Pollachi-Salaried employees in India continue to rely on conservative saving and investment strategies, with income, education, and work experience playing decisive roles in how money is managed, according to a 2026 study by S. Subaithani and P. Sudha from Nallamuthu Gounder Mahalingam College in Pollachi, Tamil Nadu. Published in the International Journal of Applied and Scientific Research, the research maps how socio-economic factors influence everyday financial decisions among workers with regular salaries—an issue that matters as rising living costs pressure household budgets across urban and semi-urban India.
The study examines how salaried individuals allocate their income between spending, saving, and investing, and which personal and social characteristics most strongly shape those choices. Its findings offer timely insight for policymakers, financial institutions, employers, and households seeking greater financial resilience.
Why savings and investment behaviour matters now
Salaried workers form a large and economically stable segment of India’s workforce. Their predictable income makes them central to household financial planning and domestic consumption. Yet stability does not always translate into long-term security. Inflation, housing costs, education expenses, and healthcare needs are steadily increasing, while financial literacy remains uneven.
In this context, understanding how salaried individuals save and invest—and what holds them back—is essential. Conservative financial behaviour can protect households from short-term shocks, but it may also limit wealth creation if workers avoid diversified or long-term investment options.
How the research was conducted
The researchers surveyed 85 salaried individuals using a structured questionnaire that captured demographic details, income, expenditure, savings, investment choices, and work experience. Respondents represented different age groups, education levels, income brackets, occupations, and family structures.
The data were analysed using simple statistical summaries to describe income, spending, savings, and investment patterns. To understand what drives financial behaviour, the authors examined how socio-economic variables—such as age, education, monthly income, occupation type, family structure, and work experience—influence saving and investment decisions.
Who the respondents are
Most respondents were in their prime working years, with the largest group aged 31–40 years. A majority worked in the private sector, lived in urban areas, and belonged to nuclear families. In terms of income, the largest share earned between ₹25,001 and ₹50,000 per month, reflecting a typical middle-income profile.
These characteristics mirror the broader composition of India’s salaried workforce, particularly in towns and cities where private employment dominates.
Key findings: cautious money management dominates
The study reveals a consistent pattern of financial caution among salaried individuals.
Preferred saving and investment options
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Bank deposits are the most popular choice, used by 36.5% of respondents.
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Insurance products follow at 24.7%.
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Market-linked instruments such as mutual funds (21.2%) and shares or securities (10.6%) attract fewer participants.
Income, spending, and savings
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Average monthly income is approximately ₹28,969.
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Average monthly expenditure stands at ₹16,523.
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Average monthly savings are about ₹7,577.
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Average annual investment is ₹30,901.
While these averages suggest moderate financial discipline, the distribution is uneven. A small number of higher-income respondents save and invest significantly more than the majority, pulling up the overall averages.
What shapes saving and investment behaviour
The analysis highlights several socio-economic factors that significantly influence how salaried individuals manage their money:
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Monthly income has the strongest positive effect. Higher earnings increase both the ability and willingness to save and invest.
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Education level plays a key role. Better-educated individuals tend to show stronger financial awareness and more structured saving behaviour.
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Age and work experience contribute positively, suggesting that financial maturity grows over time.
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Occupation type shows a negative influence in some cases, indicating that certain jobs may limit financial flexibility.
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Family structure, particularly joint families, can reduce saving capacity due to higher household responsibilities.
Together, these factors explain why many salaried workers prioritise financial safety over higher-risk, potentially higher-return investments.
Real-world implications
The findings have direct relevance beyond academia. For policymakers, the study underscores the need for targeted financial literacy programs that address not only low-income groups but also middle-income salaried workers. For banks and financial institutions, the results highlight demand for low-risk products while also pointing to opportunities to guide customers toward diversified investments.
Employers can use these insights to strengthen employee welfare initiatives, such as financial planning workshops or retirement advisory services. At the household level, the research reinforces the importance of balancing caution with informed risk-taking to support long-term financial security.
As Subaithani and Sudha note in their analysis, financial behaviour improves with awareness and stability. Education and experience do not eliminate caution, but they do encourage more deliberate and forward-looking decisions.
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