I.

INTRODUCTION

1.) What is Saving?

Saving means keeping a portion of income aside for future needs. It helps
achieve long-term goals and provides security for emergencies. Savings can be
kept in safe and low-risk financial instruments.

2.) What is Investing?

Investing means putting money into an asset with the goal of earning a return
over time. It can include stocks, bonds, real estate, and other types of
investments, but it also involves some level of risk. Despite the uncertainty,
investing remains one of the best ways to grow wealth over time.

3.) Psychology of people while saving?

Understanding people's psychology is complex as it's influenced by factors like

values, attitudes, beliefs, and emotions. People have different saving habits
based on their goals, mindset, and emotions. Goal setting triggers saving
behavior, while financially literate people tend to save more.

II. MANAGEMENT OF MONEY

1.) Traditional methods

Traditional methods of managing money typically involve using cash, keeping
records manually,etc. Here are some common traditional methods of managing
money:

1. Cash-Based Budgeting: This involves using physical cash to allocate

spending in different categories such as groceries, transportation, and
entertainment. This method can help individuals limit their spending in
specific areas and avoid overspending.
2. ChequeBooks and Ledgers: This method involves manually recording transactions in a
cheque book and ledger to track income and expenses.

3. Savingwith a Bank or Credit Union: Traditional savings methods involve using a bank or
credit union to store money and earn interest. Savings accounts typically have low or no fees
and offer a safe place to store money while earning a modest amount of interest.

2.) Modern methods

There are various modern methods which a student can use but always remember this
methods are highly volatile and have a tendency of high risk these are crypto NFT, Debentures,
Bonds and new token coins.

3.) Excel Usage For Budgeting

To use Excel for budgeting as a college student, create a new spreadsheet, label the columns,
list your monthly expenses, estimate the cost for each expense, and track your actual
spending. Use formulas to calculate totals and track your budget over time. Don't forget to
regularly review and adjust your budget as needed.

These traditional methods are effective for some people,but require a lot of manual effort and
time.Traditional methods are lagging behind modern methods as they do not provide
convenience and automation like modern methods.

III. WHY TO SAVE?

Saving is an important financial habit that can help you achieve financial security, reach
your goals, and avoid debt. Saving is a layer which protects individuals from uncertainties. It
is a pool which will become your asset in future

Save to Invest

Saving to invest is a smart financial strategy to grow your wealth over time. Investing in
stocks, bonds, mutual funds, or real estate can provide returns that beat inflation and
accumulate wealth year after year. Diversification helps manage risk. Making saving and
investing a priority can build a strong financial foundation for your future.
IV. Role of Inflation
1.) Why It Is Important To Beat Inflation

Knowing about inflation is not enough, it's crucial to beat inflation percentage to ensure
our money grows and doesn't lose its value. Several instruments, like Fixed Deposits, can
beat inflation and help our money grow.

2.) Who Wins Saving OR Investing?

There's no clear winner between saving and investing, as both have their benefits. It
depends on individual priorities and goals. For those who prioritize security and low-risk,
saving may be preferred. For younger people with a long-term investment horizon,
investing may be the better choice. Ultimately, it's up to you to decide which strategy is
best for you.

3.) Role Of Compounding

Compounding helps in beating inflation by generating returns that exceed the inflation
rate, thus preserving and growing the value of the investment over time.

V. Tips For College Students

College students should schedule expenses and maintain records to save and invest.
Starting early is ideal for building the magic of compounding. Here are some budgeting
hacks for college students.

1.) Make A Spread Sheet

Microsoft Excel is a free software tool that can help college students with budgeting and
financial planning, offering various templates and mathematical formulas to make the
process easier and efficient..

2.) Invest In The Stock Market

As a college student you don’t have money but you can utilize your time in learning
stock market terminology so that you can invest some part of your saving so it will be
very much beneficial to you to get an exposure of the Indian stock mar
 3.) Various Methods To Invest
There are Investment options range from low-risk to high-risk. Low-risk options include
Nifty BeES, FDs, and RDs. High-risk options include shares, debentures, and other
volatile asset classes like crypto and NFTs, which require proper research before
investing.

Short Case Study

A college student named Ravi had savings from a part-time job and was unsure whether to save or
invest. He consulted a financial advisor, did research and decided to invest in a low-risk mutual fund
while also setting up an emergency fund. Investing helped Ravi generate a return and build wealth
over time, while also feeling more secure with emergency funds. This highlights the importance of
financial literacy and taking a balanced approach to managing finances in India.

4.) Strategies Your Monthly Income

Now the most important part comes which is recording and managing your monthly
expense As a college student, managing your monthly expenses is crucial. Focus on
spending only on essentials like tuition fees and snacks. Recording your expenses is an art,
and doing it correctly provides insights into your spending habits. Microsoft Excel is the
best tool for this, with free templates to help you get started. Maintaining a record of your
expenses using Excel can help you change your spending habits for the better. Try it and
see the difference for yourself.

THANK YOU