Consumer Awareness of Market Economy

Consumer Aw arness of Market EconomyWe retire that the conditions of an economy do not remain static. The incidentors which crop it keep on changing. The rate of flow of funds in any case, changes with time in an economy, so passel have funds available in different strengths at different moment of time. It affects the lives of good deal living in that economy because to satisfy their necessitate they require funds. People al representations feel a gap, positive or negative, between their needs and required funds. So they do their pecuniary mean.In this project we have well-tried to find and analyse how and in which shipway people are doing monetary fancyning in the prevailing securities industry situations. We have also tried to find the awareness of people about current market situations, awareness of financial planning among them and their interest area of investment.Financial Planning is not a very new concept in India. It had been in dedicate in earlier social s ystems also. In the past also, people apply to do this in somewhat ways. They used to purchasing pieces of land, jewellery and keep these with them for their dis favorously days. Some of them kept their saved m whizy with so c on the wholeed Mahajanas who used to acting as banker.Though people in the past were involved in some kind of activities related to their financial planning, yet they were not very conscious and aware of the thing and were not doing this very actively.It was so because the joint family system was in that respect in the society and also the economic conditions, in the artless, were nearly static and not as turbulent and volatile as in current scenario. So people did not feel so frequently insecure.But after industrial revolution, things started to change. People started to move towards cities in searching of new earning opportunities. This leaded to a dynamic economic condition in the country and a change in family structure in the society. This thing ha s been continuing for years in the country and today we digest observe increasing number of nuclear families and varying economic conditions here. The needs of a someone and his consumption habits have also changed signifi nookytly. Further, the priorities and these needs of a person also change with change in his smell stage. So financial planning has become more relevant and important in current market scenario. But,How m whatever persons are there who examine the meaning of financial planning?How m any(prenominal) of them are actively doing it?In which ways are they doing their financial planning?These are some questions we need to find answers so that we rat conclude to a result and bear act accordingly. We have tried to find the answers of these questions in this project. private Financial Success The Six-Level PyramidUsing the six-level pyramid to help explain the various building blocks to financial success helps to communicate the development of financial planning and indications, at each level, if instruments that might be imageed.At the first level of the pyramid, there are four stages that need to be considered. onward any phase of an action plan can be implemented, an individuals current situation mustiness be determined. One must evaluate their ad hominem income because the amount of money a makes directly affects the amount that person can save. After all debts and living expenses are subtracted form income, one can know how much to put in savings every week, month or year. The amount one puts in savings is very important. This will have accusation on a spouse, children, and retirement life. Saving money should become a top priority in the financial planning accreditedm of life. Goals are an separate(prenominal) important factor in financial planning. Without goals, a person has nothing to strive for, nothing to mind forward to. This should come with ease during the implementation of a financial action plan.Career choice plays a maj or role in ones world power to live at a certain level in society. in that respect are many factors to consider when making a career choice. They include personal factors, social influences, economic conditions, and trends in the industry. A person must consider these things when deciding on a career if they want to have long-term success in any turn backn profession or calling. holding good records and being organized is a necessity for a person with a successful financial action plan. After receipts have been found, invoices filed, and chink numbers recorded, one can develop a bud puddle. A budget simply allocates income to different areas of spending. For cause, one family may spend two hundred and l dollars per week on groceries, while another only spends one hundred per week. A budget can be do on a weekly, bi-weekly , or monthly time frame basis. An important set off of an overall budget is taxes. Taxes, in general, include federal and recite, occasionally county expe nses on land ownings and other purchases. A person should be fully aware of how to calculate their taxable income and on how to get help with taxes.The second level of the pyramid involves managing. The absolute first way to begin with money management is to get the money out of a pocket ( or from under a mattress ) and put it into am interest-bearing account. Before this can be done, however, the best bank suitable to a persons needs mus be located. To do this, one must evaluate the different banks rates, fees, and other factors such as number in branched in the area and the services offered. One should examine the gains and losses of having a checking account as well. impute is a way of life for million of American today. In my opinion, one must be very cautious when choosing whether or not to use consumer reference book. on that point are almost always hidden costs and consumer traps ready to suck a trusting person in. One should be aware of possible credit mistakes and try th eir best to avoid them. Also, spending far above ones personal income level can become a major problem if taken advantage of.In the market for loans, the most enduring statement is to Shop Around A person will never know what could be gotten until they try to look for the best deal. One should be aware of the fluctuation of interest rates and the affect that they will have on the principle amount of money borrowed.The ternion level of the pyramid illustrates the major purchasing decisions in life. Should I buy that shiny new Mustang on credit or save that money for a down payment on a home in a nicer neighborhood? The allocation of personal funds is one of the most harrowing sets of decisions a person will ever make. The decision to purchase a home is in this set. This will probably be the most expensive purchase one will ever make. One should be sure that the purchase of a new home is not outrageously out of his or her income range and that it meets all of their needs. The second most important purchase would be thatof a new vehicle. A car purchase can be an exciting time. Since cars are seen as status symbols in society today, most people attempt to buy one that they cannot afford. This can be ruining to credit and make daily expenses much harder.Day to day existence in todays society can be dangerous if a person does not have adequate policy coverage for self, spouse, and children ( if any ). The fourth stage of the pyramid deals with the adequate amount of policy. How much is too much or too little? Risk management is a major factor in this. For example, a race car driver is not going to get a good a rate of insurance as a middle aged accountant. Factors such as car accidents, speeding tickets, safety measures taken, and daily activities such as smoking or imbibition all affect the amount different types of insurance will cost an individual. After life insurance, I believe that the next necessity is to have move and home insurance. These are the two mo st alike(p)ly things that someone might have to call on insurance to cover. Health care and disability insurance truly comes in to play when one has a family, nut possibly when single if severe illness occurs frequently. Finally in the fourth level, a rank must for life insurance must be chosen. This is directly affected on who will be left depending on money received from your life insurance. This insurance money can be left as a legacy, as a help for funeral expenses, or even a gift from the deceased.The ordinal stage of this financial planning pyramid is about investing. There are four unsounded ways that one can invest. They are stocks, bonds, mutual funds, and real estate. Stocks are divided into two main categories, common stock and preferred stock. Common stock makes money by dividing the value of an investment three ways income from dividends, dollar appreciation of the stock value, and stock splits. Preferred stock is similar to common stock. However, with preferred sto ck, the investor receives his/her cash dividends before the holders of common stock receive theirs. There are a number of factors that enable investors to evaluate the value of any certain stock. One can read daily newspapers, and gain information from headmaster in the stock market field. Bonds are divided into two main categories as well. A corporate bond is a corporations written pledge to render a specified amount of money plus interest gained over a specific period of time. This total is referred to as the face value of the bond. Corporations electric receptacle bonds in order to have available monies to finance expansions, takeovers, etc. This is referred to as debt financing for a corporation. The other type of bond is one that is issued by the federal, state or a local government agency. The bonds that the federal government sells are referred to as treasury bills, notes, bonds, or savings bonds. These are used to finance the theme debt and for the governments everyday ac tivities. A municipal bond is one that is issued by a state or local government. All three of these types are said to be generally risk-free. As a financial planner, I would advise my client to seriously look into bonds. Mutual funds are unique in the fact that there is diversification of the purchased portfolio. A persons money goes into a large pool, which a company then invests in many different stocks. The last type of fundamental investing is Real estate. There are different types of real estate investments. For example, your home can be an investment if handled properly or one can purchase commercial property for resale only.The sixth and last stage of the pyramid involves retirement and estate planning. Taking steps now to ensure that a person has money during retirement is particularly important. This should be linked in with the amount of money chosen to save in part one of the financial planning program. Last of all, one must know a little about estate planning. There are legal and personal aspects of this matter. Estate planning is the plan for the disposition of ones property during ones lifetime and at ones death. Legally, everyone needs to have a last will and testament to ensure that their properties are distributed accordingly. A lawyer unremarkably needs to be consulted on this matter.In summary, the most important aspect of financial planning is just what it states-PLANNING. A great deal of money can be gained and saved if the correct methods are incorporated into a persons everyday life and activities.OBJECTIVESWe have conducted the study taking following objectives in our concernTo understand customers awareness about current market/ economic scenario.To understand customers awareness about financial planning.To understand how customers do their financial planning.Capture reasons for doing / not doing financial planning.Understand the key areas where investments and savings are made and rational reasons behind the same.Review of Literature Jim Gewert Named Executive Vice President of Worldwide Finance, Planning and Systems for Warner Bros. substructure Entertainment GroupAn industry leader since its inception, WBHEG oversees the global distribution of content through packaged goods (Blu-ray Disc and DVD) and digital media in the form of electronic sell-through and video-on-demand via cable, satellite, online and industrious channels, and is a significant developer and publisher for console and online video game titles worldwide.AGL Resources AGL Resources To Webcast 2010 Annual Meeting of Shareholders on April 27During the meeting, AGL Resources Chairman, President and Chief Executive Officer buns W. Somerhalder II will provide an update on the companys financial and operating performance and its business schema.2010 MAY 1 (VerticalNews.com) AGL Resources (NYSEAGL) will webcast its annual meeting of shareholders on Tuesday, April 27, at 10 a.m. Eastern Daylight Savings Time.During the meeting, AGL Resources Chai rman, President and Chief Executive Officer John W. Somerhalder II will provide an update on the companys financial and operating performance and its business strategy.The meeting will be held at the AGL Resources corporate headquarters at Ten Peachtree Place in Atlanta.Solutions Financial, Llc Actfinancially.com Launches Personal Financial Planning WebsiteThe site includes personalized financial planning, budgeting, goal-setting tools and reports, a library of information and resources, blogs, tips, financial coaching help to manage money and community features such as forums, message boards and live chat for guidance and support.Financial Planning Steps Needed Now to Prepare for Health Care Bill Outcomes even off though the bill is still a few years from implementation, its not too soon to consider several financial planning strategies now to subside significant tax increases for the wealthy and the potential for increased borrowing costs for earners of all income levels, Kahler advises.Walking the Walk A Financial Planner Teaching His ChildrenIn an interview, Daniel M. Stern, CFP, with his children, Lily and Benjamin, talked about financial planning for his kids. Stern said theyve been doing it two years now, since right after they talked. Looking at the idea of an allowance as something you give to the children you dont base it upon work that theyre doing. Its so they can learn how to handle money and get a sense of the value of money and what can be done with it or not done with it. When it came to charity, they were trying to do it every week, but its not that jumbo of an amount to give. Ben thinks its great. It gives them experience to know how to handle money. Lily also thinks its genuinely good. Stern added that toward the last part of the year they had to adopt a spending moratorium. He thinks in todays society theres a huge amount of materialism.Lessons from Her FatherIts no surprise that 30-year-old Kimberly Allman has her finances in order. Her parents guidance dovetailed with her own financial self-discipline. A Cornell Law School alum, Allman uses her financial sensibilities in two jobs as manager at a nonprofit that helps homeowners avoid foreclosure, and as president of Allman Financial Planning LLC, her own personal finance consultancy. Allmans father helped to shape her relationship with money. Allman who is single, now follows her fathers example when she doles out advice to clients regarding debt, credit scores, and investments, among other concerns. In addition to her law degree, Allman has a bachelors in psychology and political science from Duke University, and shes set to receive a protection in financial planning from Boston University this spring. While in school she avoided frills and kept expenses to a minimum. To reach her current level of financial security, Allman resisted shopping for handbags and jewelry. specie on Your Mind The Brains Role in Financial Decision-MakingThe sophistication of modern civ ilization masks the fact that the brains have evolved little since the Stone Age. The neural programming of gentlemans gentleman beings was optimized for physical survival, not contemporary challenges such as financial decision-making. The human brain has separate, dedicated centers for coping with situations that present imminent danger or charismatic rewards. When triggered by highly stimulating personal or financial events, these centers can cause the brain to react reflexively, dampening the ability to think analytically. Technology gives people ready access to their credit, savings, and investment accounts. Unfortunately, this access makes it easier for people to act upon impulsive financial decisions. This paper examines a case study to demonstrate how perceived financial dangers or rewards can unconsciously trigger emotions that override their rational decision-making. Financial planners also can help their clients develop new methods to read to financial situations in a mo re analytical manner that is consistent with the clients primary values.A House Divided Americans Have Two Distinct Views Of RetirementThe financial hullabaloo of the past few years has taken a huge toll on Americas confidence about the future and apparent readiness for retirement, said Jamie Ohl, elderberry bush vice president and director of The Hartfords Retirement Plans Group. The Planning Dynamic But The Hartfords research shows that people who have taken the time to plan their retirement are generally in a better place financially and are significantly more optimistic about the future than those who have not planned, Ohl said.OppenheimerFunds canvas When It Comes to College for Their Kids, Women Drive the Planning Process But Many Take a Back Seat on FinancesLater College funding is an issue for women in college, after college and for decades after, for both parents and students alike. Because women outnumber men on college campuses by a factor of almost three to two, women pay the price literally and figuratively for slimy college financial planning, frequently dropping out or graduating with debt that can cast a shadow over much of their adult life, affecting even their ability to retire, Winn said.The Financial Planning Association(R) of Arkansas iShares* Make $20,000 Contribution to Arkansas Aspiring Scholars Matching Grant ProgramFor more information about the iShares 529 Plan, contact your financial advisor, call 1-888-529-9552 or visit www.ishares529.com to obtain a Program Description and Participation Agreement which includes investment objectives, risks, charges, expenses, and other important information read and consider it carefully before investing or sending money. If you are not an Arkansas taxpayer, consider before investing whether your or the designated beneficiarys home state offers any state tax or other benefits that are only available for investments in such states qualified tuition program.METHODOLOGYMethodology is a strateg y that guides a research in providing answers to research questions and for which, research survey is being done. This study has been carried in the following manner-Methodology AdoptedQuestionnaire DesignThe questionnaire was disposed(p) covering the details about the client and the above objectives. The questions were designed in an easily understandable way with the help of (Miss. Nancy sahni ) that the respondents may not have any difficulty in answering them. The questionnaire also contained a comments section. This section was included so as to get opinion of the people.Random SamplingSampling can be defined as a part of population. Thus random sampling may be defined as the selection of a hatful from the whole population in which each elements of the population has an equal chance of being selected. In this research survey people were surveyed at random to get the relevant information.Sampling TechniquesThe sampling techniques used in this project are probability sampling te chniques and the methods used in cluster sampling.Sampling UnitThe respondents who were asked to occupy out questionnaires are the sampling units. In this survey these comprise of Govt. Employees and Self Employed persons.Sample sizeThe sample size was restricted to only atomic number 6 people between age group more than 25 years which comprised of mainly peoples from the area where the survey was conducted.Data CollectionStructured QuestionnaireIn this part of data collection, structured questionnaire was used as a tool by asking a set of standardized questions which answers we needed to know.InterpretationInterpretation refers to the trade union movement of drawing inference from the collected facts after an analytical study. The simple statistical tools are used to analyze the data collection. Bar Graphs and pie chart have been used to illustrate the findings diagrammatically.AREA OF SURVEYhttp//www.radhasoamiji.in/images/map.jpgThe survey was conducted in a village BEAS and Me hru which is situated in kapurthala district in Punjab. Though it is a town of almost 40,000 people yet its market caters the need of a large customer base which comprises of people, in addition to the town people, living in several villages that border the town.It is situated near the BEAS river and second near Phagwara, so people from other side also come here for shopping. This is a reason that a big part of population here is involved in business and related activities.A good number of service class people are also present here, because of working of several Government organisations in the town. Block Office, Subdivision Office, Seema Suraksha Bal, Registration Office, Banks, Food Corporation of India, Irrigation Department, Public Work Department, Govt Schools, Municipal Office and also some other departments are working here.In financial institutions here these are presentState Bank of India (CBS)Punjab National bank of India (CBS)Bank of India conduct Insurance Corporation o f India ( Satellite Branch )Bajaj Allianz LIC Co LTD ( Branch Office )Rahika Co-operative Bank ( Branch Office )Sahara India ( Branch Office )Some other institutions like Birla Sunlife, Reliance Life Insurance, ICICI Prudential also work here controlling their activities from Main branch.LIMITATIONSThe report is prepared on the basis of responses given by the respondents and is imprisoned to the area of survey, so it does not necessarily show a pattern applicable to other areas also.Some respondents were reluctant to divulge personal information which can affect the validity of all responses.In a rapidly changing environment, analysis on one day or in one part can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.