Financial Planning and Practices among Households in Coimbatore City

Abstract

When it comes to organizing a household's finances these days, personal financial planning is the most crucial service sector. The financial issue takes precedence over all other issues. All facets of life function more smoothly when finances are in place. The term "personal finance" describes the financial management that a person or a family must do over time in order to create, acquire, budget, save, and spend money while taking into consideration a variety of financial risks and potential future occurrences.

Financial planning, to put it briefly, is the act of methodically organizing one's resources in order to achieve both short- and long-term life goals. Financial planning is the process of organizing and managing one's financial resources to enable people and families, regardless of age or financial situation, to anticipate and realize their objectives and goals.

Many financial experts contend that there is little actual evidence to support the theory that globalization leads to consumption, which in turn lowers the saving rate. The downward trajectory of public sector savings can be attributed to the government administration's negative savings. Additionally, it has been shown that increasing income is not a very powerful tool for influencing the savings rate. Most Indian households are impoverished and do not save, as is the case in many developing nations. The lack of sufficient financial literacy is one of the main causes of their poor saving habits. This article discusses the topic, gives it logical significance, and examines the financial planning and practices of Coimbatore City, Tamil Nadu, households.