Indian Streams Research Journal

Transcription

1 Vol 6 Issue 1 Feb 2016 ISSN No : ORIGINAL ARTICLE International Multidisciplinary Research Journal Indian Streams Research Journal Executive Editor Ashok Yakkaldevi Editor-in-Chief H.N.Jagtap

2 Welcome to ISRJ RNI MAHMUL/2011/38595 ISSN No Indian Streams Research Journal is a multidisciplinary research journal, published monthly in English, Hindi & Marathi Language. All research papers submitted to the journal will be double - blind peer reviewed referred by members of the editorial board.readers will include investigator in universities, research institutes government and industry with research interest in the general subjects. Regional Editor Manichander Thammishetty Ph.d Research Scholar, Faculty of Education IASE, Osmania University, Hyderabad. Mr. Dikonda Govardhan Krushanahari Professor and Researcher, Rayat shikshan sanstha s, Rajarshi Chhatrapati Shahu College, Kolhapur. Kamani Perera Regional Center For Strategic Studies, Sri Lanka International Advisory Board Mohammad Hailat Dept. of Mathematical Sciences, University of South Carolina Aiken Hasan Baktir English Language and Literature Department, Kayseri Janaki Sinnasamy Librarian, University of Malaya Romona Mihaila Spiru Haret University, Romania Delia Serbescu Spiru Haret University, Bucharest, Romania Anurag Misra DBS College, Kanpur Titus PopPhD, Partium Christian University, Oradea,Romania Abdullah Sabbagh Engineering Studies, Sydney Ecaterina Patrascu Spiru Haret University, Bucharest Loredana Bosca Spiru Haret University, Romania Fabricio Moraes de Almeida Federal University of Rondonia, Brazil George - Calin SERITAN Faculty of Philosophy and Socio-Political Sciences Al. I. Cuza University, Iasi Ghayoor Abbas Chotana Dept of Chemistry, Lahore University of Management Sciences[PK] Anna Maria Constantinovici AL. I. Cuza University, Romania Ilie Pintea, Spiru Haret University, Romania Xiaohua Yang PhD, USA...More Editorial Board Pratap Vyamktrao Naikwade Iresh Swami ASP College Devrukh,Ratnagiri,MS India Ex - VC. Solapur University, Solapur R. R. Patil Head Geology Department Solapur University,Solapur Rama Bhosale Prin. and Jt. Director Higher Education, Panvel Salve R. N. Department of Sociology, Shivaji University,Kolhapur N.S. Dhaygude Ex. Prin. Dayanand College, Solapur Narendra Kadu Jt. Director Higher Education, Pune K. M. Bhandarkar Praful Patel College of Education, Gondia Sonal Singh Vikram University, Ujjain Rajendra Shendge Director, B.C.U.D. Solapur University, Solapur R. R. Yalikar Director Managment Institute, Solapur Umesh Rajderkar Head Humanities & Social Science YCMOU,Nashik S. R. Pandya Head Education Dept. Mumbai University, Mumbai Govind P. Shinde Bharati Vidyapeeth School of Distance Education Center, Navi Mumbai Chakane Sanjay Dnyaneshwar Arts, Science & Commerce College, Indapur, Pune Awadhesh Kumar Shirotriya Secretary,Play India Play,Meerut(U.P.) G. P. Patankar Alka Darshan Shrivastava S. D. M. Degree College, Honavar, Karnataka Shaskiya Snatkottar Mahavidyalaya, Dhar Maj. S. Bakhtiar Choudhary Director,Hyderabad AP India. S.Parvathi Devi Ph.D.-University of Allahabad Sonal Singh, Vikram University, Ujjain Rahul Shriram Sudke Devi Ahilya Vishwavidyalaya, Indore S.KANNAN Annamalai University,TN Satish Kumar Kalhotra Maulana Azad National Urdu University Address:-Ashok Yakkaldevi 258/34, Raviwar Peth, Solapur Maharashtra, India Cell : , Ph No: [email protected] Website:

3 Indian Streams Research Journal International Recognized Multidisciplinary Research Journal ISSN: Impact Factor : (UIF) Volume - 6 Issue - 1 Feb REVIEW OF RESEARCH ARTICLES ON INFLUENCE OF BANK SAVING ACCOUNT ON FINANCIAL LITERACY OF STUDENTS Dhanshree Dinkarrao Mohite M.Phil Student,Department of Commerce and management, Shivaji University,Kolhapur AND Assistant Professor,Swaraj Institute Of Management, Vanvasmachi,Karad. Dhanshree Dinkarrao Mohite ABSTRACT Researcher analyzed, research articles, research papers and research reports of financial literacy of Students and influence of Bank Saving Accounts on financial literacy of students. The review found twenty six articles that studied influence of Bank Saving Accounts on financial literacy of Minor Students. Most of researchers conclude to have significant relationship between having bank saving account and financial literacy of minor students. KEYWORDS : Bank Saving, Account On Financial Literacy, Review Of Research INTRODUCTION In the rapidly changing financial system and for economic well-being of child, now a days it is necessary that he/she possess a basic level of financial knowledge and decision making ability. Several researchers have tried to find the connection between minor s saving account in Banks and financial literacy. Most of the studies were conducted at international scenarios. An attempt made to present the review on influence of Bank Saving Accounts on financial literacy of Minor Students. (Meeks,1998) suggests that youth are given thought over their ownmoney to spend and save it as they see fit. This thought may result in an increased sense of perceived control, which is one of the most important factor which is responsible for academic success.from the findings and results, researcher suggested that academic success of youth is related to saving and spending habits of youth. Yilmazer T (2001) in his article concluded that the number of children had a positive and statistically significant impact on home ownership and negative and statistically significant impact on 1

4 the proportion of investments in shares. Hilgert, Hogarth and Beverly (2003) find a positive correlation between financial knowledge and behaviour and find that individuals with high levels of financial knowledge were more likely to report learning from personal experience. They also find that knowledge gained from personal experiences is highly related with improved financial behaviours and suggest that,there is a difference between providing information and providing education. Mandell (2006) finds that students who play the stock market game tend to have significantly higher financial test scores than those who don t; this positive association has been found in every round of the JumpStart survey since 2000, when the stock market game was first included in the survey instrument (Mandell, 2007) Within the financial education literature, this finding may help explain the consistent correlation between playing the stock market game and higher levels of financial knowledge among high school students, becausethe game provides an opportunity for students to experience of gathering information and making financial decisions. (Lyons, Palmer, Jayaratne and Scherpf 2006)find out the number of financial education programs have been introduced over the past decade, but efforts to measure the effectiveness of these programs have not kept pace. Program evaluation remains a challenge for a number of reasons, such as the time and cost required to track changes in knowledge and behaviour over time, and we still don t have a instrument to major what works. Peng, Bartholomae, Fox and Cravener (2007)the authors attribute this association to Kolb s (1984) experiential learning model to find out the relationship between college student as an account holders and financial knowledge.the result of this study indicates thatcollege students that had bank accounts before age 18 had significantly higher levels of investment knowledge. According to a 2007Forrester study, in USA 65% of online consumers between the ages of 12and 21 own a checking account, 42% own a credit card, and more than 35% report saving for a car or postsecondary education. Mandell and Klein (2007) find similar results in regards to student race, parental education, and student plans for future education. They also find that motivation (or caring about one s own personal finances) is an important driver of financial literacy and suggest that students need to better understand, why financial knowledge is important and how it informs their present actions and future happiness. According to Skinner, Simmer-Gembeck, Connell, Eccles, and Wellborn (2008), the perception that one has the ability, resources, or opportunities to achieve positive outcomes or avoid negative effects through one s own actions. Gupta L.C. & Jain (2008)in their article conducted by society for capital market research and development, new Delhi. Pointed out that too much volatility, too much price manipulation, unfair practices and corporate mismanagement and frauds as the main worries of investors.this conveys financial literacy is having much importance in society (Elliott, 2008; Sherraden, Johnson, Elliott, Porterfield, &Rainford, 2007).Having savings over a period of years may raise a young person s educational expectations Higher expectations may lead to increased academic efforts and achievement. (Jez, 2008; Nam & Huang, 2009) study results indicate that Liquid forms of wealth have been more predictive of youth college attendance than illiquid forms of wealth, particularly when researchers control for youth cognitive ability. (Lopez-Fernandini and Murrell 2008) recommend that need to further increase understanding of the specific program elements that make youth financial education most effective, a few key factors 2

5 have been identified as important. Experts suggested the following promising practices. First, financial education must be relevant, meaning the content should appeal to the students? interests and present needs. Participants placed emphasis on ensuring that the content has real-world application for a diverse youth population. For example, most teenagers will not be considering a home purchase for manyyears, and may have little interest in the subject. A second key factor, closely related to relevance, is timing, suggested providing financial education to youth as early as possible and stressed the importance of just in time education, or lessons that focus on topics that are of immediate importance to students. For example students could learn about annual percentage rates and building their credit scores around the time they acquire their first credit card, thus the lessons would occur just in time. Given these lessons, importance of connecting financial education to financial activity, such as child savings accounts Peng (2008) finds that student race, educational aspiration, and parental educational attainment are significant predictors of financial knowledge in every round of the JumpStart survey from 1997 through 2006.The results showed that education variable emerged as the most important predictors in the case of financial knowledge in students. (JumpStart Coalition 2009). There is ample evidence proved that many young people are entering adulthood with high debt burdens and low levels of financial knowledge, so it is imp forpolicymakers to understand how to most effectively deliver financial knowledge, particularly in a way that influences behaviour. A 2008 national survey by the JumpStart Coalition found that the financial literacy of high school students has fallen to its lowest level ever, with a score of just 48.3 present. It appears that neither parents nor schools are adequately preparing students to manage their finances. A 2011 survey conducted by American Express found that a majority of parents with children in high school or college gave schools below-average or failing grades in teaching responsible spending. Young people are vulnerable to misinformation and often make costly mistakes at important financial decision points R. Kasilingam and G. Jayabal, ( 2009) concluded that if the savings of the individuals are not channelized in a proper manner, then it may find its way into unproductive channels such as investment in gold or it may lead to unscrupulous rise in the consumption pattern, both of which are not good for the economy. KrishnamoorthiC(2009)in his research paper concluded that irrespective of the developments in the capital market/economic conditions, investors like to invest regularly and this investment behaviour is highly related to educational background. Their occupation,reading habit of investment news and the time taken for investment decision making process. Lopez-Fernandini and Murrell 2008 )findings of the study demonstrate that curriculum should be age-appropriate and developed with real-world applicability, and that students learn most effectively when they have foundational learning integrated with experiential learning. The Journal of Children and Poverty, CSD Center for Social Development (CSD), researchers found that among youth who expected to graduate from a four-year college, those with a savings account in their name were approximately six times more likely to attend college than those with no account. Charlotte B. Beyer (2010) In his article, argues that the traditional approach to investor education has failed and that major change is needed. After observing how one group of investors learned far more in experiential settings, the author submits that these investors might be convincing proof that experiential investor education is superior. Findings of this study suggest that experiential education plays imp role in financial education. 3

6 (Elliott, W. and Beverly, S. (2011) study results indicate,youth savings would have a stronger association with college attendance than net worth or parent savings youth perceive that they have greater latitude over savings in their own name, which leads to greater perceived control. youth account ownership and savings are significantly and strongly related to attendance. These findings may suggest that the accounts owned by the youth rather than the parent will be more effective, in the case of youth who expect to graduate from a four-year college. Dr. Lokanath Mishra (2012) Findings of the Survey is For Kids Imparting real life financial skills to school students are critical to their holistic development. Establishing sound financial habits at a young age will prepare them for financial success in future. If children are not equipped with the right skills, they will have a miserable time, learning financial lessons the hard way and making some horrendous mistakes. For School Children It is worthwhile to provide relevant financial education to school students free of cost through school, print media and electronic media, conduct a certification test at national level and provide appropriate incentives for clearing the test. For College / University Students Personal finance should be compulsorily taught to college / university students. Those who are majoring in finance must study personal finance before they study corporate finance. Colleges / Universities may consider running regular financial counselling clinics with the help of reputed financial advisors to advise students on financial matters, especially on borrowings, spending on credit cards, saving and investing opportunities Michael Lierch (2012) in his article indicate that people across generations underestimate how money will grow over time and are subsequently surprised by how large futureinvestment value can be. Underestimating future account balancescan cause people to undervalue the importance of saving andinvesting.investing today might be able to amount to tomorrow.. The results suggested that if parents are not willing to invest for yourself they may invest for children s. Aside from helping your child financially, parentshaveto show the powerful potential of investing and money growth over time to their child. Kolb s (1984) experiential learning model is one of the theoretical frameworks on which the idea of learning by doing is based upon. This model proposes that personal involvement and concrete experiences with subject matter enhance effective learning outcomes. Kolb defines learning as the process whereby knowledge is created through transformation of experience. In other words, this perspective suggests that learning is less about the acquisition of knowledge, and more about the interaction between knowledge and experience. this suggests that learning by experience is an effective approach. (Hoopfer, 1981)tried to explain application of the experiential learning model for youth is the 4- H program, which is based on the educational model of learning by doing. Youth participate in a series of activities and discussions that allow them to reflect and learn from their experiences, preparing them to apply and practice the skills they have learned in other situations. The program teaches a broad range of skills generally referred to as leadership life skills which include working with others, understanding self, communicating, making decisions, and leadership Experiential learning is the cornerstone of 4-H youth programming, and intervention occurs at a young age as skills and attitudes formed during youth carry over into adulthood (Ladewig and Thomas 1987) found that a positive impact of the 4-H model on a variety of youth outcomes, including workforce skills. Coupling financial education with real world experience with financial products could improve financial knowledge, and more importantly, financial capability. (Johnson, 2007)suggestFinancial 4

7 literacy is a helpful but not a sufficient idea. Participation in economic life should maximize life chances and enable people to lead fulfilling lives. This requires knowledge and competencies, ability to act on that knowledge, and opportunity to act. This is more likely when people are able to convert knowledge into action. This, in our view, includes linking individual functioning to social institutions, and pedagogical methods that enable them to practice and gain competency in this functioning. We refer to this as financial capability Many researchers have contributed towards it. In domestic review 4 articles have been reviewed and 22 articles have been reviewed in International Scenario. Some researchers studied the awareness of finance in general. Some researchers tried to study the impact of various social and demographic factors on financial literacy in minors. Some researchers tried to study the impact of financial literacy on education. Few researchers tried to study the experiential learning through Bank at School program or financial games Thisresearch, specificallyfor analyzing the relationship between having bank account and level of financial knowledge among minor s but those who have tried to study this relationship most of them conclude that there is significant relationship between having bank account and financial literacy among minor students. REFERENCES: 1) Hoopfer, L. (1981) "Mission Statement. Unpublished paper presented at the National Committee on Utilization of 4-H Materials, Washington, D.C. 2) Kolb, D. (1984). Experiential learning: Experience as the source of learning and development. Englewood Cliffs, NJ: Prentice Hall 3) Ladewig, H. and J. Thomas (1987). Does 4-H Make a Difference? College Station: Texas A&M University System, Texas Agricultural Extension Service. 4) Yilmazer T 2001 Do Children Affect Household Portfolio Allocation? published in job market paper, evidence from the survey of consumer finances. 5) Hilgert, Marianne, Jeanne Hogarth and Sondra Beverly (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin (July): ) Mandell, Lewis (2005). Financial Literacy Does it Matter? Buffalo, NY: University of Buffalo. April 7) Lyons, A., Lance Palmer, KoralalageJayaratne, and Erik Scherpf (2006). Are We Making the Grade? A National Overview of Financial Education and Program Evaluation.The Journal of Consumer Affairs.Vol.40, No. 2. 8) Mandell, Lewis (2006). Financial Literacy: If It's so Important, Why isn't It Improving? Networks Financial Institute Policy Brief No PB-08. 9) Mandell, Lewis (2007). Financial Literacy of High School Students. Handbook of Consumer Finance Research, Edited By Jing Jian Xiao Published by Springer, ) Peng, Tzu-Chin Martina, Suzanne Bartholomae, Jonathan Fox, and Garret Cravener (2007). The Impact of Personal Finance Education Delivered in High School and College Courses. Journal of Family Economic Issues, 28: ) Peng, Tzu-Chin Martina (2008). Evaluating Mandated Personal Finance Education in High Schools. Dissertation, The Ohio State University. 12) Gupta L.C. & Jain survey 2008 The Changing Investment Preferences of Indian Households 13) Mandell, Lewis. The Financial Literacy of Young American Adults: Results of the 2008 National Jump$tart Coalition Survey of High School Seniors and College Students. 5

8 14) Krishnamoorthi C 2009 Changing Pattern of Indian Households: Savings in Financial Assets published in RVS Journal of management, 15) Lopez- Fernandini, Alejandra and Karen Murrell (2008). The Effectiveness of Youth Financial Education New American Foundation & Citi Foundation, December ) Mandell, Lewis (2009). The Impact of Financial Education in High School and College On Financial Literacy and Subsequent Financial Decision Making Presented at the American Economic Association Meetings, San Francisco, CA January 4, ) R. Kasilingam and G. Jayabal in their article Alternative Investment Option to Small Investors published in SOUTHERN ECONOMIST, Sep. 1, ) Charlotte B. Beyer 2010 Investor Education: What s Broken and How to Fix It published in The Journal of Wealth Management, 19) Elliott III, William, and Sondra Beverly. The Role of Savings and Wealth in Reducing Wilt Between Expectations and College Attendance. Journal of Children & Poverty, 20) Dr. Lokanath Mishra Finance Education is imperative for enhancing Financial Capability of Indiancitizens IOSR Journal of Business and Management X. Volume 5, Issue 5 (Nov. - Dec. 2012), PP ) Johnson, E. and M.S. Sherraden (2007).From financial literacy to financial capability among youth. Journal of Sociology & Social Welfare, 34(3), ) Jump Start Coalition (2009). Making the Case for Financial Literacy 2009: A collection of personal finance statistics gathered from other sources. Jump Start Coalition. 23) FINRA Investor Education Foundation. States Ranked Most and Least Likely to Engage in Five Key Measures of Financial Capability, 2009 National Financial Capability Study. 24)Elliott, W. and Beverly, S. (2011). The role of savings and wealth in reducing? wilt? between expectations and college attendance. Journal of Children &Poverty Center for Social Development Washington University 25)TheJournal of Children and Poverty, CSD Center for Social Development (CSD) 26)OECD (2005), Recommendation on Principles and Good Practices for Financial Education and Awareness, Directorate offinancial and Enterprise Affairs, July

9 Publish Research Article International Level Multidisciplinary Research Journal For All Subjects Dear Sir/Mam, We invite unpublished Research Paper,Summary of Research Project,Theses,Books and Book Review for publication,you will be pleased to know that our journals are Associated and Indexed,India International Scientific Journal Consortium OPEN J-GATE Associated and Indexed,USA Google Scholar EBSCO DOAJ Index Copernicus Publication Index Academic Journal Database Contemporary Research Index Academic Paper Databse Digital Journals Database Current Index to Scholarly Journals Elite Scientific Journal Archive Directory Of Academic Resources Scholar Journal Index Recent Science Index Scientific Resources Database Directory Of Research Journal Indexing Indian Streams Research Journal 258/34 Raviwar Peth Solapur ,Maharashtra Contact Website :