective of
1990-2000 providing ways to improve financial
education and literacy through the
1995-Jumpstart coalition started
supporting personal financial development of common financial
literacy in the US. literacy principles.
1996- Dr. Lewis Mandella developed 2005- A comprehensive international
the financial literacy survey. study by OECD was published in
2000-With the expenditure financial assessing financial literacy surveys in
liberalization in the econo,y finance several countries.
minister of Japan stared working on
strategies on financial literacy.

pg. 22
Why Financial Literacy important:
Financial literacy empowers individuals to take control of their
financial matters in future. It enables people to:
 Make proper decisions about spending and saving.
 Avoid falling into debt traps.
 Maximize investment opportunities.
 Protect themselves and their families through insurance and
proper financial planning.
 Build long-term financial wealth and financial security.
A lack of financial literacy can lead to poor financial decisions, such
as overspending, accumulating debt, or missing out on investment
opportunities, which can have long-term negative consequences. By
improving financial literacy, people can make smarter choices, reduce
financial stress, and ultimately achieve their financial goals.
In short, financial literacy is not just about understanding financial
terms and concepts; it's about being able to apply that knowledge to
make smart, effective decisions that improve one's financial well-
being over time.

HOW CAN ONE PERSON IMPROVE THEIR FINANCIAL

LITERACY?

One of the most important factors that people can consider when it
comes to improving their financial literacy is to develop a personal
finance strategy. This process involves learning various skills such as
budgeting and managing debt, among others. A budget should be
created monthly to help one monitor their expenses and income. It
will allow them to allocate their money according to their needs.
 Income (pay slips, investments etc.)
 Fixed expenses (bills, rent, loan payments, etc.)
 Other expenses (shopping, travel, etc.)

pg. 23
  Savings
 Manage Bills: One must make sure that they are paying their
bills on time. They can opt for automatic debit or set up
recurring payment plans from their bank account. They should
also regularly remind themselves about their payments. Paying
bills is a must, and one should prioritize it in their budget.
 Maintain a good credit score: A high credit score can help you
get the best interest rates on loans and credit cards. It can also
help you manage your finances better and make payments on
time.
 Manage debt: You can manage your debts by reducing your
spending and increasing your payments. One of the most
effective ways to do this is by implementing a debt reduction
plan. For instance, paying off high-interest loans first.
 Start Saving & Investing: One should start investing and
saving as it is not difficult to do so following proper budgeting.
After putting their money to work, they should set goals and
allocate their resources to achieve them. This can be done
through regular savings and investing. Having a goal can help
people achieve their life goals without having to stress about it.
 Systematic Investment Plans: One of the most important steps
that individuals can take to improve their financial situation is
by establishing a systematic investment plan. This will allow
them to save a fixed amount each month. Having a long-term
horizon is also important to ensure that they can generate
significant returns. It is important that they establish a strategy
that divides their goals into different categories. Having a
financial advisor can help them plan their investments.

factor of financial literacy

1. Education and Formal Training

pg. 24
  Schooling and Curriculum: Formal education, especially if it
includes personal finance or economics courses, can improve
financial literacy. Many schools offer little to no personal
finance education, leaving individuals to learn financial
concepts on their own.
 Financial Courses and Workshops: People who attend
financial literacy workshops or take finance-related courses
often have better knowledge of managing their money.
2. Age and Experience
 Age: As individuals age and gain more financial experience,
they often develop better financial skills. For example, someone
in their 30s or 40s might have more experience managing debt,
saving for retirement, or investing than someone in their 20s.
 Experience with Financial Products: People who have used
credit cards, loans, or investments may better understand how
these financial tools work.
3. Socioeconomic Status
 Income level: Higher income levels often provide individuals
with greater access to financial education resources. People in
lower-income brackets may not have the opportunity to learn
about financial matters as deeply.

4. Family and Social Environment

 Parental Influence: Parents who are financially literate and
who discuss money management with their children can foster
better financial knowledge early on.
 Social Influence: Social circles can influence financial
decisions and attitudes. If a person is surrounded by financially

pg. 25
 knowledgeable people, they may be more likely to adopt good
financial habits.
5. Personality Traits
 Curiosity and Openness to Learning: People who are
naturally curious about money management and have a desire to
learn may actively seek out resources to improve their financial
literacy.
 Impulsiveness and Spending Habits: People with more
impulsive spending habits may not be as financially literate, as
they may not prioritize learning about budgeting, saving, or
investing.

Advantages of financial literacy

Financial literacy offers lot of benefits to people it provide knowledge
and skills needed to manage their finance effectively, leading to
financial security and stability.
i. Improved money management: Financial literacy provides
practical skills for managing money effectively. It teaches
individual how to create budgets, track expenses, and set
financial goals, fostering responsible money management habits.
ii. Enhanced financial decision making: Financial literacy
enables individuals to compare financial products such as loans,
insurance, and investment opportunities. With this knowledge,
they can negotiate better deals, minimize financial risks, and plan
for major life events like homeownership, education, or business
investments.
iii. Greater Financial Independence and Stability: When
individuals have financial knowledge, they can make

pg. 26
 independent financial decisions without relying on others. This
fosters a sense of financial freedom, allowing them to build
wealth, support their families, and achieve long-term financial
success.
iv. Protect Against Financial Fraud and Scams: Financial literacy
increases awareness of common financial scams. Individuals can
safeguard their finances by recognizing fraudulent schemes,
protecting personal financial information, and making informed
financial decisions.
v. Reduced Financial Stress: By promoting proactive financial
planning, financial literacy helps individuals avoid unnecessary
debt and financial crises. This reduces anxiety related to bills,
loans, and unexpected expenses, leading to improved mental
well-being.
vi. Effective Debt Management: Understanding different types of
loans, interest rates, and repayment strategies allows individuals
to minimize their debt burdens. They can avoid excessive
borrowing, manage credit card debt wisely, and maintain a good
credit score, which improves their financial credibility.
vii. Improve retirement planning: Understanding financial tools
like pension funds, mutual funds, or retirement planning helps
you plan early for retirement. With the knowledge, you can start
saving and investment while you’re young, giving your money
time to grow compound interest.
viii. Boosts credit score management: A good credit score is vital
for getting loans, buying a house, or even getting a job. Financial
literacy teaches how to build and maintain good credit by paying
bills on time, keeping debt low
and checking your credit report regularly.

pg. 27
pg. 28
 CHAPTER 4
RESEARCH METHODOLOGY

Introduction
According to Advance Lerner’s Dictionary of current English define
research as a through investigation or inquiry, particularly via the
pursuit of novel facts in any field of study. Any research study have its
research technique established before it is carried out. The processes
that a researcher often takes to examine his or her research challenge
and the reasoning behind it are referred to as research methodology.
The problem statement, study design, sampling plan, questionnaire
design, field work plan, and analytic plan are all important component
of the research process.

pg. 29
This chapter presents the methodological framework adopted for the
study. It details the overall research design, the techniques employed
for data collection, the sampling strategy, and the methods of data
analysis. Given that the study is based on primary data, this chapter
offers a comprehensive explanation of the survey instrument,
including the structure and components of the questionnaire used. The
sampling procedure applied to select a representative group of 200
postgraduate students from Fakir Mohan University, Balasore,
Odisha, is also described. Furthermore, the chapter highlights the
ethical protocols followed throughout the research process and
outlines the limitations and scope associated with the study.
This chapter presents a detail and systematic process that the
researcher adopted to achieve the objectives of the study. The main
discussions in this chapter include: the research design, research
strategy, population of the study, the sample size and sampling
technique, data sources and collection method, validity and reliability
of data, data analysis, model specification and ethical considerations.

Research Gap
1. After literature review it appear that there is no research on
postgraduate students of Balasore on financial literacy.
2. There is less research on students of Balasore, Odisha. But there
is some research on women, self-employed people.

Objective of research
 To study the financial literacy level of postgraduate students in
Balasore.

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  To examine student knowledge in general financial matters,
savings and borrowing, investment and insurance.

Development of research hypothesis

Objective 1
H0- There is no significant difference in the level of financial literacy
among postgraduate students
H1- There is significant difference in the level of financial literacy
among postgraduate students
Objective 2
H0- Postgraduate students do not possess adequate knowledge in
general financial matters including saving, investment, borrowing,
and insurance.
H1-Postgraduate students possess adequate knowledge in general
financial matters including saving, investment, borrowing, and
insurance.

Research design
A research design is the overall strategy a researcher uses to address a
research question or problem. It's the blueprint for how a study will be
conducted, including the methods for collecting and analyzing
data. Essentially, it's a detailed plan that guides the entire research
process, from conception to analysis. A research design refers to the
arrangement of conditions for collection and analysis of data in a
manner that aims to combine appropriateness to the research purpose.
For this study Descriptive research design has been used. A
descriptive research study can be defined as a study in which
the characteristics of an individual or of a group or situation are

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defined. The research design has been descriptive in nature as it
describes the financial literacy level and awareness of financial
literacy among postgraduate students.

Research Approach
This study employs a quantitative research approach, which
emphasizes the collection and analysis of numerical data. This method
is ideal for identifying patterns, examining relationships among
variables, and testing research hypotheses. By utilizing structured
questionnaires, the study ensures consistency and objectivity in data
gathering. The use of SPSS software facilitates accurate statistical
analysis, allowing for meaningful interpretation of trends across a
sizable student sample.

Sample design
A sample design refers to the “procedure or technique which a
researcher adopts in selecting items from the sample”. It works as a
definite plan for securing a sample from a given population. Before
the data collection sample design has to be determined. A sampling
design usually illustrates the “number of items to be included in the
sample”.
The sample design in this study refers to the structured plan used to
select a group of postgraduate students from Fakir Mohan
University for the purpose of data collection and analysis. It
involves choosing the sampling technique, determining the sample
size, and setting the criteria for participant selection. This research
adopts a non-probability sampling approach, with convenience
sampling as the specific method. In this technique, participants
were chosen based on their easy accessibility and willingness to
participate. While this method may not guarantee equal

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 representation of the entire population, it is effective for studies
with limited time and resources and helps collect relevant data
quickly and efficiently.
A total of 200 postgraduate students were included in the sample,
drawn from various departments across the university. This ensured
a mix of individuals with different academic disciplines, financial
habits, and demographic backgrounds. The selected sample was
considered sufficient to fulfill the study’s objective of evaluating
and comparing financial literacy levels among students.

Population of the Study

The population for this research includes all postgraduate students
enrolled at Fakir Mohan University, Balasore. These students are
drawn from various academic disciplines, including commerce,
science, arts, social sciences, and management. As young adults
preparing to enter professional and financial independence, they
form a relevant group for evaluating financial literacy levels and
behaviours.
Sampling Technique
A convenience sampling technique was applied for selecting
participants in this study. This non-random method involves
choosing respondents who are readily available and willing to
participate. Although this may limit the ability to generalize
findings to the broader student population, it offers a practical
solution within the time and resource constraints of the research.
Participants were approached both in person on campus and
through digital communication platforms

Sample Size

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 The study includes responses from a total of 200 postgraduate
students. This sample size is sufficient for performing descriptive
and inferential statistical analysis and enables comparisons across
subgroups such as gender, field of study, or employment status.
The selected participants represent a diverse cross-section of the
university's student population, which strengthens the credibility of
the study’s findings.

Data collection
Data collection is a vital phase in any research project, as it forms the
basis for all subsequent analysis and interpretation. For this study,
information was gathered from postgraduate students of Fakir Mohan
University to evaluate their level of financial literacy and their
understanding of financial domains such as saving, borrowing,
investing, and insurance. A systematic process was followed to ensure
the accuracy, dependability, and ethical integrity of the data gathered.

Nature of Data
The study made use of primary data, which involves firsthand
information collected directly from the respondents. Primary data was
chosen because it provides direct insights into the financial
knowledge, behaviours, and attitudes of the student population, which
cannot be adequately obtained through secondary sources.
For this research purpose data is collected from primary source using
questionnaire survey method. Questionnaire method is the most
effective strategy since the researcher gathers a large amount of data
from students about knowledge in finance, their financial decisions,
opinions, practice and demographic data. The survey strategy is
employed using questionnaire to gather the necessary data for the
research to achieve the objectives of the study. The study has been

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done with the help of Primary Data. Primary Data are considered as
the original data because they are collected for the first time based on
the objective of research carried on. Primary data called the first hand
data because no such statistical tool used on them before. The Primary
data collection for college going students in Balasore has been done
with the help of a structured questionnaire.

Instrument for Data Collection

A well-structured questionnaire served as the main tool for data
gathering. It was specifically designed to align with the objectives of
the research and included the following five sections:
Section 1: Demographic Details (including age, gender, academic
discipline, employment status, and financial support)
Section 2: Financial Knowledge (such as self-evaluated knowledge
and familiarity with key financial terms and ideas)
Section 3: Financial Practices (covering budgeting habits, saving
frequency, investment experiences, and emergency fund availability)
Section 4: Financial Attitudes and Challenges (confidence in
decision-making, financial obstacles, and sources of financial
education)
Section 5: Suggestions and Opinions (students' views on
incorporating financial literacy into postgraduate curricula)
The questionnaire comprised multiple-choice questions, Likert-scale
items, and closed-ended questions to ensure ease of response and
facilitate quantitative analysis using SPSS.

Data Collection Procedure

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The data collection was conducted over a month period. The
following steps were taken to gather responses:
a) Prepare questionnaire
Prepare the questionnaire with the help of online google form.
Questionnaire contain the demographical information then
questions are related with the objective of the study.
b) Questionnaire Distribution
Online: A Google Form version was shared through email,
messaging apps (e.g., WhatsApp), and academic discussion
forums.
c) Follow-Up Efforts
To ensure a higher response rate, reminders were sent to
participants through online platforms and students were given
sufficient time to complete and return the survey forms.
d) Data Entry and Organization
Online responses from Google Forms were exported in SPSS
and checked for completeness before being analyzed.
TOOLS AND TECHNIQUES FOR DATA ANALYSIS
The collected data was entered into SPSS (Statistical Package for
the Social Sciences) software version [insert version]. The
following statistical tools were used:
i. Descriptive Statistics (frequency, mean, median, mode,
standard deviation)
ii. Cross-tabulations to explore relationships between
demographic and financial literacy variables
iii. Reliability analysis using Cronbach’s Alpha
iv. Composite financial literacy index score (created by
summing responses to key items)
v. Hypothesis testing using Independent Samples T-Test, One-
Way ANOVA, and Chi-Square tests where applicable These
analyses allowed the researcher to draw meaningful

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 conclusions and identify significant patterns among student
responses.

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