Rosary College of Commerce and Arts

Navelim Salcete Goa

Students and Their Spending Spree

Project Report Submitted by

Odilia Dias R-11-07 Sinclair Furtado R-11-15 Sahil Nerurkar R-11-23 Rincy Johnson R-11-31 Mohammad Bilal Zazai R-11-40

Department of BBA 2011-2014

Acknowledgement
Our deepest thanks to Lecturer, Sir Avinash Pereira, for guiding us in different matters regarding the topic. He was very kind and patient while suggesting us the outlines of this project and correcting our doubts. We would also like to express our deep sense of gratitude to the helpful students from Rosary College of Commerce and Arts for filling the questionnaires for the survey.

At last but not the least, we are very thankful to all our classmates, who helped us in the preparation of this Project Report.

Names of group members Odilia Dias R-11-07 Sinclair Furtado R-11-15 Sahil Nerurkar R-11-23 Rincy Johnson R-11-31 Mohammad Bilal Zazai R-11-40

TABLE OF CONTENTS CHAPTER NO. TITLE PAGE NO.

1. 2. 3. 4. 5. 6.

Introduction Methodology Results Discussion Conclusions Recommendations References

Executive Summary
The aim of the report was to find the spending spree of college students between the age group of 15-20 and to gain a comprehensive understanding of their purchasing decisions and priorities. A survey was conducted on the students and the information has been compiled to provide a complete insight into a students spending spree. The report represents the insights and actual monthly budgets and expenditures of student spending. It also includes insights into student spending across the following categories: Eating, Shopping, Recharge, Petrol Refill, Movies, Parties/Clubbing, Relationships, Gaming, Gambling, and Drinking. The results indicate that the majority of the students spend their pocket money largely on eating, shopping and mobile recharges. The report concludes that the spending spree of the students is quite high. However, it is recommended that students should spend their money more judiciously by spending less on luxuries. They should also reduce their spendings on drinking alcoholic beverages. Spending on mobile recharges can be reduced by increasing personal interactions should be increased. Gambling and alcohol drinking should be totally by the youths.

Introduction
Students spend their money in several different ways. Spending habits in adolescents has changed drastically in the last few years. The manner in which the college students manage their spending on various aspects such as eating, shopping, petrol refilling is based on the amount of money given, personality traits, desires and knowledge. It is important that when students are given a large amount of money as pocket money to see that they have enough of financial knowledge to know I which area of spending is a necessity or luxury. Nowadays students are subjected more to consumerism and there is too much of brand awareness amongst the students today. Commercialization has begun targeting students' spending habits very long time ago. It is only now that this commercialization has come out in-the-face, and it is very difficult to just wish it away anymore. College students are in a unique situation because they have restricted incomes and high expenses. This report examines the theme of the spending of college students. However, it does not seek to examine the spending of the students of have already started earning. The report provides an analysis of students spending based on the pocket money that each one receives. Spending spree is too much spending of money. It means spending without regard to the cost or number of items. It involves buying many items and spending lots of money.

Methodology
The research was conducted by using a questionnaire and it investigated students from Rosary College of Commerce and Arts. A total of 50 questionnaires were personally given to the students. The questionnaire consisted of close ended and open ended questions in order to get a broader understanding as to why the students spend their mentioned amounts from the options given. The filled questionnaires were collected after giving them sufficient amount of time to fill them. The survey was not forced upon anyone and their names and ages were taken so as to know the spending spree of boys and girls separately.

Results
There was a 100% response rate to the questionnaire. A breakdown of the responses is listed in the graphs below.
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Boys Girls

Graph1.1 Average pocket money received by a student per month The survey asked the students their monthly pocket money. The results showed that the average pocket money received by a boy per month is Rs.4,670 whereas the average pocket money received by a girl is Rs. 2,490 per month.

Graph 1.2 Ideal pocket money According to the results the average ideal pocket a boy desired was Rs.6,720 per month. The monthly pocket money that girls wanted was Rs.3,212 which is almost half as compared to the desired pocket money by the boys.

Graph 1.3 Average monthly spending of an individual student The questionnaire had questions where students had to mention their monthly spending on eating, shopping, recharge petrol refill, movies, parties/clubbing, relationships, gaming, gambling, and drinking. It was found that boys spent a large amount on eating as compared to girls. Majority of the boys and girls spent a lot on shopping but the girls have beaten the boys in this area. Boys spent more on mobile recharges, petrol refill, movies, parties/clubbing, relationships, gambling and drinking.

30 25 20 15 10 5 0 Necessity Lux ury

30 25 20 15 10 5 0 Necessity Lux ury

l o r t e P s e i v o M

g n i m a G g n i l b m a G g k n i r D

l o r t e P s e i v o M g r a h c R e l i b o M g n b u l c / s e i t r a P

g n i t a E

g n i t a E

p h s n o i t a l e R

g r a h c R e l i b o M

Graph 1.4 Necessities and Luxuries of Boys

g n b u l c / s e i t r a P

Graph 1.5 Necessities and luxuries of girls

The survey also allowed the participants to classify the areas of eating, shopping, recharge petrol refill, movies, parties/clubbing, relationships, gaming, gambling, and drinking into what they felt were necessities and luxuries. Both the sexes felt that eating is a necessity. The boys felt that shopping is a luxury whereas the girls felt that shopping is equally a necessity and a luxury. Mobile recharges, petrol refill and relationships were highly considered to be a necessity by both the boys and the girls. Movies, parties/clubbing, gambling, drinking were considered luxuries by both the sexes. Both the boys and girls felt that gaming is both a necessity and luxury.

p h s n o i t a l e R

g n i m a G g n i l b m a G g k n i r D

g n i p o h S

g n i p o h S

Graph 1.6 Spending on friends The report also examined the students spending on their friends. It was found that around 46% of the boys spent approximately Rs.720 on their friends. A higher percentage of girls spent on their friends. They spent around Rs.472 on their friends. The spending amount of the boys is higher than the girls.

B oys
Eating Recharge Petrol Eating

G irls
Shopping 0% Relationships

26% 37% 48% 42%

15%

32%

Graph 1.7 Top 3 Areas on which Boys spend on their friends

Graph 1.8 Top 3 Areas on which Girls spend on their friends

The questionnaire aimed to find the top three areas on which both the sexes spent on their friends. These results showed that a large majority of the boys spent money on sponsoring their friends on eating, followed by petrol and recharge. A majority of the girls also spent money on eating out with their friends. A little more than a quarter of the girls spent money on their friends while shopping and a quarter of the girls spent their money on maintaining relationships.

Graph 1.9 Percentage of boys and girls who save The survey sought to find out the how many of students save at the end of the month. It was found that around 52% of the boys saved whereas 48% of the girls saved at the months end.

S hopping preferences(B oys)

Small neighborhood stores Large designer stores

S hopping preferences(G irls)

Small neighborhood stores Large designer stores

22% 40% 60% 78%

Graph 1.10 Boys shopping preferences

Graph 1.11 Girls shopping preferences

The survey also intended to identify the shopping preferences of the students. A vast majority of both the sexes preferred shopping in large designer stores as compared to shopping in small neighborhood stores.

Money borrowing oys) (B

Money borrowing (Girls)

Never Often Very often

Never Often Very often

Graph 1.12 Frequency of borrowing money boys from their friends

Graph 1.13 Frequency of borrowing by money by girls from their friends

From the above graph it can be seen that a vast majority of boys and girls never borrow money from their friends. A quarter of the boys and girls admitted that they often borrow money from their friends. Whereas a minority of them confessed that very often they borrow from their friends.

Graph 1.14 Pocket money satisfaction rates of boys and girls The report also studied the rate of pocket money satisfaction of the students. Both the boys and girls were equally satisfied with their pocket money.

Interpretation of results
It can be seen from Graph 1.1 and 1.2 that the difference between students actual monthly pocket and ideal pocket money is low. It is a good indication that the students are quite pleased with their pocket money as they possess a sense of maturity in them. From Graph 1.3 it can be seen that the tendency of consuming alcohol is mostly seen in boys than girls. There are several more options now where they can booze and that has definitely shown a leap in their expenses on alcohol. The party culture has increased tremendously among students in general too, and in such places apart from spending on the tickets and such, students end up spending a lot for alcohol and other forms of recreational addictions too. A vast majority of the students also spend a huge amount on shopping for luxuries from branded stores. From the results in Graph 1.4 and 1.5, it can be seen that college students are spending more on Non-Necessities. Vast majority of students have a cell phone and a computer, and todays students tend to have money to spend on products that appeal to them. Looking good and feeling good is a high priority among todays college students because entertainment, personal care products and technology items other than cell phones show a slight increase in monthly spending. Students have developed the tendency of also spending on their friends. From Graph 1.7 and 1.8 it can be seen that when friends go out together they pay for their friends while eating at restaurants, caf etc. When students especially boys go roaming with their friends they fill their petrol tanks and spend money. Both boys and girls spend money in keeping relationships by spending on mobile recharges, buying gifts etc. It can be understood from the results in Graph 1.9 that around 50% of the students have cultivated the habit of saving which is a good thing. It will enable them to manage money in their future life. From Graph 1.10 and 1.11 it can be seen that students are getting more and more into consumerism with each passing day. There is too much of brand awareness. Gone are the days when students would tuck anything over their bodies, today it has to be designer brands in everything they purchase. As a result, the expenses of students on clothes and accessories have increased considerably. The money spent on eating has increased but there is also a gradual increase of amount spent on shopping, drinking alcoholic beverages and on branded products.

As noted from Graph 1.12 and 1.13 students have the tendency of borrowing money from their friends. They do not understand the consequences of sinking deeper and deeper into debt even before their earning begins. Graph 1.14 shows us that half of the students surveyed were satisfied with their pocket money which indicates that their mind is developing; they understand their parents financial situation and are learning to be content with whatever they receive. Students also spend a lot on entertainment. The reason for this is the easy accessibility of the entertainment options, including multiplexes. Shopping is also now being considered by students as a form of entertainment because of the various avenues of amusement present in shopping malls and plazas. These are a drive to attract students, who land up there, especially on their weekends and feel tempted to buy things. Students are also more aware of financial matters. As the students go closer to their graduating years, their expenses start becoming low. This is the time when they become more responsible about money and start understanding its significance.

Conclusion
The report concludes that the students spending spree is very high in three major areas of that are eating, shopping and mobile recharge. In addition to that, students are spending a lot on luxuries which is unnecessary. They also have the tendency to spend a lot on their friends. Students spend the most on their friends on eating, petrol and shopping. They also borrow money from their friends to finance their spending. The report also found that students have a fair amount monthly of savings. Shopping preferences of students are in large designer stores. The results also show majority of the students never borrow from their friends. Half of the students were satisfied with their pocket money. kjhkjhkhkhikh

Recommendations
It is recommended that since most of youth especially are not earning any income, they should spend money according to their necessities and take less money from their parents. They should be discreet while spending money and not worry their parents. Eating in college during lunch time is a necessity but drinking beverages are not necessities and are even harmful for health. Recharge and Petrol Refill are some necessities which should be limited. Mobile phones should be used only when its necessary. Students should avoid spending long hours chatting and calling their friends. Excessive roaming with friends should be limited and hence money spent on petrol refill will reduce. To maintain social relationships a person communicates with people, but it can be done by spending less money by personal interactions with them during college hours. Youths can play games like cricket, football, basketball etc. among themselves without spending money. By this way they will have relationships as well as fun. Gambling should be completely avoided as it is a bad habit, it does not provide any benefit for the youth and it is waste of money and time. It is an obstacle for the development of youth.

References
http://www.stateuniversity.com/blog/permalink/spending-habits-of-college-students-where-theirmoney-goes.html http://www.studentawardsinc.com/the-latest/News/~/media/StudentAwardsInc/Documents/SAC %20Feb%202010/SAC-Wallet-Feb-2010.ashx http://www.odassoc.com/resources/docs/student_spending_behavior.pdf http://www.buzzle.com/articles/market-research-on-student-spending.html http://www.aabri.com/manuscripts/10670.pdf http://ucsdnews.ucsd.edu/economicimpact/pdf/Appendix-B-Student-Spending-Methodology.pdf