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. Introduction

2. Methodology

3. Results

4. Discussion

5. Conclusions

6. 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 student’s 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 spending’s 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.

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.

Graph 1.4 Necessities and Luxuries of Boys 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.

Graph 1.6 Spending on friends

The report also examined the student’s 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.

Graph 1.7 Top 3 Areas on which Boys Graph 1.8 Top 3 Areas on which Girls

spend on their friends 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 month’s end.

40%

60%

Shopping preferences(Boys)

Small neighborhood stores

Large designer stores

22%

78%

Shopping preferences(Girls)

Small neighborhood stores

Large designer stores

Graph 1.10 Boy’s shopping preferences Graph 1.11 Girl’s 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.

Graph 1.12 Frequency of borrowing money Graph 1.13 Frequency of borrowing

by boys from their friends 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 student’s 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 today’s

students tend to have money to spend on products that appeal to them. Looking good and feeling

good is a high priority among today’s 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, café 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 parent’s 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 it’s 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-their-money-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